Spacecubed is aiming to expand WA’s innovation sector through new research, collaboration and grants program after signing a three-year funding agreement with Lotterywest.
Spacecubed is aiming to expand Western Australia’s innovation sector through new research, collaboration and grants program after signing a three-year funding agreement with Lotterywest.
The $5.9 million grant was presented by Innovation and ICT Minister Stephen Dawson today, ahead of a function to mark the not-for-profit enterprise’s 10-year anniversary.
It will allow Spacecubed to expand its networking and collaboration activities, increase funding programs for startups and undertake detailed research on WA’s innovation sector.
Founder and managing director Brodie McCulloch said the grant funding will enable Spacecubed to create a pipeline of thriving and resilient entrepreneurs, innovators and changemakers, as well as build a thriving, resilient and sustainable innovation ecosystem.
“This Lotterywest grant allows Spacecubed to take what we have learnt over the last ten years and give greater support to the whole innovation ecosystem,” he said.
“If we as a community don’t invest in a smart and innovative society, we will be more susceptible to be impacted by wicked problems and disruption.
“There needs to be an investment in the skillsets, toolkits and mindsets of West Australians, to not only support individuals to thrive, but to build a more resilient community and economy.”
Mr Dawson said the Lotterywest grant would provide a major boost to WA’s innovation ecosystem.
“This new support will feed into the work of the $16.7 million New Industries Fund, which has been supporting entrepreneurs and innovators since 2017,” he said.
Lotterywest was one of the early backers of Spacecubed, providing a $200,000 grant in 2012.
Since then, Spacecubed has grown to be a substantial enterprise in its own right, with consolidated revenue last financial year of $7.9 million.
The new funding will allow Spacecubed to launch Catalyst, a program that will provide grants of up to $100,000 to the not-for-profit sector.
The funding will go to organisations with programs, projects or events that will enhance WA’s capacity for innovation or develop the organisation’s own innovation capacity.
This will build upon another new initiative – Lotterywest’s IdeaStarter will provide grants of up to $15,000 to not-for-profits delivering innovation incubators or accelerator programs or services.
These funds can be used to test an ‘early stage’ innovative idea, validate that the idea has an opportunity and progress it towards further investment or support.
Perth has been home to multiple programs of this type, including Curtin University’s Accelerate, HBF’s Activate and Amcom Upstart, however Spacecubed’s Plus Eight Accelerator has been the most impactful, with more than 30 startups completing the program since 2017.
It has enabled the participants to develop their ideas and obtain seed funding from program backers, which include RAC’s venture capital fund, BetterLabs Ventures, along with Woodside Energy, Capricorn Society, Visagio, Hawaiian and Eastcourt.
There will be a $500,000 pool of seed funding for the participants in this year’s Plus Eight program, adding to the $1.5 million invested in prior years.
More significantly, there has been $15 million of follow-on investment in Plus Eight participants, including the likes of U Group, Snackr and IDEA Academy.
That investment underpinned the $91 million valuation of the Plus Eight portfolio companies.
Mr McCulloch acknowledged data on WA’s innovation sector was limited.
“We have data from looking at the companies and their valuations but there is no really deep research into this.”
That is why Spacecubed will be using some of the Lotterywest funding to support development of the Innovative Society Index – a 10-year project to research and measure development of an innovative society in WA.
This will include measuring the impact of grants programs and hosting an annual summit on the research results and future priorities.
Another new initiative is Meshpoints, aka the Innovative Society Constellation.
This program will support networking and collaboration across the innovation sector in WA.
Spacecubed operates four major co-working spaces across three locations along St Georges Tce, with nearly 1,300 members paying to use these spaces.
Its programs include the Plus Eight Accelerator, which has supported the development of more than 30 businesses.
And more than 5,000 women have learnt how to code through the She Codes program, with three quarters now employed in technical roles.
Lotterywest chief executive Ralph Addis said Spacecubed was a perfect example of the gaming agency’s commitment to building a better WA through its grants program.
“I’m looking forward to seeing the outcomes of these exciting programs, particularly the ‘Lotterywest Idea Starter’ which will support early stage innovative ideas that can positively contribute to Western Australia being a smart, innovative society,” Mr Addis said.
Editor’s note: For an in-depth feature on Spacecubed, its history and future plans, see the next Business News magazine, available online and in print on Monday 25 July.
