Startups win Treasury submission extension amid sophisticated investor backlash
The startup sector has won a small reprieve in its battle against changes to the sophisticated investor thresholds.
The federal Treasury department has agreed to consider a late submission from the startup industry to its now closed public review over contentious changes to the sophisticated investor designation which have been widely condemned by venture capital funds and founders.
The government launched a review of the regulatory framework for managed investment schemes last year in the wake of a number of collapses, mostly related to the property sector and targeting at self-managed super funds.
A consultation period over changes to the Wholesale Investor Criteria and Investment Schemes was held between 4 August to 29 September 2023. But many in the startup sector weren’t aware of the review, or the broader impact it could have on the "sophisticated investor" qualification, which allows individuals to deploy money into riskier ventures including startups.
Only 58 submissions to the review were received, and none from major startup organisations.
