By Matthew Proft, Jobs for NSW Client Engagement Manager, Startups
Startup founders might be surprised to learn the NSW Government offers up to $25,000 to fast track the creation of a Minimum Viable Product (MVP).
The Government funds startups… really?
Yes. We know financial support helps defray some of the challenges startups encounter. A Minimum Viable Product (MVP) grant means more fledgling businesses go on to become success stories. While not every startup will become the next Atlassian, Jobs for NSW recognises that early stage financial support translates into future business success and subsequent job creation – and that is what Jobs for NSW is all about, creating the jobs of the future.
Our MVP grant supports promising pre-revenue startup businesses across all industry sectors to progress from proof of concept to a minimum viable product stage of development.
The grant provides up to $25,000 on a matched funding basis – so if it's going to cost you $50,000 to build your MVP, we will provide up to half of that amount.
Is there a catch? Like all good Government grant programs, there is an application process (we don’t hand cash out willy nilly). It might be lengthy, but it’s pretty painless, and well worth your effort.
The MVP grant provides support to pre-revenue startups. (So, if you’re already making money, then congrats, and go check out the other funding available to you instead).
Important stuff you’ll need to tell us
To be successful in your MVP grant application we need to understand a few things about you, such as what problem you are seeking solve, and what Intellectual Property (IP) have you created to solve that problem.
As mentioned above, the MVP grant provides up to $25,000 on a matched funding basis. If it's going to cost you $50,000 to build your MVP and we provide half, you need to tell us how you will fund the other half (this is very important).
We assess your application against four criteria:
Economic Benefit to NSW
We want to understand from you why your solution is good for this great state. Does it create more jobs? Do you have a plan to export this solution to world? Does it benefit rural or regional areas?
Level of innovation
What’s the big idea and how is it differentiated from others in the market? Is there a technology or application of technology that will get you to the market sooner?
Strength of business model
What’s the size of the opportunity that you are looking at and how are you are going to make money out of this? Who are the team members working on this project? (We understand that startup success is largely about the team). And have you got a customer who can help you validate the product that you are creating? We really value understanding who that customer is, and how they will help you.
Industry sector benefits
We would like to understand what difference your innovation can make to the industry in which it operates, and what market gap have you found (or problem you are solving).
Eligibility and Application forms
Not sure if you’re eligible? Check here. After that, it’s a simple, online application process that founders can do themselves (no need to outsource to a pro). And we really value hearing from founders or the founding team. So get in touch if you’re unsure.
Show me the money!
We pay you in two parts. A modest upfront payment, followed by the balance upon completion.
So assuming you received a $25,000 grant it works out like this:
Firstly we give you 35% ($9000) up front.
Then you get the remaining 65% ($16,000) on completion of your MVP. (We find this happens around 3-6 months later).
And after that?
You’re only eligible for one MVP grant. But wait… there’s more. As your business grows, we also offer other types of follow on funding.