| VCLP | ESVCLP | Angel Investment Tax Incentive Scheme | VC-As-A-Service | |
|---|---|---|---|---|
| Fund size | No upper limit | $200m VC Act s9-3(1)(d)(ii) | N/A | $200m |
| Investor limitations | Nil | Sophisticated investors if total ESIC investment over $50,000 p.a. | Sophisticated investors pre-AFSL All investors with AFSL |
|
| Min committed capital | $10m commitment to go unconditional registration | N/A | $10m commitment to go unconditional registration | |
| Vehicle Lifespan | Min 5 yrs – max 15 years – VC Act 9-1(1)(c) | Min 5 yrs – max 15 years – VC Act 9-3(1)(c) | N/A | Min 5 yrs – max 15 years |
| Min & max investment hold period | 12 months – 15 years | 12 months – 10 years | 12 months – 15 years | |
| Investor Limits | No limit | 30% of committed capital – VC Act 9-3(1)(e) | Non-sophisticated investors $50,000 p.a. | 30% of committed capital – VC Act 9-3(1)(e) |
| Investment Limit (per investee) | 30% of committed capital – ITAA 118-425(1)(d) | 20% of committed capital – ITAA 118-428(1)(c) | N/A | 20% of committed capital – ITAA 118-428(1)(c) |
| Investment Plan | Not required | Required – VC Act 9-3(1)(g) | Not required | Required |
| Max Investee Entry value | $250m – ITAA 118-440 | $50m – ITAA 118-440(9) | No max prescribed but esic test sets a very low valuation | $50m – ITAA 118-440(9) |
| Investment Divestment | Not required | Nil – VC Act 9-3(6) but tax benefits cease at $250 value | Nil | Nil – VC Act 9-3(6) but tax benefits cease at $250 value |
| Investor Directed/Alignment | No | No | Yes | Yes |
| Pooled Investment Risk | Full | Full | No | Minimised |
| Investment Entity Type | Venture (high risk) | Venture (high risk) | Venture (high risk) | Enterprise (low risk) to venture (high risk) |
| Investee listed at time of investment | No | No | No | |
| Invest in listed shares | Only if pre-listing shares are held. | No | Only if pre-listing shares are held. | |
| New or existing shares | New (+ existing with new holdings) | New | New (+ existing with new holdings) | |
| Eligible investments | ITAA s. 118-425 · At risk (1)(a) · Shares (1)(b) · Investee Australian resident (2) · Predominant activity (3) · Registered auditor (5) · Listed restrictions (7) · Ineligible activities (13) a) property development or land ownership; b) finance; i. banking; ii. providing capital; iii. leasing; iv. factoring; v. securitisation; c) insurance; d) construction; e) making investments | ITAA s. 118-425 · At risk (1)(a) · Shares (1)(b) · Investee Australian resident (2) · Predominant activity (3) · Registered auditor (5) · Listed restrictions (7) · Ineligible activities (13) a) property development or land ownership; b) finance; i. banking; ii. providing capital; iii. leasing; iv. factoring; v. securitisation; c) insurance; d) construction; e) making investments | Early stage innovation companies (esic) 1. Early stage test a. <$1m expenses in prior year b. <=$200,000 income prior year c. non-exchange 2. 100 point test a. 50% of income to R&D expenses b. Commercialisation grant c. accelerator program d. patents e. university co-development. | ITAA s. 118-425 · At risk (1)(a) · Shares (1)(b) · Investee Australian resident (2) · Predominant activity (3) · Registered auditor (5) · Listed restrictions (7) · Ineligible activities (13) a) property development or land ownership; b) finance; i. banking; ii. providing capital; iii. leasing; iv. factoring; v. securitisation; c) insurance; d) construction; · making investments |
| Tax Handling | ||||
| Income | Exempt | Payable | Exempt | |
| Capital Gain | Exempt | Exempt | Exempt | |
| Tax Offset | 10% of invested capital non-refundable carry forward ITAA97 s 61-765(1) | 20% of invested capital non-refundable carry forward but capped at $200,000 p.a. | 10% of invested capital non-refundable carry forward ITAA97 s 61-765(1) |
