The accelerator has launched a seed fund helmed by the former program manager of a University of Sydney-run innovation program.

Australia-based accelerator Galileo has secured A$10m ($7.3m) from investors including an unnamed university for its inaugural seed fund.

The LPs also include seed-stage VC fund Artesian and undisclosed private investors, according to the Australian Financial Review (AFR), which also reported the undisclosed university as a backer.

AFR said the $7.3m sum marked an initial close representing half of the fund’s overall target.

Galileo Venture Fund will back more than 40 startups over the next three years from Galileo’s accelerator, which primarily targets graduates from Australia and New Zealand-based universities.

The accelerator’s first batch will begin next month with each participant receiving $147,000 from the fund with potential for follow-on investment, in addition to mentoring and contacts from Galileo’s founders’ network.

Galileo Venture Fund was co-founded by its general partner James Alexander, who previously helped establish University of Sydney startup accelerator Incubate.

Alexander told AFR: “A big part of why we started this was because we saw untapped talent in university entrepreneurs coming out of the programs.

“Our sweet spot is … focusing on the period where you are too early for most traditional VCs, but further along than needing [grant money].

“We have the ability to do follow-ons … but a big chunk of our success will be whether or not our companies are able to get outside investment after we invest. That will be a big success metric of the program.”