The Business Investment Fund (BIF) has been created to support established small and medium businesses to innovate, realise their potential, and promote job creation in Queensland. The BIF is partnering with growing Queensland companies to take the next big step in their business, create strong investment returns, and support the future of the Queensland economy.
The BIF forms part of the Backing Queensland Business Investment Fund (BQBIF), which was announced as part of the Queensland State Government’s COVID-19 Fiscal and Economic Review. The BQBIF is dedicated to making direct investments in Queensland business and industry and is managed by QIC.
About BIF
Why was BIF created?
BIF was established to facilitate investment in Queensland businesses, with the primary objectives of achieving commercial investment returns, promoting job growth and increasing access to growth-stage capital in Queensland. The BIF aims to help innovative small and medium-sized local businesses to grow, generating returns for investors, creating new jobs, and supporting the future of the Queensland economy.
How are BIF investments structured? Is this grant funding?
BIF invests directly in the business. It is not a grant or a loan.
How much money will BIFs invest in a business?
BIF will consider initial investments of between $2.5 million and $10 million. The BIF may consider a follow-on investment.
Does the business need to be based in Queensland?
Businesses will require a Queensland presence to be eligible for BIF investment. This can be existing or intended and must extend to a Queensland-based workforce.
Does the business have to have a co-investor? How does BIF define ‘co-investors’?
No. Whilst the BIF will primarily consider co-investments, the fund will consider direct investments in certain opportunities. The BIF considers a third-party investor, investing alongside the Fund a co-investor. A founder, employee, or the business itself is not considered a co-investor. For more on BIF’s investment criteria, click here.
What industries does BIF prefer to invest in? What is the BIF restricted from investing in?
While there are no industry-specific preferences, BIF is restricted from investing in businesses whose primary activity is construction, property development, or ownership (other than companies developing technology solutions for those industries) or holding an AFSL or providing financial services as defined by ASIC. There are no further industry-specific restrictions, BIF aims to engage a wide range of innovative Queensland businesses for potential investment.
How does the BIF determine whether a business has a proven product/offering and an established market presence?
When assessing if a business has a proven product/offering and an established market presence, the BIF considers the sustainability of a business’s revenue and how many customers/clients it has in the context of the target market size.
Also consider the following:
Has the business generated operating revenues of at least $3M over the trailing twelve-month period or can evidence contracted operating revenue exceeding $3M over the next 12-month period. For businesses generating project revenue, have they completed/are contracted to complete more than one project
Does BIF invest in companies with negative EBITDA?
Yes, BIF will consider investment opportunities for businesses with negative EBITDA (providing other criteria are satisfied), in the context of the forecast timeframe to profitability.
We can help your business transform through government-funded pathways such as the Business Investment Fund (BIF). To find out how Ronan Analytics can help, please get in touch with us at enquiry@ronananalytics.com.
