NSW Plans $150M Fund to Turn University Research into Startups
Synopsis
New South Wales is proposing a $150 million fund to commercialise university research and create startup spinouts, with the initiative targeting health, deep tech and other research-driven sectors while seeking to attract greater private investment into innovation.
The New South Wales government is proposing a $150 million science and innovation fund to help turn university research into commercial products and new startups, with a particular focus on health and research-driven businesses.
NSW Treasurer Daniel Mookhey announced the proposed fund at the Sydney Investment Summit, saying it would invest alongside universities and help bridge the gap between scientific breakthroughs and businesses capable of bringing them to market.
The fund is planned to begin in July 2027, subject to the Labor government winning the state election in March.
The initiative will be developed jointly by NSW Treasury, Investment NSW and Chief Scientist and Engineer Professor Hugh Durrant-Whyte, working with local universities.
However, the government has not yet disclosed investment amounts, co-investment requirements or how individual startups will apply for funding.
Focus on Research Commercialisation
The proposed fund will initially work with universities that already have established startup programs, including UNSW Founders, UTS Startups and Western Sydney University’s LaunchPad.
The government says the initiative will form part of a broader research innovation framework, with a strong focus on health. It aims to strengthen innovation within NSW Health while bringing medical research institutes together to share expertise, infrastructure and research capabilities.
The plan follows the Pounder Review, led by former Tech Council of Australia chief executive Kate Pounder and released in 2025. The review identified research commercialisation as an area where NSW could improve, particularly across deep technology, biomedical research and environmental science.
Government Bets on University Spinouts
The government says innovative businesses already make a significant contribution to the NSW economy. According to the review, innovative businesses generate $39 billion in annual gross value added and employ 136,000 people, despite accounting for only 1.8% of businesses.
NSW Skills, TAFE and Tertiary Education Minister Steve Whan said the proposed fund would address the difficult transition between laboratory research and commercially viable products.
The government ultimately wants to expand the fund beyond universities, attract more private capital and help research-based companies scale. No timetable has been provided for that expansion.
The proposal comes as NSW prepares for its next state election, scheduled for March 13, 2027, giving the government a major innovation policy to take into the campaign.
Source: Startup Daily
Vishal is an experienced Editor at Inspirepreneur Magazine with key interests in artificial intelligence, eCommerce, entrepreneurship, lifestyle and startup sector. Prior to joining Inspirepreneur, he was a Content Writer cum Correspondent at Siliconindia Magazine, where he worked on Company Profiles, Cover Stories, Executive Profiles, Feature Articles and Thought Leadership content.
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