New Zealand opens $200m VC scheme to private managers
New Zealand has opened a NZ$300 million ($199 million) government-backed venture capital scheme to applications from domestic and international private fund managers.
The scheme, confirmed last month as part of the 2019 budget, will be managed by government-sponsored investor New Zealand Venture Investment Fund (NZVIF), which will in turn appoint independent VCs targeting a Series A and B gap. The fund-of-funds consists of a NZ$240 million contribution from New Zealand Superannuation Fund and NZ$60 million of existing NZVIF assets.
"New Zealand must address the economic and social challenges presented by rapid technological change," Richard Dellabarca, CEO of NZVIF, said in a statement, adding that the initiative was finalizing commercial agreements and entering a legislative process to invite input from various stakeholders. "This initiative is an important step towards future‐proofing the New Zealand economy."
The capital is expected to be committed over five years as managers meet appointment thresholds and identify suitable start-ups to invest. The selection criteria for GPs will include diversity in fields of expertise and an ability to raise multiple funds, including funds without government support. NZVIF has confirmed that several local and international managers have expressed initial interest.
The program, which will contemplate early-stage round in a range of NZ$2-10 million, is designed to be complementary to NZVIF's NZ$50 million Seed Co-investment Fund (SCIF), which caps deployments at NZ$1.5 million per company. SCIF, which was founded in 2005, has made about NZ$140 million of co-investments in some 160 companies as of March.
"It has long been recognized that there is a gap in the market particularly when it comes to accessing capital in the start-up and early growth end of the market," Colin McKinnon, executive director of the New Zealand Private Capital Association, said in a release. "We know there are angel-backed companies ready for venture capital to execute growth ambitions."
More on Australasia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.