Venture Capital Study "Welcome and Timely"
Venture Capital Study “Welcome and Timely”
The LECG Study of New Zealand’s venture capital market was “welcome and timely” says Franceska Banga, NZ Venture Investment Fund Chief Executive.
The study report, released today by Economic Development Minister Trevor Mallard is designed to assist policy makers as they manage the challenges of fostering a venture capital industry and providing an operating environment for it to flourish in and grow to be an internationally sustainable industry.
“The Study positively endorses the role played by the New Zealand Venture Investment Fund (NZVIF) as a venture capital industry catalyst and promotes a future role for VIF that complements an evolving picture of the objectives and needs of a sustainable venture capital industry in New Zealand”, said Banga.
NZVIF highlights the following observations from the study:
- Prior to 2002 and VIF’s formation, venture capital industry infrastructure was virtually non-existent and certainly had little seed or start-up investment focus
- VIF’s structure and the arm’s length distance from Government is working well and suits the present NZ venture capital market
- The goal of venture capital industry self-sustainability remains some way off and the sector continues to require “the involvement of VIF to stimulate the market”.
“Looking ahead, the study identifies regular performance appraisal for VIF against the industry needs and the market dynamics as well as diversifying VIF’s level of engagement with the investor marketplace including overseas investors. Some of the study’s recommendations are matters of policy which VIF will take up with MED as part of the assessment process,” Banga added.
Ms Banga will convene a session at the NZ Venture Capital Association Conference held in Auckland tomorrow (Thursday 3 November).
She is available to discuss the LECG Study.