Applying for a growth grant

The Impact Investment Ready Growth Grant, funded by the Australian Government Department of Social Services as part of the Sector Readiness Fund, provides capacity building grants of up to $140,000 to mission-driven for-profit and not-for-profit organisations, allowing them to secure investment capital to scale their social impact.

We know that many mission-driven organisations in Australia have the potential to scale and increase their impact, but need investment in the form of equity and/or debt to do so.

We also know that raising capital can be challenging and often intimidating. Support from capacity building intermediaries can be invaluable at this stage – for instance to build the financial model, get the legal structuring of the organisation right, develop the Information Memorandum, and engage with potential investors. However, paying for such support can be a challenge in itself.

This is where the Growth Grant comes in. We provide grants to mission-driven organisations to pay for the capacity building support needed to raise capital and fast-track their growth and scale of impact.

 

WHO CAN APPLY

The key eligibility criteria for grant applicants are:

  • Your organisation is based in Australia
  • Your organisation has a mission at its core that aims to solve a predominantly Australia-based social problem
  • You have a sustainable and validated business model and a solid track record with the product/service you are planning to scale
  • Your organisation has at least $100,000 in revenue
  • You are planning to raise equity and/or debt financing within the next year
  • You are planning to use the grants funds to pay for external capacity building support that helps you to raise capital

 

ASSESSMENT CRITERIA

The Growth Grant Panel considers a range of factors when assessing the applications. The most important ones include:

  • What is the grant leverage, i.e. the ratio between investment sought and grant amount?
  • How does the organisation measure the social impact?
  • Is the organisation able to self-fund the Provider’s fees?
  • Is the organisation led by a capable and experienced team?
  • Do the organisation and the Provider have a clear understanding of the funding they are seeking and potential investors?

 

WHAT GROWTH GRANTS FUND

All grant funds must be used to pay for capacity building services from external intermediaries (Providers) that are directly related to your investment readiness and securing capital. The support financed by the grant must get you all the way to your capital raising.

The support needed is largely dependent on the characteristics of your organisation, but often includes:

  • Financial modelling and preparation of the investment case
  • Preparation of term sheets, legal documentation and information memorandum
  • Review of the organisation’s constitution and legal structuring
  • Liaison with and introductions to investors

Growth Grants do not fund:

  • Costs for ongoing operations of your organisation and overhead costs (e.g. rent, insurance, wages, admin)
  • Early stage trials (product, clinical, MVP-stage)
  • Marketing, branding and customer acquisition
  • Retrospective funds (support for activities which have already taken place)
  • Travel costs (except those related directly to the capital raising e.g. investment roadshow)
  • Capital raising for black box funds unless directly related to existing and proven business

 

APPLICATION PROCESS

If you believe you may be eligible for a grant, head to Application and fill out an Expression of Interest to confirm you meet all key eligibility criteria.

One of our team members will get back to you for a conversation about your eligibility, after which you may be invited to apply in one of the rounds.

EOIs are open on a rolling basis. Once a round meets capacity, any existing EOIs will be automatically be rolled over for consideration as early-entrants to the next round. We anticipate about 4 rounds/year.

Granting decisions are made by the Growth Grant Panel. The Panel evaluates screened applications and invites suitable candidates for interview.

Panel decisions are informed by the interview and applicants are notified of the outcome by the Impact Investment Ready team.

IMPACT AREAS

Early Childhood and Education

employment-training

Employment Training and Participation

house

Housing and Local Amenity

physical-health-disability

Physical Health and Disability

group

Family, Communities and Inclusion

mental-health

Mental Health and Wellbeing

financial

Income and Financial Inclusion

Indigenous People

We encourage applications from all organisations that focus on one or more of the following outcome areas. View full details:

Social Outcome Areas (PDF)

View an example Project Agreement which contains the terms and conditions that recipients must abide by in receiving a grant.

Project Agreement Example (PDF)