Source: Getty
The $52.2 million Boosting Female Founders scheme is facing fresh setbacks, with the federal government telling nearly 700 applicants not to expect updates before June — an eight-month delay to the program’s initial time frame.
The Boosting Female Founders grant program, launched in 2020 under the Morrison government, promises female-founded startups up to $480,000 in co-contributions to help them scale their enterprise.
It was designed to help “women entrepreneurs overcome the disadvantages faced in getting access to finance,” an online portal says, reflecting the barriers facing female founders and the tendency for investors to channel their capital towards Australia’s male founders.
Startups including Rejig, Aubot, and Air Robe have benefited from earlier rounds, with Ripple co-founder Skye Riggs describing the funding as “absolutely catalytic” for her startup.
Get daily business news.
The latest stories, funding information, and expert advice. Free to sign up.
Round Three of the scheme, offering $11.6 million in funding, formally opened in May 2022.
Applicants were initially invited to share their expressions of interest (EOI) before October 2022, when shortlisted applicants would progress to the next stage of the application process.
The roll-out of grant funding was anticipated to start in February this year.
However, the Department of Industry, Science and Resources (DISER) informed applicants late last year that Round Three had been delayed.
After a lengthy wait for news, DISER on Friday informed some 697 applicants they would not learn the preliminary results of their Round Three EOI until June 2023, according to an email viewed by SmartCompany.
“While every effort is being made to progress the assessment of Round Three EOI applications, there have been delays,” the email read.
As the grant operates offers matched funding, the latest delay is particularly concerning for startups whose would-be investors may be holding out for Round Three results.
“We understand that your circumstances may have changed and if you no longer wish to continue with your application for this round, please contact the team… to withdraw your application,” the email continued.
“Thank you again for your patience.”
Government audit behind delays
In a statement obtained by SmartCompany, a DISER spokesperson said the delays are linked to the Albanese government’s Government Spending Audit — a close-up examination of prior spending pledges which has already redirected $197.7 million in “uncommitted funding” from the separate Entrepreneurs’ Program.
“The [Boosting Female Founders] Initiative was considered under the Audit and as a result, the delivery of Round Three has been delayed,” the spokesperson added.
The setback means the outcomes of Round Three EOIs will be revealed after the federal government hands down its 2023-2024 Budget in May.
When asked if the Budget will affect funding for the Boosting Female Founders scheme, the department said Round Three “has up to $11.6 million in grant funding available.”
However, “future funding is a decision for the Government,” they said.
Delays besetting one of the federal government’s most prominent startup grants arrive during a separate review of initiatives to boost diversity in Australia’s sciences, technology, engineering, and mathematics (STEM) sectors.
That review, which has paused new funding for initiatives designed to expand the make-up of Australia’s STEM workforce, has not contributed to setbacks in the Boosting Female Founders grant scheme, the DISER spokesperson said.
“The Government has committed to maintaining all current programs while the [Diversity in STEM Review] is underway.”
Latest setback one of several
While the Government Spending Audit has introduced new delays, it is not the first setback to befall Boosting Female Founders program.
It has long faced criticism over its eligibility criteria, with some early applicants saying they were excluded when the program attributed half of their startup’s equity to their husbands — despite them having no involvement in the business.
Some startups with founding teams evenly split between women and men said they were excluded, as outside investment from male investors pushed the gender-equity balance outside of the scheme’s strict eligibility criteria.
Separately, hundreds of applicants to Round Two were falsely told their EOI was accepted into the next phase, only for the federal government to walk back its claims.
Hours later, I received the 'whoops' we made a mistake. @Aus_Industry #NotOK #NotOK #NotOK pic.twitter.com/t0lDTabFwD
— Yasmin Grigaliunas (@yasgrigaliunas) July 19, 2021
Handpicked for you
Cauldron brews $10.5 million to globalise its precision fermentation platform
COMMENTS