Taiwan, New Zealand set up 1st venture capital fund

Taiwan, New Zealand set up 1st venture capital fund

The first venture capital fund backed by Taiwan and New Zealand’s governments was approved Aug. 1 by authorities on both sides, paving the way for greater bilateral collaboration on business and investment.

Pan Pacific Capital Fund is the first of its kind set up under the Strategic Cooperation on Joint Investments in Venture Capital Funds agreement concluded by Taipei and Wellington Oct. 18, 2012, in Taipei City.

Managed by Core Pacific-Yamaichi Financial Advisory Ltd. in Taiwan and Pan Pacific Capital Ltd. in New Zealand, the fund is expected to raise US$70 million from local and foreign investors, with up to 60 percent coming from both governments.

Sources familiar with the matter said over the next decade, the fund will focus its investment activities on agricultural food products, creative media, and lifestyles and health. Target sectors span biochemistry, clean energy, education, food products, gaming, medicine and technology.

The fund received a positive response from market analysts, who see it as promoting multilateral collaboration in the Asia-Pacific region. “It helps firms in both countries extend their reach to neighboring markets such as Australia and mainland China,” they said.

Separately, Taiwan government-funded Institute for Information Industry and PPC concluded the Taiwan and New Zealand Memorandum of Understanding for Investment and Commerce the same day in Taipei.

Inked by Ko Hsien-tang, director-general of the Industry Development Augmentation Division, and Tony Bishop, managing director of PPC, the pact calls for expanded cooperation and exchanges on industrial development and investment promotion, with a focus on digital content and related sectors.

Ministry of Economic Affairs statistics showed that venture capital firms in Taiwan invested over NT$260 billion (US$8.67 billion) in around 14,000 projects during the past 30 years, with resultant capital formation reaching NT$2.3 trillion.

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