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

 


New Taiwan-NZ venture fund closes first tranche with US$75M

New Taiwan-NZ venture fund closes first tranche with US$75 million in kitty

By Pattrick Smellie

Aug. 25 (BusinessDesk) - The government-backed New Zealand Venture Investment Fund has closed the first tranche of capital-raising for a new fund that aims to back kiwi firms into the greater China market, raising US$75 million and targeting at least a further US$25 million in partnership with its Taiwanese counterpart and a private venture capital group, GRC Partners, which has operations in Taiwan, Beijing, and Auckland.

NZVIF is committing US$20 million to the GRC Sino-Green Fund III, matched by its Taiwanese equivalent, the National Development Fund. Sino-Green III will invest at least US$35 million in New Zealand businesses in a move that GRC Partners' Auckland principal, Tony Bishop, says will provide a credible "leg-up" for local businesses seeking access to the fast-growing Chinese market because of its strong connections in-market.

GRC's Taiwanese operation has a direct relationship with Taiwan's Industrial Technology Research Institute and expects its Taiwanese and mainland China relationships to "open access to new networks and markets for fund managers and the high growth companies they invest in."

The fund is identifying a range of New Zealand companies in areas including medical devices, diagnostic tools, agri-tech, clean tech and renewable energy.

GRC's New Zealand arm, previously known as Pan Pacific Partners, already has investments in New Zealand firms Zephyr Technology, a medical diagnostics device launched into the US market, and Lypansos, a pharmaceutical company developing a novel oral treatment for eczema through an earlier VC fund, Iglobe Treasury.

GRC's Taiwanese and Beijing teams are predominantly Chinese investors who founded their operation after spending time in Silicon Valley, California. GRC has taken earlier investments to sharemarket listings.

"They liked the look of a lot of the deals we were discussing," Bishop told BusinessDesk. "They understand that New Zealand good at innovation but that companies need help with manufacturing and design and scale-up, and recognised a lot of what we have is very scalable in the China market."

The US$35 million commitment to invest in New Zealand originated deal was "a minimum commitment out of New Zealand."

GRC hoped to attract New Zealand capital to future funds.

If it reaches its US$100 million target, the GRC Sino-Green III fund will be one of the largest supported by NZVIF, said NZVIF's chief executive Franceska Banga.

"That will give it the capacity to make the larger investments which are needed for growing companies looking at offshore expansion."

NZVIF was formed in 2003, managing venture capital funds totalling $260 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

OECD And Zero Carbon Reports: Environmental Pressures Rising In New Zealand

New Zealanders enjoy a high environmental quality of life and access to pristine wilderness. However, New Zealand’s growth model, based largely on exploiting natural resources, is starting to show its environmental limits with increasing greenhouse gas emissions and water pollution ... More>>

ALSO:

Statistics: Record Net Annual Migration Levels Continue

In the February 2017 year, 71,300 more migrants arrived in New Zealand than left, Stats NZ said today. This equalled the previous annual record set in January 2017. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news