Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZVIF to invest in new funds with $60m underwrite

NZVIF to invest in new funds with $60m underwrite

Media release: 27 February 2013

The New Zealand Venture Investment Fund expects to commit to two to three new venture capital funds over the next few years, following the government’s decision to provide NZVIF with a new $60 million underwrite facility.

NZVIF chief executive Franceska Banga said the underwrite is not a new allocation of capital but it provides NZVIF with additional capacity to commit to new venture capital funds.

“The underwrite facility is unlikely to be called, but it provides greater flexibility in the way that NZVIF manages the $160 million which has previously been allocated to the venture capital programme. It allows NZVIF to make commitments into new venture capital funds and then use cashflows from past investments to meet those commitments.

“The additional $60 million in the form of an underwrite of NZVIF is timely and welcome. It enables us to progress with new investment partnerships, like the recently announced cofund partnership with Taiwan’s 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 startup companies.”

Since establishing NZVIF, the government has allocated $160 million of capital to the venture capital programme and $40 million for seed investments. Two years ago, it provided a $40 million underwrite to NZVIF for the programme. Together with the latest underwrite, NZVIF has capacity to make investment commitments up to $300 million. NZVIF has made investment commitments of over $200 million to date.

Eight venture capital funds and 14 angel group partnerships have so far been established. Through these, NZVIF has invested $117 million into 126 companies including promising companies like Orion Health, SLI Systems, PowerbyProxi, Booktrack, BioVittoria and Zephyr Technology which have gone on to raise total investment capital of $700 million. They have also earned revenues of $1.25 billion, including export earnings of $945 million.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Food: New National Science Challenge To Launch Research

What if New Zealand developed the next generation of foods that will help consumers maintain their health and protect them against diabetes, irritable bowel syndrome or chronic allergies? What if we could answer some big science questions – use that knowledge to develop foods with proven health benefits and boost our economy at the same time? More>>


Trade & Retail: Chinese Disaster Spells Quiet Season For NZ Fireworks Sales

In August, two massive explosions at a warehouse at the port in the port of Tianjin, Northern China, killing more than a hundred people and devastating large areas of the city. In the wake of the disaster, Chinese authorities rushed to regulate the distribution of all dangerous goods... More>>



Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news