What is Venture Capital?
Venture capital is capital provided by private investors (the venture capitalists) or financial institutions for new or expanding businesses. It is usually associated with high growth and high risk potential technology industries namely medical research, biotechnology, information technology of new software development and property development. Migrants intending to apply for the State Nominated Venture Capital Entrepreneur (Permanent) visa (subclass 132B) must have secured AUD1million in venture capital funding from a member of the Australia Venture Capital Association Limited (AVCAL) to fund the start up or product commercialisation of a high value business idea in Australia.
Venture capital investment is usually characterised by the following key features:
Control: Through the investment of capital in exchange for a considerable stake in the venture capital company;
Expertise: Through investing management, marketing, finance and strategic direction expertise in the venture capital company;
Protection of interests: Through exercising some control through mechanisms such as board representation or management agreements, venture capital investors seek to protect and grow their investment; and
Performance: The protection of interests and the ability to add value to a venture capital company (through capital investment and expertise) may result in higher returns.
Listing of some venture capital investment options for people who are interested in Business Talent (132 Visa) under Venture Capital Entrepreneur Stream. They are structured to conform to the AVCAL guidelines with a view to being able to qualify for various Australian Business migration visa :
- Property Investment in Perth
This is a passive investments but to assist in returns and in most cases migration, the investment company will arrange development opportunities for you.
– Mainly apartment blocks of 10 to 60 apartments. The returns are generally 20+% with a time frame of just over one year to just under two years
– Land subdivision
– In fill residential housing
2. Future Venture Capital Offer (FVCO)
The FVCO offers a broad range of investment opportunities identified, researched and scrutinised by the Responsible Entity and the Investment Manager. The focus of FVCO is on achieving consistency of returns and capital preservation (although this cannot be guaranteed).
In order to achieve this objective, the Responsible Entity and the Investment Manager will adhere to the FVCO Venture Capital Investment strategy which, in short, seeks to identify a diverse range of investment opportunities and attempts to mitigate the risks associated with investing in venture capital companies.
The venture capital investment will be managed by FVCO and create and develop new and innovative products and services. Australian entrepreneurs and innovative businesses (in various stages of development) are in need of capital and business mentoring and that the FVCO is an opportunity to provide much needed capital investment and managerial expertise to Australian venture capital companies.