QUALITY DECLARATION

INSTITUTIONAL ENVIRONMENT

Statistics presented in this release have been compiled from data collected by the Australian Bureau of Statistics (ABS) from fund managers in the Venture Capital and Later Stage Private Equity survey. The data were collected under the authority of the Census and Statistics Act 1905.

For information on the institutional environment of the ABS, including the legislative obligations of the ABS, financing and governance arrangements, and mechanisms for scrutiny of ABS operations, please see ABS Institutional Environment.


RELEVANCE

The Venture Capital and Later Stage Private Equity (VC&LSPE) survey provides key statistics on the financial contribution to venture capital and later stage private equity investments in Australia for the 2012-13 financial year. This release includes detailed statistics on VC&LSPE investment vehicles, such as source of funds, assets and liabilities and VC&LSPE investee company information.

The measure of investment is an indication of the level of innovation in the economy which drives improvements in productivity and living standards. The survey also informs public debate on Australian venture capital and later stage private equity activity and provides data with which to assess relevant government policy and programs.

The Department of Industry fully fund the survey and are the main users of the data. The Government provides assistance in early stages of investment or through tax exemptions. The Department of Industry fundamentally use the data to measure the impact of policies relating to small company start-ups and in identifying potential new areas of funding. State governments also use the data to determine areas requiring small business funding assistance.

The frame is constructed from lists of VC&LSPE fund managers in government programs managed by the Department of Industry (including Pooled Development Fund, Innovation Investment Fund, Venture Capital Limited Partnerships, Early Stage Venture Capital Limited Partnerships), membership of Australian Venture Capital Association Limited (AVCAL), the Australian Venture Capital Guide, business directories and venture capital journals.

TIMELINESS

Data are collected on an annual basis, with the reference period being the financial year (i.e. year ended 30 June). Statistics compiled from the data collected are released approximately seven months after the reference period.

ACCURACY

As the VC&LSPE survey does not have a sample component, the data are not subject to sampling variability. However, other inaccuracies, collectively referred to as non-sampling errors, may affect the data. These non-sampling errors may arise from a number of sources, including:

• errors in the reporting of data by respondents;
• errors in capturing or processing data;
• estimation for missing or misreported data;
• definition and classification errors; and
• inadequacies in the collection instrument.

Every effort has been made to reduce non-sampling error to a minimum by careful design of questionnaires, appropriate methodology and contact with providers to resolve anomalies. Response rates are generally very high which in turn increases the accuracy and level of the data which can be released for users. Thorough editing of the data received is undertaken to ensure that the integrity of the collection is upheld.

Occasionally reporting and classification errors are identified from previous cycles and where possible these are revised if they have a significant impact on the data. In this release, revisions were applied to 2010-11 and 2011-12 estimates. Revisions must be taken into consideration when interpreting results, particularly when comparing estimates over time.

COHERENCE

There are no other data sources currently available which can be directly compared to the VC&LSPE survey data. However, some observations can be made which suggests the survey outputs give a reasonable indication of real world expectations and events. For example, trends in VC&LSPE survey data aligning with trends in the AVCAL collection.

While the ABS seeks to maximise consistency and comparability over time by minimising changes to the survey, sound survey practise requires ongoing development to maintain the integrity of the data, its relevance to the changing needs of users and the efficiency of the collection.

In addition to non-sampling errors, there are factors which may affect the comparability of 2012-13 estimates with those of previous cycles and these should be taken into consideration when looking at estimates across years. For example, the 2012-13 publication is the first cycle to use the (in full) ANZSIC06 classification. This introduces a break in series for the industry information, as the classifications cannot be directly compared. (this will depend on wording from the relevant publication sections as well).

INTERPRETABILITY

There are no international standards that relate to growth capital statistics. However, in several countries, national industry associations conduct surveys of their members using a common core set of questions maintained by Thomson Economics. The VC&LSPE survey adopts a number of definitions from the Thomson Economics survey (e.g. stage of investment), modified for Australian industry and user needs.

Data providers self classify industry information using ANZSIC06 and Standard and Poors' Global Industry Classification Standard for types of activity. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data and applies consistent processing methodologies.

ACCESSIBILITY

In addition to main features (which include key findings commentary) resulting from the Venture Capital and Later Stage Private Equity survey,a PDF version of the findings and time series data (in spreadsheet format) are included on on the ABS website free of charge. See the Downloads page for this issue.

For links to data and publications relating to the VC&LSPE survey, and information and technology statistics please see the Innovation, Science and Technology @ a Glance pages in the ABS website <www.abs.gov.au>.

If the information you require is not available as a standard product, inquiries can be made by contacting the National Information and Referral Service on 1300 135 070 or Robert Nocciolino on Perth (08) 9360 5129.