Published in early 2024, the Defence Industry Development Strategy (DIDS) is the Government’s plan to streamline, simplify, and accelerate Australia’s Defence industry, establishing the framework and principles of Australia’s Defence industry policies.
This includes engaging with private investors to enable them to better understand Defence’s requirements and opportunities. The Commonwealth will look to explore a pilot fund program with venture capital fund managers and other investors to assess appetite, fund size, and opportunities for investors to invest equity (or debt) in eligible Australian businesses who have developed Defence capability.
In response to feedback gathered by the Government, this program is aimed to identify whether there is a gap in the market in which small businesses cannot readily and economically access equity or debt products to further develop Defence capabilities for Australia and New Zealand Defence capability programs.
Defence has published an Expression of Interest (EOI) seeking information about the potential for a pilot fund.
This EOI will assess appetite, fund size, and opportunities for investors to invest equity in eligible Australian micro and small businesses. These businesses must have:
- Less than 50 employees
- Capabilities identified by defense as a SDIP (Sovereign Defence Industrial Priorities)
This EOI seeks responses from:
- Eligible Australian Business – The micro and small businesses who can contribute to SPID
- Equity and debt providers – fund managers, lenders, venture capital providers, and high net worth individuals looking to provide debt or equity to those businesses
The EOI responses will determine if investors are interested in developing a pilot fund or if opportunities already exist.
The closing time and date for responses will remain open until the 02 August 2024.
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