New South Wales Minister of Trade, Stuart Ayres, is concerned about venture capital investment in the state. He believes that the government should be collaborating with financial institutions to cater better venture capital to support startup businesses.
As reported by The Australian, Stuart Ayres said that venture capital investment should be part of New South Wales investment culture. With more venture capital investment, there would be more supporting funds for startup companies. With this, startups would get a stepping stone in starting their businesses.
The Trade Minister also highlighted that VC investment needs full support from the government. Based on the information from Business Insider, he cited "Government can play a strong educational role. What we have to do is talk to finance institutions and investment channels about why you can think differently about your investment profile."
According to The Australian, Ayres also paid attention on how regulations should be in line with business interest. The regulations should support venture capital to attract more investors. "There's a role for states to be pushing the Commonwealth government to make sure regulations are kept up to speed," said Ayres.
The South Wales Minister also gave example on how United States succeed to make the regulation to be inline with the business interest. "A lot of the regulation here [in the US] is about not stopping businesses from starting", Ayres added. For isntance, the government can make tax relief policy or venture capital investment with less requirements.
He gave an example on how United States has succeeded in fostering more and better venture funding. According to Forbes, United States has centered its attention on venture capital investing even though the venture market started to pull back in the country. It was noted that the Asian market had developed a good chance for venture capital investment as well. In fact, venture funding in Asia had increased close to $1B from 2011 and slightly over 100 deals to 2015.
Therefore, to increase the economic growth of a country, more venture capitals are suggested. It also needs regulations in line for business interest and government rule to reach it. It is proved by the success story of venture capital investment in United States and Asian countries.
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