5678.0 - Venture Capital, Australia, 2004-05
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 28/11/2005
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Steady growth in venture capital continues
The venture capital sector continued the steady growth of past periods in 2004-05, according to figures released today by the Australian Bureau of Statistics (ABS).
Commitments by investors to fund new ventures increased to $11.2 billion (b) by June 2005, a 25% increase on funds committed at June 2004.
There was a 20% increase in funds actually drawn from these investors (to $6.1b), leaving $5.1b of committed funds yet to be called on. Approximately 94% of drawn funds were from Australian investors.
The total value of all exits from investments through trade sales, initial public offers and buyback amounted to $1,043 million (m) in 2004-05, representing $572m of investment and $471m profit over the life of the investments. This compares to the total value of all exits amounting to $1,460m in 2003-04, comprising of $729m of investment and $731m in profits.
There were 210 venture capital investment funds and companies at June 2005, which had investments in 912 young or innovative companies. This compares to 195 funds with investments in 909 companies at June 2004.
As at June 2005, 'manufacturing and transport related activities' attracted the largest share of venture capital investment with 38% of total investment (36% at June 2004) followed by 'retail, services and real estate' with 26% (27% at June 2004).
Venture capital is high risk capital directed towards new or young businesses with the prospect of rapid growth and high rates of return. The venture capital survey was again conducted by the ABS, with the Department of Industry, Tourism and Resources providing partial funding.
Further details are in Venture Capital, Australia, 2004-2005 (cat. no. 5678.0).
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