Millions frozen in venture capital land as investor visas go awry
Prospective migrants hoping to secure a pathway into Australia on venture capital-linked visas have had millions of dollars frozen or say they have had applications rejected because of botched funding agreements.
An investigation by The Australian Financial Review, which included examining court documents and regulatory filings and discussions with industry insiders, offers a glimpse into the workings of the investment visa system and issues faced by hopeful migrants.
Alliant’s operations are based out of this Brisbane CBD building.
In one case filed in Queensland’s Supreme Court, a woman hoping to come to Australia is suing a building society with operations in Brisbane, alleging that she has been unable to withdraw $1 million despite a guarantee she could.
The building society, Alliant Perpetual, is defending the claim. It has admitted to a short-term liquidity crisis, with investors owed almost $10 million, but hopes new funds will allow it to fulfil withdrawal requests.
The building society worked with a Brisbane-based migrant investment support firm that is also facing lawsuits from clients seeking hefty refunds, alleging that visas were rejected because of botched financing deals. The firm, Estrala Capital & Advisory, has also denied the claims.
The current cases relate to the venture capital entrepreneur stream of visas, which required a $1 million funding deal and was among visa classes reformed by the federal government in 2021. It has been replaced with a new entrepreneur stream with less onerous funding requirements.
The venture capital stream required applicants to secure $1 million in funding for a high-value business idea and an enforceable financing agreement with an Australian firm, according to Home
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