[spiggytopes999]

Queensland-based startup here in the fintech space. Having been through the wringer several times applying for Qld and Federal government grants, I’d be very cautious before getting too enthusiastic about this offer. Here are my experiences:

Applied and was offered a $75k COMET (Commercialisation of Emerging Technologies) grant a few years back. Before accepting, I had a chat with another recipient, who warned me off. The grant wasn’t a grant at all; you had to take a government appointed ‘advisor’, and when you raised your first round they were entitled to take a percentage of the funds (which could have been a multiple of the original $75k), even if their contribution had been zero. I declined the funding.

Applied twice for Commercialisation Australia (2010, $200k) and Early Stage Commercialisation (2014, 100k) grants. Both were grants without taking equity. Spent several thousand dollars and many weeks crafting the strongest possible application. Both times we were told we had extremely strong applications (great market fit, previous entrepreneurial experience, strong interest from overseas) and were highly likely to get the grant. Both times there was a change of government two weeks before the final signoff date, and both times the funding programs were closed down without warning, to be replaced by something very similar a year later. To cap it off they didn’t even bother sending out a formal letter to applicants – I got a phone call in the first instance and a brush-off email in the second.

I’m not saying don’t apply, but personally the time spent in applying for these grants would have been far better spent working on our product.

[jaaames]

CA grant is such a weird premise as you essentially need to be in a position where you've done the R&D (i.e. spent all the cash) but don't have enough sales yet.

Having applied for $150k for another STEM related grant in NSW with a very strong application in hindsight I would rather have spent the time and effort focusing on the core business.

If you consider grants and applications as an expected value calculation (grant size * % chance of award * implications of being awarded) a business is often doing themselves a disservice by applying.

[spiggytopes999]

I completely agree. About the only grant program that sounds worthwhile is the EMDG (Export Market Development Grant) which reimburses some of your sales-related travel costs - up to 50% from a minimum spend of $15k. Apparently this isn't too hard to get, but you have to have spent the cash first.

[zdam]

Can you tell us about your startup or put some info in your profile?

[spiggytopes999]

Company writes risk analytics software for fund managers. Development team in Queensland, marketing in the UK. Clients in London, Zurich, Canada, expecting 100% growth in revenue by end of this year. Almost entirely self-funded (I've had investors before, life is easier without). I travel 4-6 times a year to the UK from Brisbane - fortunately have learned the tricks to sleeping in an economy seat.

Interested in hearing other Australian experiences. For instance, Westpac Reinventure were started to invest in Australian fintech, but when I contacted them they said they wanted companies with a focus on the Australian market - which is crazy, in our field we have to go world-wide right from the start.