Innovyz venture fund 1, ILP ESVCLP
What is an ESVCLP?*
An Early Stage Venture Capital Limited Partnership (ESVCLP) is an investment vehicle that receives significant tax concessions in exchange for investors investing early stage companies (pre-seed, seed, start-up and early expansion stage) that are bringing new technology or innovation to market.
There are strict conditions on the type of company that an unconditionally registered ESVCLP can invest into. In exchange, investors will be entitled to a non-refundable carry forward tax offset equal to 10% of the amount of capital invested. Subject to certain conditions, an investor’s share of capital gains and losses arising in relation to the investment is exempt from income tax.
You can find out more about the tax treatment of ESVCLPs below.
*Any taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and our interpretation. Your individual situation may differ and you should seek independent professional tax advice.
How will the fund invest?
The Innovyz Venture Fund 1 (Fund) will work closely with Innovyz Institute (Innovyz’s operational arm) to search Australian and New Zealand universities and research institutions like CSIRO, to find the best Advanced Materials & Manufacturing research.
Innovyz Institute then brings this research through the Innovyz Commercialisation Process. During this process, Innovyz Institute creates a new corporate entity to commercialise the research. The Fund will then directly invest in these new corporate entities which are early stage companies. These early stage companies are assisted by Innovyz to grow rapidly in both Australia and overseas, and as they grow the fund may make follow-on investments.
How to participate in the Fund?
To participate in the Fund, please obtain an Information Memorandum from Innovyz Capital Management by completing the Application Form available here.
Can I co-invest in the companies Innovyz has created through the Innovyz Commercialisation Process and which the Fund has invested in?
From time to time, co-investment opportunities will arise and the Fund will offer Limited Partners (i.e. existing Fund investors) the opportunity to invest alongside the Fund. However, by doing so you may not be eligible for the tax concessions described above in relation to investors in an unconditionally registered ESVCLP.