The Hugh Victor McKay Fund

The Hugh Victor McKay Fund is sponsored by LaunchVic & Agriculture Victoria. The Hugh Victor McKay Fund is a co-investment fund from LaunchVic and Agriculture Victoria that provides up to $200,000 to Victorian AgTech startups building farming technology.

Hugh Victor McKay Fund | AgTech Startup Investment | LaunchVic The Hugh Victor McKay Fund is a $2 million co-investment fund for Victorian AgTech startups run by LaunchVic with funding from Agriculture Victoria. The Fund invests up to $200,000 alongside individual investors, angel groups and early-stage VC’s. Up to $30,000 of the investment is provided as a grant to the startup, the remainder is taken as equity.

This means founders hold more stake in their company at the early stages. Close your capital raise faster Unlock up to $200,000 with a quick and easy application process. Hold onto more ownership of your company.

85% of our investment is taken as equity, the rest goes to the founder as a direct grant. LaunchVic will open up our networks to help portfolio founders find investors for follow on rounds, connect with government and access talent. AgriNous is a cloud-based livestock management platform that eliminates inefficiencies for livestock agencies, sale yard operators and processors.

The Leaf Protein Co are commercialising earth’s most abundant source of protein as an alternative, sustainable plant protein for the future. PHNXX are creating scalable, mobile microgrids integrating solar and battery storage for reliable, eco-friendly energy. YieldX (formerly GAIA Project Australia) has developed patented technology increasing yields of leafy green crops by up to 40 per cent.

Founding Chairman, Scale Investors Founding Chairman, Scale Investors Founding Chairman, Scale Investors Dr Charlie Day is the CEO of Jupiter Ionics, a deep-tech spinout from Monash University that is developing a novel electrochemical technology for carbon-neutral ammonia production. He has built a team of 20 scientists and engineers, securing $12M in investment and a further $6m in non-dilutive (grant) funding.

Previously, he served as the inaugural CEO of the Office of Innovation and Science Australia (ISA), advising the Australian government on science and innovation. He also led the Carlton Connect Initiative at the University of Melbourne, a $500M innovation precinct.

Special Responsibilities: Member of the Investment Review Committee Member of the Investment Committee for the Hugh Victor McKay Fund ADVISOR, INVESTOR AND DIRECTOR, AULTMORE PTY LTD ADVISOR, INVESTOR AND DIRECTOR, AULTMORE PTY LTD ADVISOR, INVESTOR AND DIRECTOR, AULTMORE PTY LTD Co-Founder, Tenacious Ventures and Partner, AgThentic Co-Founder, Tenacious Ventures and Partner, AgThentic Co-Founder, Tenacious Ventures and Partner, AgThentic Frequently Asked Questions How do you define AgTech?

AgTech is the collection of technologies that provide the agricultural industry with the tools, data and knowledge to make more informed, timely on-farm decisions and improve productivity and sustainability.

Applications of these technologies can include: plant or animal science, crop protection & input management, precision agriculture, indoor agriculture, sensors & smart farm equipment, imagery, animal technologies, processing & packaging, supply chain and hardware.

*FoodTech (food production) is generally not included in this definition, unless the business idea is technology based with high impact potential, using innovation and/or addressing scalable markets How do you define a startup? LaunchVic defines startups as young technology-based businesses that use innovation to scale rapidly and capture global markets.

Examples of technology include: software / app, artificial intelligence (AI), blockchain, advanced manufacturing & robotics, Internet of Things (IoT), big data analytics, augmented / virtual reality, 3D printing, advanced materials, genomics & life sciences (including BioTech & MedTech) and autonomous vehicles. How do you define Victoran-based?

LaunchVic defines Victorian-based as the startup must have at least 50% of its assets and employees located in Victoria and the business must be registered in Victoria. The founder(s) that meet the criteria for “agtech” are persons that have a primary residence in Victoria.

The following Investor applicants are eligible to apply to The Hugh Victor McKay Fund: An individual Angel investor ESVLCP (Early-Stage Venture Capital Limited Partnerships) Managed Investment Scheme A university venture fund* Interstate and international Individual Angels Investors, Angel Networks, Family Offices, or Early-Stage VC Funds and university venture funds are permitted to apply.

Investor applicants must satisfy the following eligibility criteria: Applicants must meet the minimum fiduciary requirements of being a sophisticated investor (as set out in the Corporations Act 200[1]) or hold an AFS license. Applicants must be seeking to invest in Victorian-based AgTech startups. Applicants must demonstrate that they are completely independent from the founders of the Startup.

*Where the applicant is a university venture fund, the applicant must disclose how much of the university’s funding for the round comes from “private, non-government-sourced funding. ” This term refers to private funds that do not originate from government entities (such as Breakthrough Victoria and any other state or federal government grants or investments).

The Hugh Victor McKay Fund will apply a 2:1 investment ratio on the private, non-government-sourced portion of the funding round, with a maximum investment of up to $200,000. Applications must be submitted via the LaunchVic online application system while the Hugh Victor McKay Fund remains active (i.e., not all funds are committed). The following applicants are ineligible to apply: Applications from Startups seeking investment.

Applications from investors into small or medium enterprises (as opposed to startups). Applications from investors into later-stage startups or scaleups. Applications from related parties.

Applications from funds utilising only public funding. The Hugh Victor McKay Fund may co-invest in rounds that include funding from public funds but the application must be made by a private sector investor (including a university venture fund) and the Hugh Victor McKay Fund will only leverage investment provided by private investors. What type of investments will be ineligible for Hugh Victor McKay Fund co-investment?

The Hugh Victor McKay Fund will not co-invest on the following: In-kind service contributions Funding provided as part of an entry to an accelerator program Funding provided by public funds Related party investments The Hugh Victor McKay Fund may co-invest in rounds that include funding from public funds but the application must be made by a private sector investor (including a university venture fund) and the Hugh Victor McKay Fund will only leverage investment provided by private investors.

How do you define related party investments? Related Parties include spouse, child, parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendent or adopted child. If a relationship exists where services are provided in lieu of equity this is also considered to be a related party.

Any funding provided by a public fund or grant also must be declared. The Hugh Victor McKay Fund will not co-invest on the funding provided by related parties or by public funds or grants. What type of investment instruments do you accept?

The Hugh Victor McKay Fund will co-invest with private investors in priced rounds or via a SAFE Note or Convertible Note Can the founder personally invest in the startup? Funding that founders put into the business is not considered by the Investment Committee. The Hugh Victor McKay Fund will also not co-invest with related party investors.

This means, the Fund will not co-invest with any spouse, child, parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendent or adopted child (or spouse of the aforementioned) of the founders. If the investment round includes co-investment from both related and non related investors, the Hugh Victor McKay Fund will only co-invest on the amount raised from the non-related investors.

I am eligible for both the Alice Anderson Fund and the Hugh Victor McKay Fund – can I apply for co-investment from both funds for the same funding round? No. Applicants need to decide whether to apply for funding from the Hugh Victor McKay Fund or the Alice Anderson Fund, as funding from both entities is not possible in the same investment round. How is Employee Share Option Plan (ESOP) taken into account?

The Hugh Victor McKay Fund will deem ESOP to be on a fully diluted basis (as if the ESOP is diluted at the time of the application). I’m a founder, how can I access the fund? Investors apply on a founder’s behalf for this opportunity, so we recommend engaging with an angel group or VC Fund to access the fund.

LaunchVic has funded the establishment of a number of angel groups in Victoria, which you can find at launchvic. org. You can find a full list of investors over at dealroom.

launchvic. org. Can Retrospective funding be included in the application?

No. Applications must be for a current investment opportunity. We won’t take into consideration amounts that have already been raised and banked with the startup. As an Investor do I need to apply for each new relevant startup?

Yes. If you have previously applied and are submitting an application for a new Investee Company from the same Investing Entity please email investments@launchvic. org to let us know and we will send you a shorter application form, for Investee Company and Deal Information only.

The application form asks for due diligence to be provided. What due diligence is required? Due diligence must be provided in the form of a deal memo outlining the investor’s due diligence findings in relation to the Startup.

At a minimum the deal memo must include the following: An assessment of the market opportunity, an overview of the traction the startup has had so far, the reasons for investing, an overview of the competitive landscape, use of funds (and runway the funds will provide), key risks and opportunities that have been identified.

As the Hugh Victor McKay Fund operates as a side car structure, the Investment Committee are relying on leveraging thorough due diligence process of private investors to inform their investment decision. If you are not the lead investor and you are relying on the due diligence conducted by the lead investor, please upload the deal memo outlining findings of the due diligence conducted by the lead investor.

The Investment Committee will not be able to make a decision on any application without a thorough deal memo being provided. Does the investment round need to have been finalised before an application is submitted? The investment round does not need to have been completely finalised before an application is submitted.

The application form asks for the minimum and maximum round size to be provided. In order for eligible applications to be approved, startups need to have raised the minimum required for the Hugh Victor McKay Fund investment ($200k) and an indication must be provided of what has been raised to date. The terms of the investment must be included in the application.

If an application is successful, at a minimum, the Hugh Victor McKay Fund will co-invest at a 2:1 ratio on the amount raised at the point of application. The final investment amount is at the discretion of the IC. Typically, investments need to be finalised within three – six months from the date of application.

How long will it take to process my application? The Investment Committee meets monthly to assess applications. Applications are accepted on a rolling basis with applications required to be submitted by the following dates to be reviewed at the following month’s Investment Committee meeting: Once the Investment Committee meeting is complete, LaunchVic will contact you with an outcome within 48 hours.

If you have any questions about this timeframe, please reach out to our team at investments@launchvic. org . If the investment is approved, what are next steps?

Once the investment is approved by the Investment Committee, LaunchVic will need to see evidence of all investment documentation and co-investment amounts from all investors in the round prior to finalising the investment. LaunchVic will also require a grant agreement be signed for the non-dilutive grant component of the investment. Have a question?

Contact our team. Which best describes you (pick one)? I am wanting to launch a startup I provide services to startups Yes, I want to hear about other ecosystem news and events from LaunchVic.