$60m facility broadens NZVIF horizons

CATHERINE HARRIS
Last updated 12:50 27/02/2013

Relevant offers

Industries

Auckland officials face corruption charges Hospitality body may take legal action over Christchurch City Council's proposed local alcohol policy The Colombo gears up for development The Media Counsel owner Glenda Wynyard appeals home detention sentence Papatoetoe shop owner fed up with council indecision Man pleads not guilty to bribing Auckland Council officer Volkswagen investors hope Piech exit may usher in change Christchurch railway site goes up for sale Countdown collectables: Shopping with animal instinct gets second run Pizza Hut's Anzac ad "in poor taste" - RSA

Two or three new venture capital funds are expected to get a kick-start from the government-funded New Zealand Venture Investment Fund (NZVIF) as a result of a new $60 million underwrite facility.

The underwrite was not a new injection of capital but gave the fund the ability to make new commitments, NZVIF said today.

Chief executive Franceska Banga said the underwrite was "timely and welcome", as it would allow the fund to progress partnerships such as its co-funding arrangement with Taiwanese counterpart, the National Development Fund.

"We expect to see two to three new funds beginning the capital raising process over the next three or four years which, if established, will help the flow of growth capital for start-up companies," she said.

Banga said the underwrite facility was unlikely to be called, but it provided greater flexibility in the way that NZVIF managed its money.

It meant NZVIF could make fresh commitments and then use cashflows from past investments to meet them, she said.

NZVIF has allocated $160m in venture capital and $40m to seed investments since it was established. The latest underwrite means the investment body can now invest up to $300m.

NZVIF supports eight venture capital funds and 14 angel group partnerships in 126 companies, including Orion Health, PowerbyProxi and BioVittoria.

The companies in its portfolio have gone on to collectively earn revenues of $1.25 billion, including export earnings of $945m.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content