First State Super, H2 Ventures Set Up Investment Fund for Fintech Startups

Australian superannuation (pension) fund First State Super and venture capital firm H2 Ventures have set up a fund that will help Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term startups in the country.

First State Super manages AUD 54 billion ($39 billion) and has pledged a total AUD 250 million ($180 mln) for technology innovation initiatives over the next few years, according to Chief Investment Officer (CIO) Richard Brandweiner, as quoted by the Sydney Morning Herald.

Eight-figure investment pool

Although the size of the funds that will be allocated to fintech startups was not revealed, the sum will be in the eight-figure range, the daily said. The companies eligible for funding will be identified by H2 Ventures.

The official presentation for the fund was attended by Prime Minister Malcolm Turnbull. Speaking at the event, Brandweiner and Ben Heap, co-founder of H2 Ventures, said that the number of fintech startups in Australia is not sufficiently great at the moment, and so the fund allocated for investments in the segment is not as large as others. They added, however, that this could change and there could be talk of hundreds of millions of dollars being allocated for fintech investments.

Government backs tech innovation

The initiative has the backing of the government, which seems ready to start paying a lot more attention to the tech sector. The Financial Standard reports that the government is offering a 20 per cent tax deduction for investments in innovative businesses plus a 10-year exemption on capital gains tax on the returns from these investments.

Tax incentives, incidentally, were among a number of issues identified by the nascent fintech Australian industry at an event last month. The business then called for much needed reforms that could bring Australia closer to fulfilling its potential as a regional fintech Hub Hub A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method Read this Term.