{"id":"F2009L02265","name":"Innovation Investment Follow-on Fund Program Direction No. 1 of 2009","slug":"innovation-investment-follow-on-fund-program-direction-no-1-of-2009","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":162116,"registerId":"commonwealth-F2009L02265-current","compilationNumber":null,"startDate":"2026-04-04","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"and may recommend a limit on the maximum","sectionType":"part","heading":"and may recommend a limit on the maximum level of investment in a portfolio investee company.","content":"# and may recommend a limit on the maximum level of investment in a portfolio investee company.\n\nMerit criteria\n\n22 The merit criteria are:\n\nA In respect of the Applicant\n\n(a) demonstrated willingness to operate within the intent of the IIFF program and previous Commonwealth programs in which it has participated;\n\n(b) demonstrated capacity, experience, skills and track record in early-stage equity investing and managing an investment portfolio; and\n\n(c) relevantly qualified and skilled personnel to ensure the capacity to continue to operate and to be able to make and to manage the proposed follow-on investments in the nominated existing investee companies.\n\nB In respect of the Follow-on Funding Proposal\n\n(a) the quality and commercial prospects of the portfolio investee companies for which funding is sought;\n\n(b) the financial status of each portfolio investee company;\n\n(c) the amount of funding proposed by the applicant and over what period;\n\n(d) how the funding sought will assist each portfolio investee company in achieving identified milestones and its business goals;\n\n(e) the attempts made to raise the funding required;\n\n(f) the amount of private/other funding the applicant has secured or is able to attract to the agreed portfolio investee companies;\n\n(g) the anticipated business development timetable and exit strategy;\n\n(h) the wider impact on the Australian economy, including employment, domestic and export sales, and the commercialisation of Australian research and development;\n\n(i) where a companion fund is to be established, the applicant’s proposal for the distribution of earnings and proceeds from the realisation of the companion fund’s investments;\n\n(j) the level and content of the applicant’s proposed recoverable expenses; and\n\n(k) the overall funding proposal.  \n\nPART 4 BOARD TO PROVIDE ADVICE ON POLICIES AND OPERATION OF THE PROGRAM\n\n23 The Board may advise the Minister, or the Minister may request advice from the Board, on non-financial administration matters relating to the IIFF program, including the extent to which the IIFF program is meeting its objectives.\n\n24 The Board may collect and analyse data on the performance of the IIFF program and provide advice to the Minister on that performance, and must cooperate with any independent evaluation of the IIFF program.\n\n25 Where the Board advises the Program Delegate on a matter in respect of which the Program Delegate is to advise the Minister, the Program Delegate must consider the Board’s advice and, in his advice to the Minister, disclose the advice received from the Board.","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This appears to be a standard program direction setting operational criteria for a specific grants program. The scope aligns with the stated purpose of administering the Innovation Investment Follow-on Fund. No evidence of scope creep beyond the original program intent is visible in this fragment."},"complexity_factors":["Fragmentary text — appears to be an excerpt rather than complete legislation, with repeated and cut-off sentences at the beginning","Only 4 substantive sections (22-25) with straightforward conditional structure","Minimal defined terms (only 'IIFF program', 'Program Delegate', 'portfolio investee companies' used without explicit definitions in this excerpt)","No cross-references to other Acts or instruments visible in this fragment","Simple hierarchical structure: merit criteria divided into two categories (A and B) with sub-points","Standard administrative law language ('may advise', 'must consider', 'must cooperate') without nested exceptions"],"plain_english_summary":"The instrument sets how the Innovation Investment Follow-on Fund (IIFF) operates, creating merit criteria for awarding government capital and an advisory board to guide and evaluate the program. It affects investment managers seeking IIFF funds, early-stage Australian companies needing follow-on rounds, and the Minister/public servants administering the scheme. The aim is to close a follow-on funding gap by backing experienced managers investing in commercially viable firms with private co‑investment and clear economic benefits."},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The instrument does not purport to broaden or narrow the program’s stated substantive remit. It defines assessment criteria, allows recommending investment caps, and sets advisory and data‑collection duties for the Board and delegates, but contains no provision that changes the programme’s core scope."},"complexity_factors":["Detailed merit criteria with many sub‑factors for both applicants and individual portfolio companies (cl 22, Parts A and B; subclauses (a)–(k)).","Discretionary recommendation of maximum investment levels into portfolio investee companies (opening lines: \"may recommend a limit on the maximum level of investment\").","Multiple decision‑makers with interlocking roles: applicants submit proposals; the Board advises and collects data; the Program Delegate advises the Minister and must disclose Board advice (cl 23–25).","Evidence and documentation burden on applicants (financial status, funding attempts, private co‑funding, milestones, exit strategy, recoverable expenses) (cl 22B(a)–(k)).","Obligation to cooperate with independent evaluations and the Board’s data collection increases ongoing reporting and oversight requirements (cl 24).","Requirement that the Program Delegate consider and disclose Board advice adds procedural transparency but imposes administrative steps (cl 25)."],"plain_english_summary":"**Sets how follow‑on funding under the Innovation Investment Follow‑on Fund (IIFF) is assessed and managed.** It lists merit criteria for applicants and portfolio companies and permits recommending caps on investment levels.\n\nAffects applicants seeking capital, their portfolio investee companies, and decision‑makers (Minister, Board, Program Delegate). Applicants propose funding amounts and recoverable expenses; the Board advises, collects performance data and must cooperate with evaluations, and Program Delegates must disclose Board advice to the Minister."}},"importantCases":[],"_links":{"self":"/api/acts/innovation-investment-follow-on-fund-program-direction-no-1-of-2009","history":"/api/acts/innovation-investment-follow-on-fund-program-direction-no-1-of-2009/history","analysis":"/api/acts/innovation-investment-follow-on-fund-program-direction-no-1-of-2009/analysis","conflicts":"/api/acts/innovation-investment-follow-on-fund-program-direction-no-1-of-2009/conflicts","importantCases":"/api/acts/innovation-investment-follow-on-fund-program-direction-no-1-of-2009/important-cases","documents":"/api/acts/innovation-investment-follow-on-fund-program-direction-no-1-of-2009/documents"}}