Early stage, high growth Australian companies are set to receive a $200 million shot in the arm after the Federal Government announced three new venture capital funds will share in Government funding.

Federal Minister for Innovation, Greg Combet, announced the three new funds selected under the first tranche of the Innovation Investment Fund (IIF), a Government investment vehicle for providing small and medium sized enterprises with access to venture capital.

Mr Combet said that $100 million of Government funding would be matched dollar for dollar by private sector investors in Carnegie Venture Capital Pty Ltd ($40 million), and GBS Venture Partners Pty Ltd and Innovation Capital Associates Pty Ltd ($30 million each).

"This is a huge boost for Australian start-ups," Mr Combet said. "These funds will invest at least $200 million of new capital in start-up businesses."

"The IIF continues to commercialise leading Australian research to produce new technologies, products and services that will be sold around the globe.

"These new fund managers will provide crucial equity capital and essential management expertise to a whole range of promising companies across the economy.

"Venture capital helps turn ideas into successful businesses and new jobs. It is a vital part of our innovation system which is why the Government, as part of its Plan for Australian Jobs, has announced a new $350 million round of the IIF Program.

"Successful start-ups are essential to creating new products, jobs and economic growth. The IIF will continue to co-invest government capital with private investor capital into early-stage Australian technology based companies."