Objective
To develop the market for patient equity capital provision (including venture capital) to small and medium-sized Australian businesses (SMEs).
Significance for Australia
The program (established in 1992) encourages investment in pooled development funds (PDF) vehicles which in turn provides a pool of funds for specialist managers to invest in eligible Australian SME companies. Patient equity capital, including venture capital is an important source of funding for innovative, fast-growing Australian companies, especially for those experiencing difficulties in accessing equity capital for early stage development and expansion.
The PDF program was closed to new registrations on 21 June 2007 and the program will be progressively replaced by the new Early Stage Venture Capital Limited Partnership (ESVCLP) program.
Departmental role and current achievements
To access the concessional taxation arrangements, a PDF must be registered with Innovation Australia 
(the Board). AusIndustry, a division of the Department, works with the Venture Capital Committee to assist the Board in the delivery of this program.
PDFs may only invest in Australian companies with total assets of not more than $50 million. The principal concessions provided are concessional income tax treatment of PDF companies, and capital gains tax exemption for investors on the sale of their PDF shares.
From the inception of the program in 1992 up to June 2007, PDFs had raised more than $927 million and invested more than $779 million in eligible companies.
Targets for 2008-09
- To continue to support the remaining registered PDFs that are providing patient equity capital (including venture capital) to SMEs.
For further information
Phone: AusIndustry hotline, 13 28 46 (within Australia)
Email: hotline@ausindustry.gov.au
Web: www.ausindustry.gov.au
May 2008