NSW has launched a new commercialisation fund targeting the funding gap that stops promising startups from scaling. Applications close 29 April.
What’s happening: The NSW Government has launched the $20 million Emerging Technologies Commercialisation Fund, with applications now open until 29 April 2026.
Why this matters: The fund directly targets what is commonly described as the valley of death in startup funding, the stage where technologies have early validation but still lack the capital to become investable, scalable businesses.
The NSW Government has opened applications for a new $20 million grants program aimed at helping deep tech startups cross the gap between early-stage research and commercial deployment.
The Emerging Technologies Commercialisation Fund, part of the NSW Innovation Blueprint and a broader $79.2 million state commitment to innovation, offers grants of between $500,000 and $2 million per entity. Applications are open now and close at 10am AEST on 29 April 2026.
What the fund covers
The program targets companies working at Technology Readiness Levels 3 to 7, covering technologies that have moved beyond initial research but still require development before attracting large-scale private investment. Funded projects must typically be completed within two years.
Eligible activities include progression of physical prototypes or biological proofs of concept, technical development and testing to advance readiness levels, refinement of manufacturing processes, and validation of the technology in relevant environments. Activities that have already received funding from other grant programs are not eligible.
Priority sectors include housing and construction innovation, net zero and energy transition, local manufacturing, and biosciences and physical sciences, all areas identified as strategic priorities under the NSW Innovation Blueprint.
The fund replaces two earlier programs, the Biosciences Fund and the Physical Sciences Fund, which together provided around $10 million in support since 2019 and 2023 respectively, consolidating both under a single streamlined commercialisation pathway.
Who can apply
To be eligible, businesses must be for-profit, non-listed Australian companies headquartered in NSW with an active ABN. As of 1 January 2026, more than 65 per cent of full-time equivalent employees must be based within NSW.
Annual revenue must have been less than $2.5 million in the 2024 to 2025 financial year. Companies must also own their intellectual property outright or hold an exclusive licence to commercialise it in both Australia and globally, and must not be a subsidiary of another company.
Applicants are required to co-contribute, meaning they must demonstrate the ability to fund any project costs not covered by the grant through matched funding or sufficient existing capital. Grants are repayable once a company’s earnings before tax exceed $500,000, and at least 65 per cent of the funding must be spent within NSW.
The ETCF uses a two-stage competitive assessment process led by the NSW Office of the Chief Scientist and Engineer. The first stage requires a preliminary application including a five-minute video pitch and high-level project details. Shortlisted applicants are then invited to submit a full application, which requires detailed financial statements, intellectual property documentation and a technical roadmap.
Assessment criteria cover four areas: how well the project aligns with program objectives and priority sectors, the quality and feasibility of the technology, the pathway to market and ability to attract future private investment, and the applicant’s resources, management structure and track record.
Full applications are due in July 2026, with interviews of applicants scheduled for September if required and successful applicants expected to be notified in October 2026.
For founders preparing to apply, a few practical considerations are worth noting. Applications outside the TRL 3 to 7 range are frequently deemed ineligible, so confirming your technology sits within that window before starting is essential. The five-minute video pitch is the first impression assessors receive, and should focus clearly on the problem the technology solves and why now is the right moment to commercialise it.
Applicants should also ensure their capitalisation table and organisation chart are current before beginning the application, and be prepared to demonstrate clearly that project costs are reasonable and that the grant is genuinely necessary for the project to proceed at scale in NSW.
Full program guidelines and the application form are available through the NSW Office of the Chief Scientist and Engineer.
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