Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

New law sets up $300m Venture Capital Fund

Hon David Parker

Associate Minister of Finance


11 December 2019

PĀNUI PĀPĀHO

MEDIA STATEMENT

New Zealand firms expanding beyond the start-up phase are set for more support after today’s passage of the Venture Capital Fund Bill, Associate Finance Minister David Parker said.

The Bill, which establishes a $300 million Venture Capital Fund, puts in place a key initiative of the Wellbeing Budget’s economic package.

“This Bill marks an important milestone in the establishment of this new fund. New start-ups are well served by angel investors with some seed capital support from the Government, but mid-sized ones, between about $2 million and $20 million in size, often struggle to find a source of funding in New Zealand,” David Parker said.

“The Venture Capital Fund will play an important role in building a more productive, inclusive and sustainable economy. New Zealand needs fast growing businesses operating in a healthy, well-capitalised venture capital market.

“Developing early stage capital markets will strengthen the pipeline of innovative firms that have the potential to grow from New Zealand, generating employment, lifting productivity and economic growth and boosting international connections.

“I expect the fund will be leveraged by investments from the private sector, so far more than $300m will flow into the sector.

“The effect will be to ensure more of our start-ups and are not forced to sell – or forced to sell too soon – because of the capital constraints they face.”

The Fund will begin with $260m of available capital. The remaining $40m will be made available when required and is expected to support the fifth year of the Fund’s investment period.

The Guardians of New Zealand Superannuation will oversee and monitor performance of the Fund. From early 2020, the New Zealand Venture Investment Fund (NZVIF), on behalf of the Guardians, will start formally engaging with private sector venture capital fund managers.

Once appointed, those fund managers will invest in companies with capital from the Venture Capital Fund as well as from private investors.

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Demise Of The Tokyo Olympics

As the Covid vaccines roll out around the world, the Tokyo Olympics are looming as a major test of when (and whether) something akin to global normality can return – to international travel, to global tourism, to professional sport and to mass gatherings of human beings. Currently though, it looks like a forlorn hope that Japan will be able to host the Olympics in late July. Herd immunity on any significant scale seems possible only by December 2021, at the earliest... More>>

 

Oranga Tamariki: Chief Executive Grainne Moss Steps Down

Controversial Oranga Tamariki chief executive Grainne Moss has decided to step down. More>>

ALSO:

USA: Prime Minister Congratulates President Joe Biden On His Inauguration

Prime Minister Jacinda Ardern has congratulated President Joe Biden on his inauguration as the 46th President of the United States of America. “I look forward to building a close relationship with President Biden and working with him on issues that matter ... More>>

ALSO:

New Zealand Government: Cook Islanders To Resume Travel To New Zealand

The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such ... More>>

ALSO:

A New Year: No politicians at Rātana in 2021

Annual celebrations at Rātana pā will be different this year, amid a decision to hold an internal hui for church adherents only… More>>

ALSO:

Government: New Public Housing Plan Announced

RT HON JACINDA ARDERN HON DR MEGAN WOODS The Government has released its Public Housing Plan 2021-2024 which outlines the intention of where 8,000 additional public and transitional housing places announced in Budget 2020, will go. “The Government ... More>>

Government: Pre-Departure Testing Extended To All Passengers To New Zealand

To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. More>>

ALSO:

Covid: Border Exception for 1000 International Students

The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began....More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels