Policy

Updated: 29-12-2009

The AAAI continues to pursue the opportunity for the Federal and State governments to provide support to the emergence of an effective, sustainable Angel community. In 2009 the AAAI Board submitted a number of proposals to the Federal government for support in building infrastructure and capability in the Australian Angel investor community for the purpose of increased capacity to invest in entrepreneurial innovation through improved access to better prepared capital.

Innovation By Angels is an integrated program designed to include collaboration with Government and other sectoral stakeholders to deliver:

• More funding for commercialisation of innovative entrepreneurial ventures
• Improved potential for successful commercialisation by Australian entrepreneurs
• Angel Capital to drive new jobs growth
• Increase the pool of accessible Angel capital
• Improved information and understanding of the Angel Capital community
• Effective, sustainable national infrastructure for Angel investors
• 20 sustainable active Angel groups within 3 years

The AAAI is in full agreement with the Australian Government that improved success in the commercialisation of Australian innovation will be a key driver of our national economic success in the 21^st century. Commercialisation of Australian entrepreneurial ventures will be of particular importance in leading the nation away from the impact of the Global Financial Crisis.

To effectively fulfil their role in the Australian capital and commercialisation “eco-system”, Angel investors require information about appropriate investment practices, investment structures, valuation policies and other “best practice” style information and resources. The AAAI was formed to promote and support Angels in their role as a pivotal source of funding for the commercialisation of Australian innovation.

In this time of economic recession early-stage investors in entrepreneurial, high growth businesses are eager to invest now. The counter-cyclical nature of early-stage investing makes these “down times” the critical period for a country to be investing in the next wave of innovative commercial opportunities. It is the time to build the infrastructure around the willing investors to make it easier for them to participate and succeed in supporting great Australian entrepreneurs.

The AAAI continues to seek support from the Commonwealth and State governments and from the Australian corporate sector to enable the Association to deliver timely and effective programmes in support of entrepreneurial success in Australia. The AAAI is pursuing its:

• Group Development Initiative to foster the establishment of sustainable and effective Angel Groups as the formal core of the broader Angel community.
• Angel Education program as key to developing and disseminating information on investment practices, investment discipline and investment strategies.
• Discussions about an Early-Stage Co-Investment Fund to provide matching funding on a deal-by-deal basis to eligible co-investors including Angel groups and early-stage venture capital/private equity investors.
• Preparedness for discussions about tax incentives drawn from the successful Angel tax incentive schemes from other jurisdictions.

Angel groups are not the only way for Angels to invest but, they are the best way to make Angel investment accessible to entrepreneurs. To survive and succeed, Angel groups need access to infrastructure, information and co-investment. Successful Angel groups will stimulate the supply of Angel capital, and thereby help fulfil the goals of Commercialisation Australia.