The Australian government has confirmed the proposed changes to their Significant Investor Visa (SIV) investment framework. These changes are aimed at increasing the flow of funds into venture capital and small capitalisation, listed equities. The new rules come into effect on 1st July 2015.
According to an announcement from Austrade made on 15th May 2015 ( Austrade announcement ), 10% of the $5 million investment required for a visa would have to be invested in venture capital or growth private equity funds. These funds must be invested in early stage venture capital limited partnerships (ESVCLPs) or venture capital limited partnerships (VCLPs).
Between 24th November 2012 and 31st March 2015, there were 751 primary significant investor visas granted, according to Department of Immigration and Border Protection statistics. This equates to around 330 SIVs per annum, with these visas requiring a minimum investment of over $1.5 billion per annum over that time period. Assuming this rate is unchanged after the introduction of the new rules, we can expect around $150 million of annual investment into ESVCLPs and VCLPs.
If you are seeking funds for your growing business, we may be able to help access this new source of funds. Toro generally require that a business is already operating, has a proven revenue stream of at least $3 million p.a. and a talented management team before we are able to assist.
During our assessment for suitability, Toro will conduct an assessment of your business plan, financial model, and capabilities of the business. We will also analyse external factors such as market conditions, competitive positioning, and barriers to entry.