Proposed sophisticated investor test changes will jeopardise startups.

The proposed changes to Australia's sophisticated investor test by the federal government could significantly limit access to investment opportunities in startups and innovation, according to Sam Almaliki, founder of the Regional Angel Investor Network. The changes would increase the thresholds for annual income from $250,000 to $450,000 and net assets from $2.5 million to $4.5 million, potentially hampering innovation, exacerbating geographic and gender disparity in investing, and concentrating investment power in wealthier individuals. Almaliki suggests implementing an education-based certification overseen by the Australian Securities and Investments Commission (ASIC), which would enable more experienced individuals to invest in Australian startups, promoting a diverse and dynamic investment environment.

January 29, 2024
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