Venture capital programs

About the programs

Venture capital (VC) programs provide tax incentives and funding to stimulate investment in innovative Australian businesses.

This drives jobs and innovation by incentivising investment in the application and commercialisation of new ideas. 

Venture capital programs include: 

• Early Stage Venture Capital Limited Partnerships
• Venture Capital Limited Partnerships 
• Australian Venture Capital Fund of Funds
• Biomedical Translation Fund.

These programs support venture capital fund managers, investors and innovative Australian businesses.

Early Stage Venture Capital Limited Partnerships (ESVCLP)

The ESVCLP program aims to stimulate Australia’s early stage venture capital sector. 

It provides fund managers and investors with support and tax incentives to help stimulate early stage venture capital investments.

The program:

• helps fund managers attract pooled capital, so they can raise new venture capital funds of between $10 million and $200 million to invest in innovative early stage businesses
• offers tax benefits to fund managers and investors
• connects investors with early stage businesses
• helps Australian businesses grow by receiving financial support and guidance from expert advisers. 

Investments by registered ESVCLPs are limited to early stage businesses.

Our department and the Australian Taxation Office (ATO) jointly administer this program for the government.

Venture Capital Limited Partnerships (VCLP)

The VCLP program aims to stimulate Australia’s venture capital sector. 

The program offers tax benefits to fund managers and eligible foreign investors to help stimulate venture capital investment. 

The program:

• helps fund managers attract pooled capital, so they can raise new venture capital funds of over $10 million to invest in innovative Australian businesses
• offers tax benefits to fund managers and eligible foreign investors
• connects investors with innovative Australian businesses
• helps Australian businesses grow by receiving financial support. 

Our department and the ATO jointly administer the program for the government.

Australian Venture Capital Fund of Funds (AFOF)

The AFOF program aims to stimulate Australia’s venture capital sector. 

It provides tax incentives to fund managers and eligible foreign investors who invest into portfolios of VCLPs and ESVCLPs. 

The program:

• helps fund managers attract pooled capital, so they can raise new venture capital funds to invest into innovative Australian businesses
• offers tax benefits to fund managers and eligible foreign investors
• connects investors with innovative Australian businesses
• helps Australian businesses grow by receiving financial support. 

Our department and the ATO jointly administer the program for the government.

Biomedical Translation Fund (BTF)

The BTF is an equity co-investment program for the commercialisation of findings from biomedical research. Government investment is matched with private investment through 3 licensed private sector fund managers. 

The 3 funds invest in businesses working to commercialise biomedical advances that either: 

• have a majority of their employees and assets in Australia 
• plan to use the whole of the initial investment within Australia.

The Australian government Department of Health, Disability and Ageing has administrative responsibility for the BTF. Our department delivers the program for them.