The pay off for the VC fund can be when
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A company goes public and issue shares A company is sold to another company A VC can sell its stake in the company to another company.
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The advantage to the company is:
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Unlike a listed company, there is no expectation for an immediate dividend or return to investment. No set repayments, realising profits from investment happens in when a company reaches certain goals or objectives. The company often gets a 'knowledge injection' in the form of new board members and mentors from the VC companies VC investors often expect that some investments will fail, due to the high risk in VC in general
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According to Treasury, Australia was in the median range of OECD nations utilising venture capital (as at 2006), with about $11billion committed to VC to venture capital. But a large percentage of this funding was not committed and there appeared to be an 'under-investment' as there were not a suitable number of projects that met the VC criteria.
The Australian Government is a major player with Venture Capital, with a series of schemes like the Innovation Investment Fund and Venture Capital Limited Partnerships.
Some of the notable Venture Capitalists in Australia include Startmate (startrmate.com.au) Krestal Capital (krestalcapital.com.au) and Champ Ventures Au (ChampVentures.com.au).
