NZVIF commits $13.5m to Movac's fourth fund

This is the second Movac fund in which NZVIF has invested; the LP also contributed to Fund III, which launched in 2011 and closed in 2012 with NZ$42 million. Movac is seeking to raise NZ$80-100 million for the new fund, which it plans to close by June.

Movac Fund 4 will focus on New Zealand start-ups that have passed the Series A stage, have a team in place to grow the business, and the ambition to scale to NZ$100 million in revenue. The GP plans to back up to eight start-ups, committing NZ$2-10 million to each one.

Since its first investment in internet auction website TradeMe in 1998, Movac has invested in more than 25 New Zealand companies and deployed over NZ$55 million in capital. AVCJ Research's records show a history of mostly information technology-focused deals, though other sectors, including healthcare, utilities and greentech, are also represented in the firm's portfolio.

"We continue to see significant demand for growth capital funds of this nature in New Zealand. While the angel investment community is thriving, and the private equity market is well serviced, accessing rounds of NZ$2 million to NZ$10 million in growth capital funding remains very difficult for New Zealand companies," Movac Managing Partner Phil McCaw said in a statement.

NZVIF is a government-supported fund-of-funds that aims to encourage domestic entrepreneurship by backing venture capital investors. In addition to LP commitments, NZVIF also directly manages the Seed Co-Investment Fund, which invests in small and medium-sized enterprises in the seed and start-up stages.

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• Topics
• Australasia
• Venture
• Fundraising
• LPs
• New Zealand
• New Zealand Venture Investment Fund