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Questions On Notice Questions on notice are usually asked when a more detailed answer is required and are in writing, and are forwarded by the Clerk of the Parliament to the relevant Minister who prepares a written answer which is presented to Parliament.
QUESTION:
With regard to the Government-owned company teQstart, would you please
advise of the relationship teQstart shares with government and the roles it
plays in the commercialisation of the companies it assists?
ANSWER:
The Queensland Government is the sole shareholder of the special purpose
company teQstart Pty Ltd. teQstart Pty Ltd was initially founded as
BioStart Pty Ltd in 2000 as a Smart State initiative designed to leverage the
flow of development capital into early stage biotechnology companies through
co-investment with the private sector. BioStart Pty Ltd was established to
manage the $3 million BioStart Investment Fund.
In 2003 the company changed its name to teQstart Pty Ltd to reflect the
inclusion of a $3.2 million complementary initiative for investment into
non-biotech high technology early-stage companies.
Both investment funds are now managed by teQstart Pty Ltd. During the
2007-2008 financial year, a further $500,000 was committed to
teQstart Pty Ltd to allow for further co-investments, providing a total
commitment from the Queensland Government of $6.7 million for the two
investment funds since 2000.
These funds are invested by teQstart Pty Ltd on a co-investment basis,
utilising Government funds to leverage additional investment from expert
private and venture capital sources. Investment decisions are made by the
teQstart Pty Ltd independent board after consideration of the private
co-investors' due diligence and interest in the investee company.
teQstart Pty Ltd is able to invest up to $250,000 into an eligible investee
company with a minimum dollar-for-dollar co-investment from private and
venture capital sources. In addition to the provision of equity capital,
teQstart Pty Ltd assists investee companies to become investment-ready by
introducing them to private sector service providers, venture capitalists,
private sector equity providers, business connections and other Queensland
Government initiatives such as i.Lab and mentoring programs.
As at 30 September 2007, teQstart Pty Ltd, through the Biostart and teQstart
funds, had an average leverage ratio of approximately 12:1 (for every $1 of
Queensland Government funding the funds have attracted $12 from private
equity). This is the second highest leverage ratio compared to 11 other
similar publicly funded domestic and international venture capital
funds/programs.
For financial years 2003-2006, the BioStart fund and its leveraged investment
was 25.1% of the estimated total venture capital investment into the
biotechnology sector in the State. For financial year 2006, the teQstart fund
and its leveraged investment was 8.1% of the estimated total venture capital
investment into the information technology sector in the State.
I am pleased to report that an independent review found that, as at
30 June 2007, the investments made into the portfolio of start-up companies
by teQstart Pty Ltd through the BioStart and teQstart funds since 2000 has
resulted in these companies achieving the following:
• created 109 full-time equivalent positions with salaries 18% higher than
the average across all Australian industries;
• generated revenues of $4.36 million;
• injected $23 million into the Queensland economy;
• spent $28.2 million on research and development; and
• attracted $26.4 million in grant funding. Last changed: [PUBLISHED_DATE] at 9:33 AM
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