Ignite Ideas Fund: Funding to Commercialise Innovative Products & Services

What is the Ignite Ideas Fund?

The Ignite Ideas Fund is an initiative of the Queensland Government’s $755 million Advance Queensland program, aimed at supporting jobs and fostering an innovation-led economy. The fund provides grants of up to $100,000 (Tier 1) or $200,000 (Tier 2) to enable eligible Queensland businesses to commercialise highly innovative products and services into domestic and global markets. The key objectives of the program are to:

• • Accelerate the commercialisation of innovative Queensland products and services
  • Encourage greater investment in Queensland-based businesses
  • Create new high-value and knowledge-intensive jobs, particularly in regional Queensland
  • Stimulate the Queensland economy through increased business activity and exports

Key dates

• • EOI Applications open 8 March 2024
  • EOI Applications close 8 April 2024

Available funding

The Ignite Ideas Fund offers two tiers of funding to support the commercialization of innovative products and services: Tier 1: Up to $100,000

• • For Tier 1 funding, applicants must contribute a minimum of 20% of the total eligible project costs in cash. For example, if your total eligible project budget is $125,000, you can apply for up to $100,000 in Ignite Ideas funding but must be able to contribute at least $25,000 of your own cash to the project.

Tier 2: Up to $200,000

• • For Tier 2 funding, the applicant cash contribution requirement is higher at a minimum of 50% of total eligible project costs. So, for a project with a total eligible budget of $400,000, the maximum Ignite Ideas funding available would be $200,000 and the applicant must contribute the remaining $200,000 in cash.

It’s crucial that applicants have a clear project budget and can demonstrate the ability to fund the required matched cash contribution before applying. The application form requires a detailed breakdown of project income and expenditure, showing the specific activities and costs that the Ignite Ideas funding and applicant cash contribution will go towards. Putting together a realistic budget and securing the necessary co-contribution funding is often one of the most challenging aspects of a grant application process. You should consider using a grant consultant like NOAH Connect when unsure about the details of calculating eligible expenditure.

Eligibility

Eligibility for the Ignite Ideas Fund is based on a range of criteria relating to the applicant business, the product or service being commercialised, and the proposed project activities. Let’s break down each of the key eligibility requirements in more detail.

Eligible businesses

To be eligible for Ignite Ideas funding, the applicant must be a business that:

• • Has its headquarters based in Queensland
  • Is registered for GST and holds an active Australian Business Number (ABN)
  • Has fewer than 50 full-time equivalent (FTE) employees
  • Is not a subsidiary of a group of companies that has 50 or more FTE employees in total

Product/Service Eligibility

The product or service that the applicant is seeking to commercialise through the Ignite Ideas Fund must meet the following key criteria: Is at (or beyond) the minimum viable product or service stage

• • The product or service must be sufficiently developed and validated to demonstrate its commercial potential. It should have its core features and functionalities in place and have been tested with potential customers or end-users to validate the value proposition and market demand. Earlier-stage research and development activities are not eligible for funding.

Represents an innovative solution that is new to Queensland or the world

• • The product or service should be highly innovative and offer a unique solution that is not already available in the Queensland market or has the potential to disrupt global markets. Incremental improvements to existing products or services are unlikely to be considered sufficiently innovative.

Has a clear path to commercialisation and the potential to generate new revenue and jobs

• • There should be a clear commercialisation pathway for the product or service, with evidence of customer demand and willingness to pay. The applicant should demonstrate how the commercialisation of the product or service will lead to increased sales, exports and job creation for their business and the wider Queensland economy.

Project Eligibility

The proposed commercialisation project that the funding will go towards must involve eligible activities and costs as outlined in the Ignite Ideas Fund guidelines. Eligible activities are those that assist the business to successfully launch and grow the innovative product or service in the market, such as:

• • Sales and marketing activities to secure customers
  • Meetings and demonstrations with potential buyers and partners
  • Participation in industry events and trade shows
  • Proving the commercial viability of the product/service to customers and investors
  • Investigating and testing production and logistics processes
  • Protecting new intellectual property
  • Engaging professional services for specialist commercialisation advice

The project activities and budget must be able to be completed within the designated timeframes of up to 12 months for Tier 1 projects and up to 24 months for Tier 2 projects. Ineligible projects and activities include:

• • Pure research and development activities with no clear commercialisation outcome
  • Projects designed to maintain an existing product/service without any new innovation
  • Commercialisation projects that have already commenced or been completed
  • Costs related to ‘business as usual’ operations or not directly related to the eligible project activities
  • Projects primarily focused on domestic sales without any export potential

What can the funds be used for?

Ignite Ideas Fund expenditure must be for project-specific commercialisation activities and fall within these eligible cost categories:

• • Salaries (including on-costs) for new employees directly contributing to the project
  • Salaries (including on-costs) for founders and existing employees directly contributing to the project (capped at 20% of the total grant)
  • Services from unrelated external parties
  • Equipment under $10,000 per item (capped at 10% of the total grant)
  • Consumables
  • Travel, accommodation and subsistence costs

All funding should be spent in Queensland, unless essential for project success. Costs must be appropriate and reasonable.