Lance Wiggs parlays Pacific Fibre experience into Punakaiki Fund
by Bill Bennett
August 22, 2013
Lance Wiggs and Chris Humphreys have launched the Punakaiki fund to invest in New Zealand internet, technology and
design companies.
Speaking at the Punakaiki Fund launch in Auckland earlier today, Lance Wiggs says the frustration he felt when raising
money to build the Pacific Fibre submarine cable was part of his motivation to start his New Zealand technology
investment vehicle.
Wiggs partnered with Chris Humphreys to launch Punakaiki. The pair say they intend to invest mainly in early-stage New
Zealand internet, technology and design-lead companies. He says ideally they would have elements of all three.
The Punakaiki Fund has registered an investment statement and prospectus for an initial public offering. Although the
fund aims to raise $20 million, it has the the ability to accept oversubscriptions taking it to a total of $50 million.
It already has an ‘indicative interest’ of $7.7 million in pre-registration funds*.
Punakaiki’s minimum investment is $2,000. Wiggs says this positions the fund as suitable for those New Zealand investors
looking to put money into the technology sector. “It gives access to an asset class that the public doesn’t usually
see”, he says.
Early stage sweet spot
Wiggs says the fund will invest in a range of categories, but the sweet spot is for early stage companies looking for
between $500,000 and $2 million. There is also scope to invest in companies with potential, that have been around for a
while but have yet to take off.
He said he and Humphreys have the freedom to operate fast in this segment and streamlined procedures are in place to
make sure when opportunity knocks there’s no delay. When an investment involves more than 10 percent of the total fund
or $2 million or something outside New Zealand, the pair have to go to the board for approval.
Wiggs says he wants Punakaiki to become the investor of choice for the rising generation of founders looking to start
innovative businesses in New Zealand.
Innovative model
The board includes Wiggs, Sandy Maier and former Bell Gully partner Wayne Hudson. Punakaiki is structured so that
shareholders can vote to remove the board if the fund doesn’t perform. Wiggs says there is a relatively low management
fees and the fund’s performance fee is based on its market value – which doesn’t kick-in until the fund is listed on the
NZX. He says this is expected to happen within three to five years.
Comment: Raising early stage finance is difficult in New Zealand compared with many overseas countries. Often founders have to
draw on their own funds or relay on family members, which can starve their businesses of the capital needed to grow.
Although there is government money, this can be difficult to tap into and can impose a strategy straightjacket on
management.
Likewise, small investors struggle to find suitable local opportunities to get behind New Zealand innovation. For these
reasons alone, it’s good to see to see Punakaiki established.
You can download the offer document from www.punakaiki.co.nz.
* The fund hasn’t raised any cash yet. This number is an indication of interest.
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