New Zealand's Movac raises $125m for Fund VI
New Zealand-based Movac has closed its sixth technology fund on NZD 202m (USD 125m) despite what Mark Vivian, a general partner at the venture capital firm, described as “the most challenging fundraising conditions I've experienced since the GFC [global financial crisis].”
New Zealand Superannuation Fund (NZ Super) once again participated as a cornerstone LP, contributing 50% of the NZD 100m first close, which was announced last December. NZ Super had scope to increase its commitment to NZD 70m, depending on how much Movac raised from other investors.
Other backers of Movac Growth Fund 6 include Generate KiwiSaver, Fisher Funds, and Government Superannuation Fund. Additional commitments came from indigenous Maori tribes, also known as iwi groups, community trusts, family offices, and high net worth individuals.
The fund will make 8-12 investments in New Zealand technology companies that have the potential to scale to more than NZD 100m in revenue. Targets will have at least NZD 2m in annual revenue and be experiencing rapid growth.
“Our investors clearly see the opportunity in supporting the next wave of Kiwi tech founders and their companies going global. Our investment track record, disciplined investment approach and 'lean in' style has clearly resonated well. We've also returned cash to investors over multiple funds,” Vivian said in a LinkedIn post.
Movac closed its fifth fund on NZD 250m in 2021 and 17 investments have been made from that vehicle, according to the VC firm’s website. They include assorted hard-tech and software-as-a-service (SaaS) players, as well as recyclable metals start-ups Mint Innovation, alternative proteins specialist Miruku, space technology start-up Dawn Aerospace, and electronic amphibious systems developer Tectrax.
Among Movac’s earlier portfolio companies that have achieved global expansion are cloud-based inventory management start-up Unleashed Software and point-of-sale (POS) software provider Vend. They were exited to UK-based Access Group and Canada’s Lightspeed POS in 2020 and 2021, respectively.
The VC firm is also in the market with an early-stage technology fund, Movac Emerge Fund 4, which Vivian said is “getting strong uptake.”
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