Feast or famine? Does ESIC status = Investment?

2017-11-21 13:04:53

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We've had a series of enquires regarding the uptake of investments that meet the ESIC requirement, so what's my take on this?

- It seems that investors are finding ESIC an extra, rather than a purpose to invest*
- An investment friendly startup might close the round quicker or at an improved valuation**
- Investment doesn't happen just because of ESIC eligibility

This might not be the full story as we do not offer a matching service, only a transparent tracking service. *It may also be due to the fact that ESIC status remains unclear due to ambiguities regarding the application of the law (and or delay in ATO Private Rulings).

So far, most of the investors involved in closed rounds never engage us, so we are typically dealing with the founders, accountants and lawyers, perhaps the lead investor of a prior round.  This may change as we cross the line into the 2018 tax year and the investors & companies are in a position to claim the offset.

In may ways its still early days for ESIC, 

​Cheers,

Tom 

 

Published By: Tom

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