Slow pickup in investor visa hurt venture capital
By Oksana Patron
A slowdown in significant investor visa (SII) processing times is leading to difficulties in funding for venture capital and emerging companies, in particular for those struggling to survive the post-COVID-19 recession, according to Atlas Advisors.
The concerns around the Business Innovation and Investment Program (BIIP) could be stalled beyond July, creating uncertainty and further funding constraints for organisations that were already on the brink.
“The Australian economy risks losing billions of dollars, jobs and future innovation if this occurs,” Atlas’ executive chair, Guy Hedley, said.
“These are startups and emerging companies that have the prospects of becoming global leaders in health, technology, agribusiness and manufacturing but are now on the verge of collapse.”
According to Hedley, priority should be given to higher net worth migrant applicants to SII, Investor Visa and Premium Investor Visa programs that would bring substantially greater investment and longer-term benefits to the Australian economy.
“The current cap on BIIP applications means Australia’s economy has closed itself off from millions of dollars that could assist our recovery,” he said.
Additionally, this could also offset the serious ramifications of an expected 85% fall in migration in the 2020/21 financial year compared to 2019/20.
By comparison, it took up to six months to process applications in 2015 while currently it takes up to two years, the firm said.
AUTHOR
Oksana Patron
Recommended for you
Retailisation of private markets such as evergreen funds may seem like appealing options for wholesale and retail investors, but providers risk undermining trust if their products are unclear.
Ethical investment manager Australian Ethical has seen its funds under management rise by a third over FY25 to close out the year at $13.9 billion.
BlackRock Australia’s head of intermediary distribution James Waterworth has taken up a new distribution role at an alternative asset manager, while Antipodes has hired a distribution director.
BlackRock’s iShares ETFs have reported a record first half for inflows, gaining US$192 billion in the past six months, to see overall ETF assets under management rise to US$4.7 trillion as it launches its first active ETF in Australia.
