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Venture Capital €10,000,000 fund and the extended Seed Investment Scheme among topics discussed

Innovative climate tech start-ups met in Malta today for the C|limAccelerator Demo Day held at the Malta Digital and Innovative Authority (MDIA) held in collaboration with MCAST and supported by EIT Climate-KIC.

The aim of the conference was for innovative climate tech start-ups to present their ground-breaking solutions to address today’s critical environmental challenges.

Representatives from MIMCOL, and the Venture Capital within Malta Government Investments (MGI) gave an in-depth presentation about the Seed Investment Scheme (SIS) and the Venture Capital Fund.

Mr Paul Waltzing, Manager, Business and Project Management at MIMCOL, spoke about the SIS which offers incentives in the form of tax credits to individual investors resident in or operating in Malta, who invest in the equity of a qualifying Maltese start-up or early stage companies.

The scheme offers young entrepreneurs a route to vital equity funding in the initial stages of their project by effectively minimising the risk to investors. Those who take up the SIS can raise up to €750,000 in total investment; and won’t incur any costs for becoming a ‘qualifying company’ or to obtain the compliance certificate. investors can receive up to 35% tax relief in the tax year the investment is madeand a maximum of €250,000 tax credit in a single tax year; won’t incur capital gains tax on profits if disposal of investment is after 3 years, among other advantages. However, the company seeking investment must be incorporated and based in Malta.

Mr Ranier Chircop from Venture Capital within Malta Government Investments said that the Venture Capital Fund emphasises support for start-ups with viable business concepts and a dedication to scaling up. It also aims to foster involvement of both domestic and international investors in Malta’s venture capital ecosystem.

He also spoke about the functions as a VC fund centred around Maltese start-ups spanning through various sectors.

“This fund is looking to partner with investors for joint investment in start-ups and will look to align with the negotiated investment terms between the accredited investor and the start-up.

“It also provides support through equity shareholding, of up to €500,000 per start-up and the scheme will continue indefinitely until the €10,000,000 budget allocated to the fund is fully utilised,” he said.

The Malta Government Venture Capital Limited will be the sole entity responsible for administering this scheme. The governance of the scheme will be overseen by a Board of Directors comprising of six entities, vested with the exclusive responsibility of delineating the overarching policy and primary strategy guiding its operations.

The board will include representatives from prominent institutions such as Malta Government Investments (MGI), Malta Enterprise, Malta Development Bank, Gaming Malta, Malta Digital Innovation Authority (MDIA), and the Ministry for Economy, Enterprise, and Strategic Projects.

An Investment Committee will be set up in order to assist the BoD in reviewing and assessing applicants. Each investment will be capped at a maximum of €500,000 and the fund portfolio is estimated to comprise of 15 to 20 companies.

For more information on the SIS visit www.seedinvestment.com.mt. As for the Venture Capital Fund visit www.mgis.com.mt

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