Govt tips further $60M into venture fund to encourage private investors
Feb. 27 (BusinessDesk) – The government is backing the New Zealand Venture Investment Fund with a further $60 million as
part of its efforts to encourage more private investment.
The latest injection follows a previous $40 million underwrite and is on top of the $160 million the government has
already allocated to the venture capital programme.
“The underwrite facility is a contingent liability rather than an upfront sum,” said Economic Development Minister
Steven Joyce. “It provides the flexibility so that NZVIF can continue to make commitments into new venture capital funds
and then use future cash flows from existing investments to meet those commitments.”
NZVIF was set up by the government in 2002 as a private equity fund of funds investor, with about $200 million under
management, made up of the $160 million Venture Capital Fund of Funds and the $40 million Seed Co-investment Fund.
So far it has invested $117 million in 126 companies which have gone on to raise total investment capital of $700
million, generated revenue of $1.25 billion and export earnings of $945 million. Notables include Orion Health, SLI
Systems, PowerbyProxi, Booktrack, BioVittoria and Zephyr Technology.
“Capital markets are the growth engine for the economy but some parts can be strengthened,” Joyce said.
(BusinessDesk)