Another quick clarification These funds are INVESTMENT funds, not grant money and definitely not free by any stretch of the imagination.
The IIF program has been around for about 10 years. Many of e best known VC funds in Oz started with a IIF. And it is $20m in matching investment money. If the fund makes a return from investment the Government gets it's money back plus a benchmark return, plus a portion of any return above the benchmark. Just search for IIF AusIndustry in google to get details. Regards Matt On Jan 18, 8:40 pm, David Lyon <[email protected]> wrote: > There was definitely nothing like this ten years ago to my knowledge. > > If I am not mistaken this means that if a VC has $10M then the govt > gives them another $10M and doubles their money. Its money for free > (almost) for them. > > Therefore, tech startups can actually ask the VC for money that is > actually'free' money. > > wow - what a great system. > > I also notice that yuwwa has a computer-vision project underway > which fits into my earlier robotics-tech class. I think there is a good > market in the future for tech that could identify shoplifters in a shop. > Im not sure if that is what their startup is doing - but its a good space > to be in. > > If there is a problem in Australian tech, I think it would be getting > solid bread and butter generating tech business plans up. If the ~2000 > techies that leave Australia each month knew about this, I think they > would have second thoughts about leaving. > > Anywone know the Sydney based VCs that are on the program > and have these Government donations in their funds?On Tue, Jan 18, 2011 at > 10:42 PM, Matt <[email protected]> wrote: > > > I am based in Perth but will try to attend a SB drinks sometime when I > > visit Sydney next. > > > Hard to share as much experience in the forum as can be done over a > > drink :) > > > But there are plenty in here with better knowledge than I. > > > Back to my holidays! > > > Matt > > > On Jan 18, 6:36 am, David Lyon <[email protected]> > > wrote: > > > Hi Matt, > > > > Actually it's really nice to have your expertise in on the discussion. > > > > If somebody corrects our misconceptions - it's only a good thing. > > > > Sure, some of the highly opinionated of us have their own idea's > > > about what to do to get over the (australian) tech startup hump. > > > > Do you care to share any opinions ? > > > > (given that this is mainly a drinking and socialising group - your > > > comments will remain firmly attached to the gossip tree - lol)On Tue, Jan > > 18, 2011 at 1:54 AM, Matt <[email protected]> wrote: > > > > I think a little mor research would be good. > > > > > ESVCLP is tax free for distributions, but the are a lot of rules as to > > > > how you may invest. > > > > > The IIF program provides dollar for dollar matching funding and is > > > > often accessed (these days) by organizations which have either an > > > > ESVCLP or a VCLP structure. There are considerably more restrictions > > > > on the type of investments that can be made when you are running under > > > > the IIF program. > > > > > At Yuuwa we are running a VCLP and were successful in our bid to have > > > > IIF matching funding. > > > > > Some of the rules for the IIF include: > > > > > No mining investments > > > > No high yield debt instruments > > > > No listed company stock > > > > > There are a lot of others. Basically you need to be investing in > > > > Australian based technology related startups (and yes the technology > > > > can serve the mining sector for those wondering) > > > > > I will not comment on past VC performance, I do agree that the stats > > > > from Australia are pretty poor overall. We have only been active for > > > > just over 1 year. 3 announced deals and 1 to be announced when I get > > > > back from leave. > > > > > Could not resist responding to this thread although I a typically > > > > quiet on this forum :) > > > > > All the best > > > > Matt > > > > > On Jan 16, 9:48 pm, "[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/351e183e13. > > .. > > > > > 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-australi > > > > a%[email protected]><silicon-beach-australi > > a%[email protected] <a%[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/351e183e13... > > > 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-australi > > a%[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
