The NSW Government is to allocate $10 million in its 2022-23 budget to establish a female founders-focused venture capital fund.
The fund will be titled the Carla Zampatti Fund after the pioneer NSW businesswoman who died last year.
State treasurer Matt Kean said the fund would invest in start-ups led by women.
“The need to reduce the gender pay gap is well known. What’s less known is the gender investment gap, with women-led start-ups receiving only about 5 per cent of venture capital funding in Australia last year,” Kean said.
“This fund will unleash a new wave of female entrepreneurs, providing women with more opportunities to finance their start-ups and take their businesses to the next level.”
Italian-born fashion designer Carla Zampatti founded her business in the 1960s when very few Australian businesses were led by women. She was later a founding member of the organisation Chief Executive Women.
“Carla Zampatti was a champion of Australian women and a multicultural success story. This fund will continue her mentoring work by supporting the next generation of female trailblazers,” Kean said.
Minister for women Bronnie Taylor said access to funding would help more women realise their dreams of starting and growing their own businesses.
“Female-owned businesses have a proven track record of success, but the balance isn’t right with female entrepreneurs far less likely to receive venture capital funding,” she said. “This fund will help women get their ideas off the ground.”
Minister for small business Eleni Petinos said women currently made up about a third of small business owners in NSW. The venture capital fund would encourage more to start their own businesses, she said.
The NSW government plans to consult with the private sector in structuring the fund and will seek private sector support to boost the capital pool. The fund is expected to be ready to accept funding applications by the end of 2023.
Victoria already has a state government financed female founder-focused fund, the Alice Anderson Fund, launched last year under the LaunchVic initiative.