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," Economic Development Minister Steven Joyce says. "It provides the flexibility so that NZVIF can continue to make commitments into new venture capital funds and then use future cashflows 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," Mr Joyce says.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- iPredict closing down due to money laundering risk
- Dunne warns of 'consequences' if Maori Party supports RMA reform
- Serco's prison report challenge: Hide and Davis go head-to-head
- Xero directors Drury, Winkler and Morgan cash in on 35% share price rally
- Tech expert's complaint about 'snake oil' ad upheld
Most listened to
- “A very ballsy thing to do” – Rodney Hide and Kelvin Davis discuss Serco’s response to Correction’s Mt Eden Prison report
- “The response from shareholders has been overwhelming” — A2 Corporation chief executive Geoff Babidge
- Greg Gent says a board of 13 people is "prehistoric"
- Arvida CEO Bill McDonald on his company's half-year net profit
- Lance Wiggs on the future of food exports
- Auckland Councillor Chris Darby on the Council's alternative funding report
- Nevil Gibson discusses his latest Editor's Insight on oil prices
- Campbell Gibson, Nick Grant and Chelsea Armitage chat about the inner workings of New Zealand media
- Paul Brislen discusses the 'snake oil' sales tactics of SalesConcepts
- Fonterra chief executive Theo Spierings reveals his ambitious China plan
- UDC Finance chief executive Wayne Percival talks about the company's profit
- Hamish McNicol discusses the latest court stories