Australia’s Elcano Capital hits the fundraising trail

The Queensland-based investor is one of minority of Australian VCs firms - and the first in the state - to be registered with Innovation Australia to receive tax exemption under the Australian Venture Capital Act 2002.

"This is not for the institutional investors, such as the superannuation funds," a spokesman told The Cairns Post. "It's for the smaller players, who, as a rule, get small returns on their investments, which are then subject to taxation."

Investors into Elcano - which will operate as a venture capital management partnership - will be fully exempted from paying tax on the dividends and capital gains resulting from future exits under the early stage venture capital limited partnership program. For this reason, the firm is particularly targeting small-scale LPs whose finances tend to be managed by their accountants, solicitors or business advisers.

The program prohibits Elcano from investing in companies with property development, land ownership, finance or construction as their main focus. "Nor can they be listed on the stock exchange at the time of investment and their assets must not exceed $50 million," added Elcano chairman Graham Hart, who was formerly CEO of the Bank of Queensland.

 

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• Fundraising