Govt tips further $60m into venture fund to encourage private investors

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

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.

(BusinessDesk)


2 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

2 Comments & Questions

Commenter icon key: Subscriber Verified

Hopefully an equity position or bonds, etc, that enable the fund to reap some benefit rather than just a grant.

Reply
Share
  • 0
  • 0

Its website http://nzvif.co.nz/about-nzvif.html states its "investments are made either through privately managed venture capital funds, or alongside experienced angel investors who are investing into New Zealand-originated, high-growth potential companies". They are not grants.

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6531 -0.0035 -0.53%
AUD 0.8848 -0.0181 -2.00%
EUR 0.5998 0.0002 0.03%
GBP 0.4193 -0.0018 -0.43%
HKD 5.0639 -0.0268 -0.53%
JPY 81.1800 -0.1890 -0.23%

Commods

Commodity Price Change Time
Gold Index 1089.2 -5.700 2015-08-03T00:
Oil Brent 50.2 -2.020 2015-08-03T00:
Oil Nymex 45.2 -1.860 2015-08-03T00:
Silver Index 14.5 -0.230 2015-08-03T00:

Indices

Symbol Open High Last %
NZX 50 5957.9 5957.9 5957.9 -0.40%
NASDAQ 5111.0 5125.9 5115.4 -0.19%
DAX 11408.2 11476.9 11443.7 0.11%
DJI 17596.9 17635.8 17598.2 -0.27%
FTSE 6688.6 6715.5 6688.6 -0.03%
HKSE 24364.4 24519.3 24411.4 -0.02%
NI225 20462.2 20552.0 20548.1 -0.14%