A new online platform – ESIC Hub – is the first in Australia for high net worth investors and early-stage companies seeking to secure hundreds of thousands of dollars in new tax relief and funding.
From this month, high net worth and sophisticated investors, including SMSFs, are eligible for new tax incentives of up to $200,000 a year when they invest in an early-stage investment.
However, under new legislation, the company seeking the funding must qualify as an “ESIC” or “Early Stage Innovation Company”, or the investor will miss out.
ESIC Hub founder Stephen Crowe, who has advised multi-national and Australian firms for more than 30 years, says capital will start to shift to ESICs as an investment vehicle of choice for entrepreneurs, innovators, researchers and investors.
“ESIC Hub will connect serious startups 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.
“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. To qualify for the tax savings, investors need to obtain a qualifying ESIC certificate issued by an appropriately qualified, independent tax expert, such as through ESIC Hub, at the time of investment.
“Given the flow of money for early-stage companies will increasingly go to tax-incentivised ESICs, early-stage companies must know whether they are an ESIC and investors must be able to spot one.
“ESIC Hub will accelerate the process for both parties and avoid time wasting on an incorrect match.”
Source: ESIC Hub