South Australia set to close government-backed start-up investor Playford Capital

South Australia's Science and Information Economy Minister Jack Snelling said Playford will be closed by the end of 2012, adding that, "We think that government having equity in start-ups is not the best way that government can assist companies." Based in Adelaide, the fund was launched in 1997 with the aim of proving seed funding to start-up and early-stage companies with revenue up to A$5 million ($4.95 million), targeting firms focused on information technology, life sciences and clean technology. Although Playford just last month announced it had invested A$100 million ($99 million) in start-ups - of which approximately 20% was funded by the firm itself and 80% from co-investors - Snelling said that Playford's capacity could be otherwise fulfilled by other organizations, such as the South Australia Life Sciences Advancement Fund and the Trans Tasman Commercialisation Fund.

Playford Capital's portfolio includes search engine marketing specialist E-channel; power-saving firm Embertec; and ultrasound provider Signostics. Its average investment size is A$1.2 million ($1.19 million) paid in stages, according to Plyford's website. The fund costs approximately A$1.7 million ($1.68 million) a year to operate, Snelling added.

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