Endeavour Capital offers $200m in financing

Wellington-based venture capital firm Endeavour Capital is offering up $200 million of foreign capital to cash-strapped Kiwi companies looking to take the next step.

Executive chairman Neville Jordan announced the new funding pool today, which is focused on innovative companies that require follow-on capital.

Successful applicants have to prove they can thrive already, but might need serious funds for ongoing research, business expansion or international growth.

''Rather than export our companies to secure funding, we will bring capital into New Zealand to keep local businesses here,'' said Jordan.

He said the new capital would fill a gap in the local market, which was beyond the capacity and policies of local ''angel'' investors and other venture capital sources.

The selection process will see investment reviews and decisions take place on a rolling basis.

Companies would need to have proven management teams and show that they understood governance and risk mitigation.

They would also need to offer products or services that would benefit from offshore distribution networks, making good use of Free Trade Agreements.

Endeavour Capital has strong networks in the USA, Asia and Gulf States, and Jordan said the new capital would also provide access to some of these markets.

Asian investor networks will be coordinated through Endeavour Capital partners Hu Wei and Gavin Crombie, both of whom live in China.

Hu has over 18 years experience working in capital markets, including seniorpositions in mergers and acquisitions, financing and stock exchange operations.

Kiwi expat Crombie is the founder of architectural visualization company IDFGlobal, and a member of New Zealand Trade and Enterprise's China Beachhead panel.

Fairfax Media