Angel investors and venture capital firms are warning that proposed changes that will make it harder to qualify as a “sophisticated” investor will reduce funding for early-stage startups at a time when investment is already difficult to come by.
The proposal also threatens to counteract the Albanese government’s recent efforts to help bridge the valley of death through new early-stage commercialisation initiatives, by forcing startups to look outside of Australia for funding.
As reported by the Australian Financial Review last week, the government is poised to raise the asset test for sophisticated investor to account for more than two decades of inflation and legislate future periodic increases.
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