Emerging and innovative Queensland businesses will be pleased to
hear that the State Government's $40 million Business
Development Fund has kicked off. The Fund is targeted at
emerging and high growth innovative Queensland businesses and will
provide opportunities for investments of between $125,000 and $2.5
million by the Fund. It is a requirement that there is at
least matching private sector co-funding of the business.
The Fund will invest directly in the business and both the
co-investor and the Fund will become shareholders in the business
(which must be a company). It will be necessary to have in
place a shareholders' agreement and other documentation and the
co-investor may be provided with a buy out right for the Fund's
shares in the business over the medium term.
The Fund has a number of investment criteria and will focus on
have the majority of their assets and employees located in
are commercialising research, or an innovative idea, product or
create opportunities for new, high value and skilled
have a realistic prospect of becoming commercially
An independent investment panel will assess Fund
In further welcome news for start-ups, the Federal Government
has announced that draft legislation to facilitate crowd sourced
equity funding will be implemented by the end of this year.
Further details on crowd sourced equity funding can be found here.
The Government reiterated its continued commitment to developing
a legislative regime for equity crowd funding in its recent
response to the Financial System (Murray) Inquiry, stating
that supporting the funding needs of early stage innovators is
"an urgent priority".
The Government's framework for crowd sourced equity funding
in Australia was outlined in its Consultation Paper earlier this
year, and detailed in our previous
It is hoped that both of these funding initiatives will increase
the level of investment in emerging and innovative businesses in
As the PNG economy grows and the need for capital increases, the borrowing powers and the sovereign immunity of the Independent State of Papua New Guinea (State) become more important to understand.
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