VCs, angels call for qualifying exams — not bank balances — to decide 'sophisticated' investor status
The startup ecosystem is freaking out about the Albanese government’s plans to significantly lift the financial thresholds allowing retail investors to back startups.
Angel syndicate leads and VCs are furious about the Albanese government’s plans to increase the “sophisticated investor” threshold, warning the changes will have a devastating effect on the early stage Australian startup ecosystem.
Key members of the ecosystem told Capital Brief in no uncertain terms that they were deeply concerned by the floated proposal, saying it would have a “chilling effect” on the startup industry, set Australia back globally and wipe out parts of the sector poised to be one of the biggest contributors to economic growth over the next decade.
“If the proposal goes ahead it’s not just like not just the startup ecosystem, but like the whole managed investment schemes economy that would collapse,” Aussie Angels CEO Cheryl Mack told Capital Brief.
Mack, along with many others in the ecosystem, have spent years building Angel networks and syndicates to create a robust early stage investment pipeline for Australian startups that relies on the participation of sophisticated investors.
