5655.0 - Managed Funds, Australia, Dec 2000
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 28/02/2001
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ABS survey shows healthy venture capital investment
At least $829 million was invested in venture capital projects in 1999-2000 financial year according to the results of a new survey by the Australian Bureau of Statistics (ABS), released today. This came from $666 million invested in new venture capital projects plus investments in existing projects of $163 million during the financial year.
The value of exits by venture capitalists from existing investments during the year was $536 million.
The survey, the first of its kind to apply standard statistical concepts to the activity, was conducted with the encouragement and assistance of the Department of Industry, Science and Resources and other Commonwealth agencies.
Most investment in venture capital projects is placed through special purpose venture capital investment vehicles, managed by venture capital managers. These managers identify and evaluate suitable projects and maintain close involvement with them, usually ensuring that the Boards of the companies concerned have sufficient breadth of experience, and access to quality advice. In the longer term, the investors exit from the venture capital investment through a public float or other buy-out of the company. The survey covered investment through venture capital investment vehicles and did not cover direct investments by "business angels".
Other highlights of the survey were:
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