Publicly supported VC fund needed
The Institute of Public Accountants (IPA) has called on the Government to introduce a publicly supported venture capital (VC) fund to improve the entrepreneurial environment in Australia.
IPA said funding VC would also act as a catalyst in identifying and overcoming hurdles to successful and profitable investment.
IPA chief executive, Andrew Conway, said: ““The VC fund could be established by either providing a significant proportion of funds to assist VC managers to attract other institutional investors to publicly supported VC funds or by becoming an institutional investor in a range of individual VC funds”.
“Many young firms face funding problems, particularly in uncertain technological or new knowledge environments because of their unattractiveness to bank lenders,” he said.
Conway said it was a lost opportunity to the economy when innovative firms with high commercial potential were constrained by the absence of external finance.
“Any government with a strong commitment to economic growth via research and development and investment which facilitates greater enterprise and innovation activity must ensure that early-stage venture capital finance remains available to high potential, young firms,” he said.
“Otherwise, we risk a reduction in new commercialisation opportunities stemming from national investments in science and technology.”
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