Victoria’s startup ecosystem just lost a piece of infrastructure. LaunchVic is winding down, and with it goes the Alice Anderson Fund – one of the few dedicated funding sources for women founders in Australia. If you’re working with or supporting women-led startups, this matters.
So let’s get into what actually happened and what it means for the ecosystem.
What is the Alice Anderson Fund and why is it closing?
The Victorian government announced in November 2024 that LaunchVic would wind down by June 30, 2025. This wasn’t a gradual transition. It was a shutdown. The organisation that distributed over $57 million to Victorian startups since 2016 is gone.
The Alice Anderson Fund went with it. Named after a pioneering Australian entrepreneur, this fund supported women founders through a co-investment model with angel networks like Scale Investors. It deployed $10 million in government funding matched by $30 million in private capital across up to 60 women-led early-stage startups.
The fund addressed a real market failure. All-women founding teams receive approximately 3% of total VC funding in Australia. Mixed-gender teams receive 13-15%. That’s not a pipeline problem. That’s systemic.
The closure stems from the Silver Review’s recommendation to consolidate state startup support for $4 billion in efficiency savings. LaunchVic’s functions will be absorbed into Breakthrough Victoria and Invest Victoria. For the broader LaunchVic closure story and comprehensive details on what the Silver Review means for startups, see our complete overview.
The official line? The government is “refocusing” its innovation strategy. Existing commitments will be honoured, but new applications closed on November 15, 2024. If you were planning to apply, that ship has sailed.
The fund successfully invested in Elita (pet health), GonGlobal (medtech), and Neighbourlytics (which was acquired by REA Group). So it worked.
What happens to existing Alice Anderson Fund portfolio companies?
Existing portfolio companies transfer to Breakthrough Victoria’s managed portfolio. Companies like Elita, GonGlobal, and Neighbourlytics have proven the fund’s effectiveness. Neighbourlytics was acquired by REA Group. The others continue operating and can raise capital through standard channels.
But there’s uncertainty here. Breakthrough Victoria faces a $90 million annual funding reduction and a shift toward university commercialisation. Existing investments will be managed to maturity, but new Alice Anderson Fund-style investments? Unlikely. There’s no indication of continuing dedicated women-focused programs.
For portfolio companies: business as usual for existing stakes. For new applicants: look elsewhere.
What is the gender funding gap and how does it affect women founders?
All-women founding teams receive approximately 3% of total VC funding in Australia. Mixed-gender teams receive 13-15%. In Victoria specifically, all-women teams received 9% of funding in 2024, up from 3% in 2023. That’s progress, but it’s slow.
The gap worsens at growth stages. Teams with at least one female founder capture nearly half of all funding at early stages. But that drops dramatically later. In Q1 2025, only one deal over $20 million included a female founder.
This isn’t about capability. Research shows women-led startups often deliver equivalent or superior returns. The gap persists because of unconscious bias in due diligence and pitch evaluation.
The Alice Anderson Fund targeted this early-stage gap through matched funding. The co-investment model reduced investor risk while validating investment decisions through dual due diligence.
When one funding source closes, the capital often just disappears. VCs don’t suddenly start writing more small checks to women founders because a government program ended. They just don’t.
What are the alternative funding sources for women founders in Victoria?
The Alice Anderson Fund is gone, but it wasn’t the only option. Here’s what’s still available for women founders in Australia.
Government Programs
Boosting Female Founders Initiative (Federal): Still active. This matched funding program offers $52.2 million in grant support with co-contribution grants between $25,000 and $480,000. Runs through 2028.
The catch? You need angel investors first. It’s administered by providers like CSIRO and Scale Investors. Budget 3-6 months for the process.
Accelerator Programs
Startmate: This is where you go for structure and investor access. $120,000 investment per startup with follow-on funding up to $500,000. 50% of cohort companies successfully raise capital post-program, with a median round size of $1.8 million. It’s a 12 week hybrid program.
Private Sector Options
Scale Investors: The primary Alice Anderson Fund partner continues operating. It’s a Melbourne-based angel network with 250+ investors, $12 million invested across nearly 30 startups.
ALIAVIA Ventures: US and Australia venture capital targeting female founders in enterprise and consumer technology.
Artesian Female Leaders VC Fund: National women-focused VC with capital and mentorship at growth stage.
Atto VC: “A global startup school for female founders” offering early-stage funding.
Shepreneur: Revenue-based financing for female-led ventures.
Interstate Options
Queensland’s Backing Female Founders Programme and Carla Zampatti Fund (NSW): Interstate alternatives worth considering if Victorian options prove limited.
Network Support
Heads Over Heels: Pitch coaching, investor introductions, and founder peer groups. This is where you go for advice, not capital.
What Actually Works
Government programs have process overhead. You’ll be filling out forms. Private VCs expect traction and scalability. They want proof. Network programs don’t replace capital – they just make you better at getting it.
The effective approach is hybrid:
- Build initial traction with personal funds or early customers
- Use network programs to refine pitch and strategy
- Pursue matched funding while talking to private VCs
- Use government grants to reduce burn rate
If you’re advising founders, set expectations. Most alternatives require more traction, better storytelling, and more hustle than the Alice Anderson Fund did. For a comprehensive overview of broader funding pathways available across different startup stages, see our detailed funding guide.
How do co-investment and sidecar fund models work?
Co-investment or sidecar fund models involve government funds investing alongside private angel investors or VCs at predetermined matching ratios. The Alice Anderson Fund was a textbook example of this approach.
Here’s how it worked: Scale Investors would commit capital to a women-led startup, and the Alice Anderson Fund would match that investment at ratios like 1:1 or 2:1. If an angel invests $100,000 and the government matches 1:1, the startup receives $200,000 total. Simple.
This does three things: reduces risk for private investors, validates investment decisions through dual due diligence, and extends startup runway for faster growth.
Government capital follows private sector deal flow. The government doesn’t pick winners – private investors do. The government just amplifies those decisions with matched capital.
For women founders, matched funding addressed the risk perception barrier where investors underestimate women-led ventures despite equivalent performance data. If a respected angel network commits capital, and the government matches it, that’s powerful validation.
The federal Female Founders Co-Investment Fund operates using a similar mechanism.
What are the practical steps for women founders to access alternative funding?
You need a multi-pathway strategy. Here’s how to approach it:
Assess your stage: Early-stage (under $500,000) suits accelerators like Startmate and angel networks. Growth-stage ($2 million+) targets VCs like Artesian Female Leaders Fund or ALIAVIA Ventures.
Prepare data-driven pitch materials: Women founders face longer due diligence processes. That’s the reality. Counter bias with objective traction metrics. Your documentation should include financial projections, current metrics, product roadmap, competitive analysis, team backgrounds, cap table, legal structure, IP documentation, customer contracts, and references. Have it all ready.
Engage with angel networks early: Build relationships before formal applications. Attend pitch events. Warm introductions matter. Cold emails don’t.
Apply to accelerator programs: Startmate’s 50% post-program fundraising success rate shows this works. It’s not a guarantee, but it’s better odds than going solo.
Pursue federal Female Founders Co-Investment Fund: Requires a lead investor commitment first, then apply for matched funding. Get the investor, then get the match.
Research investment theses: Before applying to any VC, research their portfolio companies. Tailor applications to match their focus. Generic pitches get ignored.
Timeline expectations: Accelerators take 3-6 months. VCs take 6-12 months from first meeting to term sheet. Government programs take 3-6 months.
Don’t expect fast money. Most alternatives require more traction and better preparation than the Alice Anderson Fund did.
How does Breakthrough Victoria’s approach differ from LaunchVic’s women founder support?
Breakthrough Victoria operates with a different mandate. The $2 billion fund focuses on commercialising research from seven Victorian universities through the $100 million University Innovation Platform.
This prioritises deep-tech and research translation over early-stage ecosystem development. LaunchVic supported a broader ecosystem. Breakthrough Victoria emphasises university partnerships. Different priorities, different outcomes.
Breakthrough Victoria inherits LaunchVic’s equity portfolio but shows no indication of continuing dedicated women-focused investment programs. The $90 million annual funding reduction further constrains capacity.
For non-university-affiliated women founders, this is a structural shift. If your startup isn’t commercialising university research, Breakthrough Victoria’s programs may not be accessible to you. Understanding the implications for ecosystem health and diversity is critical for long-term strategic planning.
Frequently Asked Questions
What was the investment range for the Alice Anderson Fund?
The Alice Anderson Fund typically invested as a sidecar alongside angel networks, matching private investment at ratios of 1:1 or 2:1. Investment amounts ranged from $50,000 to $500,000 per startup. The matched funding model meant total available capital doubled or tripled. So a $100,000 angel investment became $200,000 or $300,000 in total capital for the startup.
Who was Alice Anderson and why is the fund named after her?
Alice Anderson was a pioneering Australian entrepreneur who championed women’s economic participation. The fund honours her legacy by supporting the next generation of women founders in Victoria. It’s a fitting tribute to someone who blazed the trail.
Can existing Alice Anderson Fund portfolio companies still raise additional capital?
Yes, portfolio companies can continue raising capital through standard investment channels. However, they won’t receive additional Alice Anderson Fund matched capital – that program is done. Breakthrough Victoria may provide follow-on investment, but this isn’t guaranteed. Don’t count on it.
Are there any women-only VC funds operating in Australia?
Several women-focused VC funds operate nationally: Artesian Female Leaders VC Fund, ALIAVIA Ventures, Atto VC, and Shepreneur. Scale Venture Fund continues supporting women founders through angel network investment. So yes, there are options.
How does the federal Female Founders Co-Investment Fund work?
The federal Female Founders Co-Investment Fund operates as a matched funding program requiring a lead investor commitment. Once a women-led startup secures investment, the co-investment fund can match that capital. The Boosting Female Founders Initiative offers $52.2 million in grant support with co-contribution grants between $25,000 and $480,000. First you get the investor commitment, then you apply for the government match.
Should Victorian women founders consider relocating to access better funding?
Relocation decisions should weigh funding access against ecosystem benefits and personal circumstances. Victoria led Australian states in funding women-led startups with 29% deal share in 2024. Victorian founders maintain access to national programs regardless of location. Interstate relocation may make sense for sector-specific opportunities, but it’s not automatically the answer. Do the analysis first.
What is the success rate for women founders in accelerator programs?
Startmate reports approximately 50% of cohort participants successfully raise capital post-program, with a median round size of $1.8 million. Accelerators provide structured support reducing pitch bias. Success rates vary by program, but structured pathways generally improve outcomes versus cold pitching. It’s worth the time investment.
How long does it typically take to secure VC funding as a woman founder?
VC funding timelines vary, with 6-12 months typical from first meeting to term sheet. Women founders often face longer processes due to bias. That’s frustrating, but it’s the reality. Building relationships before formal pitches reduces timeline. Accelerator participation provides faster path through structured introductions. Budget 3-6 months for government programs.
What documentation should women founders prepare for alternative funding applications?
Comprehensive documentation includes financial projections (3-5 years), current metrics, product roadmap, competitive analysis, team backgrounds, cap table, legal structure, IP documentation, customer contracts, and references. Data-driven materials counter unconscious bias by emphasising objective performance metrics. Have everything ready before you start the process.
Will Invest Victoria provide similar support to what LaunchVic offered women founders?
Invest Victoria operates as a centralised “single entry point” for industry support. However, specific commitment to women founder support remains unclear. The focus on consolidated services may reduce specialised support previously available. Women founders should monitor Invest Victoria announcements for program details. Don’t assume continuity until you see it confirmed.
What happens to the LaunchVic Press Play and Basecamp accelerator programs?
The future of LaunchVic accelerator programs is uncertain during the transition. Some programs may continue under Invest Victoria with modified scope, while others may be discontinued. Affected startups should seek clarification directly from Invest Victoria on program continuity. Don’t wait – ask now.
How can you support women founders in your network during this transition?
Provide valuable support through technical mentorship, customer and investor introductions, advisory board participation, and strategic guidance. Make warm introductions to angel networks and VCs. Share honest feedback on pitch materials. Consider offering fractional technical leadership or advisory roles to help founders reach fundable traction. Your network and expertise are valuable – use them to help.
