Venture capital the term used when shareholders buy part of a company. The shareholders usually place money in a company that is high risk and has a high growth. The investor expects an increased return on his money either when the company is sold or when the company lists on a stock exchange and sells shares in the company to the public.
There are three different types of venture capital investment. Early stage financing or seed financing, start-up financing and first stage financing. Seed financing refers to a small amount of venture capital given to an entrepreneur or inventor who wishes to start a business. It may be used to build a management team, for market research or to develop a business plan.
Grants often require matching funds so, in some instances, the opportunity to attract investors is important.
The aim of the Venture Capital Limited Partnership program is to increase foreign investment in Australian venture capital sector. Fund managers seeking to raise a new venture capital fund of at least $10 million for investing in Australian businesses with assets of up to $250 million may be eligible for VCLP registration.
Registration as a Venture Capital Limited Partnership entitles a fund to flow-through taxation treatment. Further, eligible foreign investors in the fund are exempt from capital gains tax on their share of any profits made by the fund. The manager is entitled to claim their carried interest in the fund on capital account rather than revenue.
Pattens Group is an accredited sponsor of the Australian Small Scale Offerings Board (ASSOB) which is Australia’s largest capital raising platform for high-growth, unlisted companies with over $150M raised to date.
ASSOB uses many of the techniques used by stock exchange listed companies to enable unlisted companies to raise between $250K and $5M in equity capital via the ASSOB Primary Board. It is unique to Australia and is rapidly becoming known as one of the most innovative capital-raising platforms in the world. ASSOB delivers it services via accredited ASSOB sponsors, including Pattens, that work with growing companies and facilitate their listing onto the ASSOB Platform.
The Australian government grant programs are always being changed and updated so it can be difficult for a busy business manager to keep track of what is available. The professionals at Pattens Group are familiar with all of the 700+ grants that are currently being offered and what it takes for an application to be successful. Let us share our 30+ years of experience with you when we find a government grant for your business. Contact us today for a free no-obligation consultation.