Australia drafts new rules for VC investor visa scheme

Under the proposed changes, offshore investors would have to allocate to venture capital funds a minimum of 20%, or A$1 million ($770,000), of the aggregate A$5 million investment that is required to qualify for Australian permanent residency after four years.

Yasser El-Ansary, CEO of the Australian Private Equity & Venture Capital Association (AVCAL), endorsed the move and stressed the "significant" role VC fund managers play in developing an innovative and entrepreneurial economy.

"Every year, venture capital managers meet with thousands of business founders who are looking for access to the capital and skills and experience that venture capital can bring," said El-Ansary in a statement. "A very small fraction of those founders are able to be backed by the industry at the moment, because there is a constraint on the availability of capital in this area of our economy."

Around A$120 million was committed to venture capital funds last year, while these funds invested A$516 million into 93 businesses, according to AVCAL.

The SIV scheme, which was launched in 2012, offers permanent residency to those who invest A$5 million domestically. Nearly 1,500 applications have been approved since its launch, with Chinese investors making up 90% of successful applicants, according to Department of Immigration and Border Protection data.

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• Topics
• Australasia
• Venture
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• Fundraising
• Australia
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