Tax free sounds scary. Brings back memories of Paul Hogan and getting "beached"..
"Fully Franked" is perhaps a better term. Apart from that, one would have to think that some sort of combined tech development fund would have to have some merit. As I'm just not aware of one at the moment. One category addition I would also suggest is computer games. They are a good bread and butter cash generators and Australians (correct me if I am wrong) are pretty reasonable at making them. Maybe Games/Web/Robotics might be a good mix.. Regards David On Mon, Jan 17, 2011 at 7:48 AM, [email protected] <[email protected]>wrote: > Dear SBA, > > I have been thinking about how to create a Tax Free Income Fund and I > would like some feed-back. > > By creating an Early Stage Venture Capital Limited Partnership > (ESVCLP) offers the the possibility of matching funding from the > government and a significant tax breaks. By combining high yielding > debt / preference shares can you 'wash' the tax liability? > > Eg Theoretical Portfoilo > > $10 Million total > > $1 Million - into Startmate / YCombinator-type startups > $5 Million into high yield debt - over 20% pa > $2 Million into Credit Union preference shares - return up to 8% full > franked > $2 Million into unlisted mining companies > > > Expected value of the portfolio $10 Million > > Web startups: Zero or ($10 Million if we win the lottery) > High Yield debt: $7 Million > Credit Union Shares: $2 Million > Unlisted mining companies: $1 Million or ($30 Million if we win the > lottery again) > > In Australia, Venture Capital as an asset-class destroys lots of > money.The track record is appalling. > > From AusIndustry website: "Fund managers seeking to raise a new > venture capital fund of at least $10 million and not more than $100 > million for investing in Australian businesses may be eligible for > ESVCLP registration. > > Registration entitles a fund to flow-through tax treatment and its > investors (whether resident or non-resident) receive a complete tax > exemption on their share of the fund's income (both revenue and > capital). > > Australian businesses with assets of less than $50 million may be able > to access capital from funds registered under this program if their > primary activity is not finance or property development." > > A quick summary of the rules are no investment may exceed 20% of the > fund, ie minimum of 5 investments. Every so often, the government > grants dollar for dollar matching of investments funds. Minimum size > of fund $10 Million etc. > > It takes about a year and about $100K to establish a ESVCLP. > > The ESVCLP was never designed for Income funds and I know that > AusIndustry will whine but if I stay within the guideline I can create > an innovative funding vehicle for new ventures. > > > Any thoughts / comments? > > Richard Hayes > > > > -- > You received this message because you are subscribed to the Silicon Beach > Australia mailing list. > > Guidelines on discussion: > http://groups.google.com/group/silicon-beach-australia/msg/351e183e1303508d?hl=en%3Fhl%3Den > > No lurkers! It is expected that you introduce yourself. > > To post to this group, send email to > [email protected] > To unsubscribe from this group, send email to > [email protected]<silicon-beach-australia%[email protected]> > For more options, visit this group at > http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en > -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Guidelines on discussion: http://groups.google.com/group/silicon-beach-australia/msg/351e183e1303508d?hl=en%3Fhl%3Den No lurkers! It is expected that you introduce yourself. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
