Venture to benefit from Australia investor visa reforms

The SIV program is designed to attract overseas investment and provide a streamlined pathway to permanent residence in Australia for business people. Individuals become eligible after four years' residency, conditional on deploying at least A$5 million ($4 million) into approved assets such as government bonds and managed funds or into a direct equity stake in a domestic company.

From July 1, a minimum A$500,000 of this A$5 million must be committed to a venture capital or growth private equity fund. The threshold is expected to climb to A$1 million over the next two years.

"The mandating of investments into venture capital and growth private equity funds under the new program will enable SIV applicants to invest across the risk spectrum, from early stage ventures through to more established businesses needing capital to fund their next growth phase," said Yasser El-Ansary, CEO of the Australian Private Equity & Venture Capital Association (AVCAL), in a statement.

According to AVCJ Research, two Australia-focused venture capital funds raised $109 million between them in 2014, compared to A$276 million for six funds in 2013. Seed and early-stage investment came to $241 million last year, up from $80.4 million in 2013.

The SIV program, which was launched in 2012, had received 1,679 applications and granted 751 visas as of March 2015. Chinese investors account for nearly 90% of successful applicants, Department of Immigration & Border Protection data show.

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• Topics
• Venture
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• Australasia
• Early-stage
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• Australia
• regulation
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