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


Too early to predict returns from NZVIF's seed fund: Banga

Too early to predict returns from NZVIF's seed fund, CEO Banga says

By Paul McBeth

July 28 (BusinessDesk) - The government-backed New Zealand Venture Investment Fund says it's still too early to judge the performance of the Seed Co-Investment Fund, which backs early-stage firms alongside angel investors.

The NZVIF invested $5.4 million in the seed fund in the 12 months ended June 30, up from $5.2 million a year earlier, it said in a statement. That takes its cumulative investment to $29.93 million in 115 companies since the fund was set up in 2006. Some $61.5 million has been co-invested in the fund by 14 angel partners.

The fund's most recent success was the sale of local cloud-based computing firm GreenButton to Microsoft in May, which NZVIF chief executive Franceska Banga said at the time that it offered a "very healthy return" without being more specific. In the 12 months ended June 30, 2013, NZVIF sold investments worth about $207,000 through the seed fund, down from $989,000 a year earlier, according to its 2013 annual report. It sold seed fund investments worth $294,000 in the 2011 financial year.

Banga last week said it was too early to predict the fund's overall performance, with most of the companies at the early stage of their development.

"We have, however, seen some healthy returns from exits from HaloIPT and GreenButton," she said. "The rule of thumb is that most companies will fail, but a few very good performers will bring positive returns overall across a portfolio."

In May, Angel Association chairman Marcel van den Assum, who was also part of the successful sale of local software firm GreenButton, urged angel investors to broaden their portfolios if they wanted to improve their chances of a return, with too many backers relying overly on a small number of ventures.

NZVIF valued its seed fund investment at $19.39 million as at June 30, 2013, including $4.55 million impairment charges, according to its 2013 annual report. Of the 96 firms it had backed at the time, 26 were fully impaired.

The government has budgeted some $5.25 million for NZVIF to invest via the seed fund in the year ending June 30, 2015. A further $2.33 million was set aside to manage the operational costs of the venture investment and seed funds.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Sweet Health: Sugary Drinks Banned From Hospitals And Health Boards

All hospitals and DHBs are expected to kick sugary drinks out of their premises. University of Auckland researcher, Dr Gerhard Sundborn who also heads public health advocacy group “FIZZ”, says he welcomes the initiative. More>>


NASA: Evidence Of Liquid Water On Today's Mars

Using an imaging spectrometer on MRO, researchers detected signatures of hydrated minerals on slopes where mysterious streaks are seen on the Red Planet. These darkish streaks appear to ebb and flow over time. More>>


Bird Brains: Robins Can Just Be Generally Clever

Research from Victoria University of Wellington has revealed that birds may possess a ‘general intelligence’ similar to humans, with some individuals able to excel in multiple cognitive tests. More>>


Psa-V: Positive Result On Whangarei Kiwifruit Orchard

Kiwifruit Vine Health (KVH) has received a Psa-V positive test result on Hort16A and male vines on a kiwifruit orchard in Whangarei. This is the first confirmed case of Psa-V on an orchard in the Whangarei region. More>>

Regional Accents: Are Microbes The Key To Geographical Differences In Wine?

A new study of six of New Zealand’s major wine-growing regions has found that differences in flavour and aroma of wine from different areas may depend more on microbes than was previously thought. More>>


Science: AgResearch To Cut Science Staff In Areas Of 'Reduced Demand'

“We are therefore consulting with our staff from today on a proposal to reduce science staff in areas of shrinking demand. Combined with recruitment planned in areas of growing demand, this would mean a net reduction of 15 scientists and 41 technicians at AgResearch in the 2015/16 year." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news