CANBERRA - THE TAX CODE IS ON YOUR SIDE
ESIC: 20% offset on the way in, 0% CGT on the way out. By design.
The fund behind the accelerator. Every portfolio company enters at $100k-for-10%, survives two investment committees, and draws capital only as it clears verified milestones. LP commitments from $10,000 â a governed early-stage portfolio normally gated behind $250k minimums, in the asset class Australia’s ESIC regime rewards with a 20% tax offset and a 10-year CGT-free window for qualifying investors.
LP capital is never wired to a promise. It's released against gates the platform itself verifies - telemetry for MVP, billing data for revenue - with advisor sign-off at each step.
AI scoring surfaces the pipeline; the Investment Committee votes twice before a single dollar moves. Historic pass rate under 4%.
Docs executed, KYC complete, cohort starts. First tranche only - exposure to any single failure is capped early.
Working product with verified users releases the second tranche; first paying customers release the third.
Post-revenue companies pitch the VC network. External seed rounds set the first independent price on the portfolio.
3–5 members including at least one independent. Locked to the thesis: AI-native replacements for legacy software. Every decision logged on-platform.
Identical terms for every portfolio company. No negotiation means no adverse selection and clean, fast diligence for follow-on investors.
Holdings carried at cost until an external priced round, then at last-round price. No internal mark-ups, ever.
Quarterly LP statements with gate-by-gate portfolio progress, plus a live LP portal showing the pipeline funnel - applications through IC to funded.
Conflict-of-interest register covering committee members, advisors and the platform. Related-party terms disclosed in LP reporting.
Annual audit of fund financials and adherence to the mandate and valuation policy.
Early-stage returns are a power law: a small number of winners return the portfolio. Everything about Fund I is engineered around that fact - the price you enter at, the number of positions you hold, how losses are capped, and how winners get marked up.
Fund I enters every company at $1M post-money. Typical seed rounds price at $8–15M post - an angel buying at seed gets 8–15x less ownership for the same dollar.
A $10k commitment holds a slice of ~40 companies. Replicating that directly at $25k minimum tickets requires $1M+ of capital - and a decade of deal flow.
Failures stall at gates and stop drawing capital. Our first write-off cost $30k, not $100k - tranching cut the loss by 70% versus a lump-sum cheque.
ESIC treatment means qualifying gains held 1–10 years are tax-free - the power-law winners, which drive the entire return, compound outside the CGT net.
Assume Fund I deploys $4M into 40 companies at $1M post and ownership dilutes from 10% to ~4–5% through subsequent rounds. In venture, most outcomes come from the top 2–3 positions. In this structure, one company reaching a $100M outcome at ~4% returns roughly $4M - approximately the entire deployed capital from a single winner - before counting the other 39 positions, follow-on reserves, or the ESIC tax treatment on qualifying gains. The same $100M outcome bought at a typical $10M seed valuation returns roughly a tenth of that per dollar invested.
ENTRY PRICE IS THE RETURN LEVER: $1M ENTRY vs $10M SEED = ~10x MORE OF EVERY WINNER, FOR THE SAME DOLLAR.
Strong founders raise from networks before strangers. Individual angels systematically see the leftovers. The fix: the accelerator is the top of the funnel - founders come to us for the cheque and the program, before anyone else sees them.
A solo angel writing $10–25k has zero leverage on valuation. The fix: a standard $100k-for-10% deal, take it or leave it - price power that only exists because capital comes bundled with the program and the VC pipeline.
Individuals can't audit usage or revenue pre-investment. The fix: the platform runs the product telemetry and the billing rails - MVP and revenue gates are verified by systems, not slides.
Power-law assets punish small portfolios: most single positions go to zero. The fix: ~40 positions from a $10k ticket - breadth no individual can assemble at this entry price.
An angel's cheque clears and the influence ends. The fix: every portfolio company gets mentors, advisors, non-dilutive grant stacking and corporate pilot demand - the platform actively raises the odds of the asset you hold.
Direct positions sit unpriced for years unless the founder happens to raise. The fix: VC Day exists to manufacture priced rounds on a schedule - external capital marks the portfolio and builds the path to liquidity.
Australia's Early Stage Innovation Company (ESIC) regime gives qualifying investors two of the most generous concessions in the tax system - purpose-built for exactly this asset class. Fund I's portfolio companies are natural ESIC candidates: newly incorporated, pre-revenue-scale, unlisted, building genuinely novel technology.
Qualifying investors receive a 20% non-refundable, carry-forward tax offset on qualifying ESIC investments - up to $200,000 of offset per year for sophisticated investors. A $50,000 qualifying investment can mean $10,000 straight off your tax bill.
Retail investors are capped at $50,000 invested per year (max $10,000 offset). Offset is non-refundable but carries forward.
Capital gains on qualifying ESIC shares held between 1 and 10 years are disregarded entirely. If a $1M-entry portfolio company exits at 20x in year 7, the qualifying gain is tax-free. Ten years of upside, outside the CGT net.
Shares held under 12 months or beyond 10 years fall outside the modified CGT treatment.
ESIC benefits attach to qualifying investments, and flow-through depends on the investment structure. Fund I is being structured with ESIC eligibility as a core design objective, and every portfolio company is assessed against the ATO's early-stage and innovation tests at investment.
Each company's ESIC status is determined at the time shares are issued - confirmed in LP reporting per investment.
Self-managed super funds can invest in early-stage venture assets - and the ESIC concessions work harder inside super than almost anywhere else. The 20% offset applies against the fund's tax, and a decade-long CGT-free window matches the one investor horizon that's genuinely long-term.
First close prioritises registered LPs. No commitment until you've reviewed the offer documents.
We verify investor eligibility before sharing offer documents. Registering creates no obligation on either side.
LP portal access from day one - watch the pipeline your capital feeds.
Preview the LP portal