10 August 2005
"NZVIF Embarks on Third Investment Round"
The New Zealand Venture Investment Fund (VIF) is calling for proposals from experienced venture capital fund managers or
firms to establish and manage a VIF Seed Fund under the VIF Fund of Funds Programme.
"VIF has $35million available for investment and can invest up to $25million into an individual VIF Seed Fund," says VIF
Chief Executive, Ms Franceska Banga.
* VIF's investment commitment is conditional on the successful Fund Manager(s) raising a minimum of $20 million from
private co-investors for investment in early stage high growth NZ companies. VIF invests on a 1:2 ratio (VIF:private
investors). It is expected that there will be strong institutional investor interest in this new investment round and
the fund managers selected by VIF.
"We expect 2-3 new investment grade VIF Seed Funds will be established in this round," Banga added.
Information is now being distributed through local and international venture capital networks and to expatriate New
Zealanders who may have relevant experience.
VIF advises:
* Guidelines and further information is available from www.nzvif.com .
* Applicants will have until 12th September 2005 to submit proposals.
* As with earlier appointments of Fund Managers, NZVIF will undertake a short listing process, then a full due diligence
of the short listed Applicants, to select two or more prospective investment grade Fund Managers.
* Prospective Fund Managers are required to demonstrate their experience, as well as skills in venture capital fund
management, capital raising, and offshore links criterion, through which commercialisation of New Zealand's best
technology companies can be promoted.
The New Zealand Venture Investment Fund is a 'fund of funds' established in 2001 to accelerate the development of the
venture capital market in New Zealand. Through VIF, the Government is investing up to NZ$100 million, alongside private
investors, in innovative New Zealand businesses with high growth potential.
VIF invests through individual investment funds (VIF Seed Funds) operated by private sector fund managers, appointed by
VIF. Five of these funds are up and running: iGlobe Treasury Management, TMT Ventures, No 8 Ventures, Endeavour iCap and
BioPacificVentures.
Through the VIF Programme, over a $160 million has already been committed for investment into new innovative companies
developing high value added products and services. Twenty three (23) New Zealand high growth companies have received a
total of $56 million of investment through the VIF programme since it began.
ENDS