The changes to the Business Innovation and Investment Program will nurture more early and seed stage start-ups in Australia.
Executive Chairman of Atlas Advisors Australia Guy Hedley said the changes would have significant and positive effects on Australian business and the economy.
The government’s changes include a revamp of the Significant Investor Visa and Investor Visa programs under which wealthy applicants can migrate to Australia while committing significant funds to the growth of our economy.
The complying investment framework has been revised with an increase in the allocation of investment towards venture capital from 10 per cent to 20 per cent and a further 30 per cent to emerging small cap listed companies.
“The government has listened to calls by Atlas Advisors Australia for an increase in allocated funds towards venture capital,” Hedley said in a media statement.
“These changes will be key to Australia’s competitiveness in attracting wealth and investment from prominent businesspeople in Hong Kong and other destinations.
“Wealthy and highly experienced migrant businesspeople are keen to provide the investment and expertise Australia needs to help build local businesses, industries and employment.”
Hedley said while later stage venture capital appeared to be performing soundly, seed stage venture capital was struggling for survival.
Statistics show the number of seed-stage funding deals in Australia have declined from around AUD$320 million in 2016-17 to AUD $120 million in 2018-19.
“These changes mean ailing startups can look forward to a renewed future and the possibility of attracting serious investment and expertise to help them drive growth and innovation,” Hedley said.
“Combined with the fast-tracking of 5000 people a year for permanent residency under the Global Talent and Temporary Activity visa, these changes will create better incentives to attract people with unique expertise and experience to Australia.”