According to a business group wealthy immigrants are required for investing in startups.
Andrew Hamilton, chief executive of business growth hub The Icehouse said that they are proposing a minimum 10% of capital from wealthy immigrants to be place into investments meant for growth like venture capital, angel investment or funds or growing funds for private equity. As they are counted into class of risky investment, 90% of the capital can be placed in less risky investments like bank deposits and bonds.
A wealthy immigrant needs to invest $10 million if he comes under Investor Plus programme, but the amount of money can go in government bonds. $1 million investor visa is also there with tight rules for skills in English language and with other criteria.
New Zealand has introduced a category for wealthy migrants in the year 2009; a change is required in the rules for this proposal. Said Mr. Hamilton.
According to the figures from Icehouse, ever since the category has been introduced, a total of 570 applications were approved, that brought an amount of $ 1.6 billion into new investment. A total of 370 applications are principally being approved with the value count of $70 million. More 670 applications awaits for consideration which represents around $1.1 billion.
"We have talked to the officials at MBIE and Immigration NZ and there is a process under way of review, which includes looking at the new proposed Global Impact Visa coming in. Their feedback was positive without necessarily jumping in line with what we proposed. Basically, we are trying to give them a push along." Said Mr.Hamilton.
The new campaign also hints about The Icehouse’s self interest. But this concept already took off over the channel.
Since the month of July, Australia required wealth immigrants to invest for a minimum of $A50,000, or they have to invest 10 percent of $A5 million to invest in the funds for growing private equity funds or venture capital. This is expected to increase atleast$A1 million which is also its 20% within two year period of time.
An investment of another $A1.5 million should be invested into qualified managed funds or investment companies which are listed, that invest in small companies who are on the ASX list. Then the fund balance can be invested in other companies that are listed, annuities, real assets, or corporate bonds, with the subject to limited property investment. Australia also wants its investor immigrants to pay economic development charge of $A250,000 which is a onetime pay amount. These policies are game changers for Australia says Mr.Hamilton.
A new KPMG paper of says New Zealand businesses would require a combination of $420 billion in its capital by the year 2025 to supports its government’s agenda for growth but analysis of KPMG also suggest that there is going to be a shortfall of around $115 billion required to be funded by the overseas investment. KPMG says that migrant investors can be able to provide exciting capital’s pool.
Immigration rules saw that government doubling the points from 20 to 40, for enterprenuers who are planning to set up business in regions under Entrepreneur Work Visa, or third of total need for entry.