about ESVCLP
An Early Stage Venture Capital Limited Partnership (ESVCLP) is a structure created by the Australian Government to encourage investment into early-stage, high-growth companies.
Through this program, investors back innovation while receiving significant tax benefits.
Why is ESVCLP important?
Investing in early-stage companies comes with both high risk and high potential. An ESVCLP program helps balance this by making investment in venture capital more attractive through generous tax incentives, which means investors keep more of their upside when companies succeed.
It also signals that the fund is operating under a government-recognised structure, with strong regulatory oversight.
What’s in it for investors?
Tax-Free Returns – Certain gains made through an ESVCLP can be exempt from income tax, including capital gains tax, when conditions are met.
Upfront Tax Deductions – Investors may be eligible for tax offsets on their committed capital.
Government Endorsement – The ESVCLP structure is specifically designed to promote innovation and economic growth in Australia.
Exposure to Innovation – Gain access to high-potential Australian startups that are otherwise difficult to invest in directly.
(Note: Nearly all Australian early-stage venture funds operate under the ESVCLP framework, but it remains a key benefit for investors compared to other asset classes.)
Want to know more?
We’d be happy to talk through how our fund works within the ESVCLP structure.
The information above is general in nature and does not constitute financial advice. Investors should seek independent advice and review the rules of the ESVCLP program as administered by the ATO and Innovation Australia.