Following the introduction of new tax incentives, this month has seen the launch of an online platform designed to connect early-stage start-ups with high-net-worth investors.
ESIC Hub said in a statement that its platform can help these companies and investors “avoid time-wasting” and take advantage of the new tax rules.
As of 1 July 2016, Australians who invest in qualifying early-stage innovation companies (ESICs) are eligible for tax incentives so long as they can prove they are sophisticated investors.
Under the new rules, qualifying investors in ESICs will receive a 20 per cent non-refundable carry-forward tax offset on investment, capped at $200,000 per investor per year, and a 10-year capital gains tax exemption for qualifying investments held for at least 12 months.
ESIC Hub founder Stephen Crowe predicted capital will start to shift to ESICs as an investment vehicle of choice for entrepreneurs, innovators, researchers and investors as a result of the new tax incentive.
"ESIC Hub will connect serious start-ups and investors and deliver the solutions they need. It is an independent connector and validator for early-stage businesses, investors and their advisers, so that they can move to their negotiations with confidence," Mr Crowe said.
"These new incentives mean early-stage companies wanting capital must tick the right boxes in terms of their structure, and investors must fund early-stage companies with their eyes wide open," he said.
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