Get Funded: 3 Must-Know Tips for the MVP Ventures Grants Program NSW

Do you have a working prototype in your workshop? A product that is almost ready but needs that last push to the market? You are not alone. Most innovative businesses encounter this same barrier between having a good idea and actually selling it. The MVP Ventures Grants Program exists to bridge exactly this gap.

Minimum Viable Product (MVP) is a funding program by the NSW Government. It has been developed to assist early-stage startups and small and medium-sized enterprises (SMEs) in overcoming the obstacles to selling viable products and achieving commercial success.

This blog post provides everything you need to know about securing up to $50,000 to commercialise your innovation.

What Is the MVP Ventures Grants Program?

The Minimum Viable Product (MVP) Ventures Grants Program supports early-stage businesses across NSW as they progress from prototype to market-ready products. Think of it as matched funding that helps you complete the crucial validation, testing, and development work needed to attract serious investors.

Investment NSW runs the program as part of the broader Future Economy Fund. The goal is straightforward! Continue to commercialise innovative ideas in NSW and support businesses in advancing their Technology Readiness Level (TRL) from 3 to 9.

What gives the MVP program its unique value is that businesses with good performance have the opportunity to pursue additional funding. Thus, you can continuously reapply for more funding and avail yourself of help during the various stages your product passes through in development.

Funding Details That Matter

Grant Amounts: $25,000 to $50,000 Available

The MVP Ventures Program offers substantial funding to help you commercialise your innovation. Depending on the scale and demands of your project, the funding could range from $25,000 to a maximum of $50,000, as available under this program.

This isn’t pocket change. It’s serious money that can cover a considerable part of the product development cost, hire key technical staff, or purchase necessary tools and equipment. The funding amount you seek should be a direct reflection of the actual needs of your project as well as your potential to provide matching funds.

The range of $35,000 to $45,000 is the most frequently requested amount by successful applicants. This range often presents the opportunity to provide funding for substantial projects, together with the matched funding requirement that is manageable for smaller businesses.

Understanding 1:1 Matched Funding

The matched funding requirement is straightforward but critical to understand. For every dollar the government provides, you must contribute one dollar of your own cash. This isn’t negotiable.

Here’s how it works in practice:

• Apply for $25,000 = You contribute $25,000 (Total project: $50,000)
• Apply for $40,000 = You contribute $40,000 (Total project: $80,000)
• Apply for $50,000 = You contribute $50,000 (Total project: $100,000)

The NSW government doesn’t allow in-kind contributions, additional grants, or anticipated future funding. Your contribution must be actual cash that you can access immediately. This means having the money in your business account or a signed investor agreement providing the funds.

You’ll need to prove you have this money available when you apply. BAs do the ones in formal investor agreements executed under NSW. The MVP program works on your bank statements from the last 30 days to be sure that you are really into and genuinely invested in the project.

Who Can Apply?

NSW Business Eligibility: Size and Revenue Limits

The MVP Ventures Program specifically targets smaller, innovative businesses that need support to grow. Your business must be based in NSW and meet strict size criteria designed to help emerging companies rather than established enterprises.

Revenue requirements: Your business cannot have exceeded $1 million in annual turnover for each of the past three financial years. This isn’t about your best year or average turnover. Each individual year must be under the $1 million threshold.

This requirement guarantees that the funding amount is allocated to the businesses that are in real need of financial support in making their innovations commercially viable. You will be required to prepare detailed financial statements evidencing that your company’s depreciation has not overtaken this figure if you are approaching the $1 million mark.

Staff size limits: You cannot have more than 20 full-time equivalent (FTE) employees. This includes contractors working regular hours, part-time staff calculated on an FTE basis, and anyone else on your payroll.

The 20 FTE limit keeps the program focused on smaller businesses where funding can make a real difference. Large teams typically indicate that a business has moved beyond the early commercialisation stage this program targets.

Other business requirements: Your business needs to tick several administrative boxes:

• Australian Business Number (ABN) – active and current
• Headquartered in NSW – your primary operations must be based here
• Non-tax exempt status – you must pay regular business taxes
• Australian bank account – for receiving funding
• Company incorporated in Australia or incorporated trustee
• Hold intellectual property or commercialisation rights for your product

If you’re currently a subsidiary, your parent company must also meet these criteria. International entities can apply if they satisfy requirements by the funding agreement date.

Eligible Projects and Industries

Your project must align with NSW Government priority industries outlined in the Industry Development Framework:

• Agriculture and agrifood
• Resources
• Defence and aerospace
• Clean energy and waste
• Medical and life sciences
• Digital systems and software
• International Education
• Visitor economy

The program also supports core enabling technologies like advanced manufacturing, biotechnologies, and digital technologies, including fintech.

Eligible project activities include:

• Prototyping and piloting studies
• Proving commercial viability to customers or investors
• Completing product development
• Demonstrating products in operational environments

Projects that don’t qualify:

• Basic research or technical experiments
• Products for internal use only
• Minor updates to existing products
• Activities already completed

What Costs Are Covered in the MVP Ventures Grants Program?

Funding for Development, Equipment, Staff, and IP Protection

The program funds non-recurring expenses directly related to development and commercialisation. Understanding what qualifies can help you budget effectively and maximise your funding impact.

Prototype development and materials: Direct prototyping costs are fully eligible. This includes the expenses incurred in acquiring the raw materials, components, and fabrication costs for building and testing your product. Material costs are the ones that you will face if you are making physical prototypes, developing software versions, or constructing proof-of-concept models.

The key requirement is that materials must be purchased specifically for your project. You can’t claim existing inventory or materials bought for other purposes.

Equipment purchases and hire: Equipment costs that can be identified explicitly as purchased or hired for your project activities are eligible. This might include specialised testing equipment, development tools, or machinery needed for prototype creation.

Equipment hire often makes more sense than purchasing for shorter projects. Both options are valid, but the equipment must be used exclusively for your MVP development work during the project period.

Staff salaries and wages: You can claim gross wages or salaries paid to founders, directors, leadership staff, and employees working directly on the project. This includes superannuation and other employment costs.

The critical requirement is that work can be specifically identified and measured as contributing to your project. General management or administrative work doesn’t qualify. You need clear timesheet records showing hours spent on eligible project activities.

Contractor and consultant fees also qualify when the work directly contributes to project delivery. This might include specialist technical advice, product design services, or development work you can’t handle internally.

Intellectual property costs: Patent filing costs for new IP developed during your project are eligible for up to $15,000 total project cost. This means you can claim up to $7,500 (50%) in grant funding for IP protection.

This is particularly valuable for innovative products where patent protection forms part of your commercialisation strategy. The timing matters, though – you can only claim costs incurred during the project period.

Other direct costs: Reasonable domestic travel costs up to $4,000 total project cost ($2,000 claimable) are eligible when travel is necessary for project progression. This might include travel for customer validation, supplier meetings, or testing activities.

Critical spending limits: No more than 20% of your total grant can go towards expenses incurred outside NSW. This keeps the economic benefit within the state while allowing some flexibility for interstate activities.

Costs that won’t be funded: The program is clear about what doesn’t qualify:

• General business expenses like rent, utilities, or administrative costs
• Marketing and promotional activities
• Software purchases or upgrades
• Insurance costs
• Activities completed before grant approval
• Routine operational expenses
• Capital expenditure for asset purchases

The primary reason for learning these differences is to plan your budget accurately and not to face the risks of disillusionment in assessing your project.

The Application Process of the MVP Ventures Grants Program

The MVP Ventures Program is a two-stage approach that comprises:

Expression of Interest (EOI)

Initially, you are to submit a short overview that includes:

• Innovation pitch (maximum 10 slides, 3-minute video, or 6-page document)
• Accountant declaration and financial statements
• Business canvas template

Detailed Application (Invitation Only)

If shortlisted, you’ll provide:

• Complete pitch deck
• Evidence of co-contribution
• Project information template
• Detailed budget with supporting quotes

Applications are assessed on innovation level, market demand, business feasibility, and potential NSW economic impact.

Strategic Alignment of MVP with R&D Tax Incentive

Here’s where things get interesting for your overall funding strategy. Many MVP development activities may also qualify for the R&D Tax Incentive, which can offset up to 43.5% of eligible research costs.

This creates powerful alignment opportunities:

• MVP funding supports the commercialisation and testing
• The R&D Tax Incentive covers development costs
• Both programs can work together without conflicts

The key is structuring your activities to maximise benefits from both programs while avoiding double-dipping.

Validation Requirements

Every project needs an Eligible Validating Entity to assess your product’s quality, functionality, and intended behaviours. Third-party validation is of prime importance in the establishment of trust and credibility with the assessment panel.

Then, begin to pinpoint possible validators in your plan initiation. Educational institutions, industry associations, and independent testing labs are typical organisations that provide this service.

Important Dates and Planning

Round 2 Status:

• Opened: 1 July 2024
• Closes: 5 pm AEDT, Friday, 28 February 2025 (or when funding is exhausted)

Round 3 Expected:

• Opening: 1 July 2025

Given the competitive nature and detailed documentation requirements, it is sensible to start your preparation at least three months before the round opens.

Making Your Application Competitive

Success often comes down to three factors: clarity, evidence, and timing.

• Clarity: Innovation should be stated clearly. Do not use special terms. Avoid saying how your product differs from others in the current market.
• Evidence: Strong market research, customer validation, and financial projections carry significant weight. Show real demand, not just assumed interest.
• Timing: Don’t rush your application. Quality documentation and thorough preparation typically outperform last-minute submissions.

Common Application Mistakes

Based on program patterns, applications often stumble on:

• Insufficient evidence of matched funding
• Weak market validation data
• Projects too early or too late in the TRL scale
• Poor budget documentation
• Missing validator agreements

Professional Support Options

While you can undoubtedly apply independently, many successful applicants work with specialist consultants who understand the program’s intricacies.

Professional support typically covers the following:

• Eligibility assessment
• EOI and detailed application development
• Financial documentation preparation
• Strategic alignment with other funding programs
• Submission timing optimisation

Ready to Apply for the MVP Ventures Grants Program?

If you have an innovative product at the prototype or market-ready stage, this program could provide the funding boost needed to achieve commercial success.

Start by honestly assessing your TRL level and gathering evidence of market demand. Then, work backward from the application deadline to plan your preparation timeline.

The competition is real, but so is the opportunity. Businesses in New South Wales (NSW) often secure MVP funding to convert promising prototypes into thriving and successful commercial products.

Next steps:

• Download the program guidelines
• Evaluate if you meet all criteria
• Begin gathering financial documentation
• Identify potential validating entities
• Prepare your innovation pitch

Need expert guidance? Book a free consultation with Pattens Group today to assess the compatibility of your project and develop a successful application strategy. Don’t let your innovation stall at the prototype stage. The MVP Ventures Program exists precisely to help businesses like yours make that crucial leap to market success.

Frequently Asked Questions (FAQs)