While the immediate objective of this provision in the tax laws would have been to leverage private investor funds to support the growth of SMEs, there is clearly an opportunity in the corporate sector.Grovest CEO Jeff Miller says it is natural that the bulk of investment into these funds has been from individuals rather than from trusts and corporates as they are the ones with the greater need for the tax benefit.But what if the motivation is less about the tax benefit — which is a 100% tax exemption in the year that money is invested into a 12J fund?"I think this will become the model of the future," says Gaurav Nair, executive director of JSS Empowerment Mining Fund, a registered 12J venture capital company."We launched at the beginning of February and the reaction has been overwhelmingly positive. A lot of potential investors really enjoy this type of partnership where you have an independent funder that is purely considering the economic value of investments, and an operational...
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