Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Slow pickup in investor visa hurt venture capital

atlas-advisors/venture-capital/Guy-hedley/

30 June 2020
| By Oksana Patron |
image
image image
expand image

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. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 weeks 3 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

3 weeks 3 days ago

So we are now underwriting criminal scams?...

6 months 4 weeks ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

2 weeks 5 days ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 2 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

4 days 13 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
3