Startup sector makes its case against 'sophisticated investor' changes — with one big concession
Submissions to the government's review of managed investment schemes, which could affect 'sophisticated investor' qualifications, have been made public. The startup sector is not holding back.
A host of Australia's top angel investors have formally cautioned the government against lifting the financial thresholds required to qualify as a 'sophisticated investor' who is allowed to invest in riskier assets such as startups.
And some are even suggesting the financial thresholds are actually lowered, in exchange for the family home being excluded in relevant asset tests.
Alarm bells went off in the startup sector earlier this year when it was reported in the Australian Financial Review that the government was planning to lift "sophisticated investor" thresholds from $2.5 million in net assets to $4.5 million, or from $250,000 in gross income to $500,000.
While the report sent the startup sector into a frenzy, Capital Brief later established that formal recommendations were still yet to be made by Treasury to government.
