LaunchVic, the State’s startup agency, has seen its budget slashed in half as part of Daniel Andrews budget cuts to Jobs, Industry and Innovation.
LaunchVic was announced with much fanfare in late 2015, with the agency and their Startup Fund as the centrepiece of the Government’s aim to make Victoria “the location of choice for startups worldwide”.
LaunchVic received $60 million over the past three years (equating to approximately $20m per annum) and now they are expected to continue helping develop, incubate and grow early-stage innovative businesses with just $10m next financial year and no commitment for funding beyond that.
Earlier this month, the Global Startup Ecosystem Report placed Melbourne just outside the top 30 cities worldwide, as Sydney slipped 6 places 23. While the opportunity to establish Melbourne as the premiere location for startups has never been more within our grasp, Daniel Andrews is taking an axe to our startup and innovation agency.
This ill-advised cut is part of a broader cutbacks of $130 million next year to the Government’s agenda to create jobs, attract investment and build an innovative Victoria.