NZVIF receives $49m underwrite for new fund investments

While this is not a new allocation of capital, it will provide the fund with additional capacity to commit to two to three new venture capital funds over the next few years.

"The underwrite facility is unlikely to be called, but it provides greater flexibility in the way that NZVIF manages the NZ$160 million which has previously been allocated to the venture capital program," said Franceska Banga, NZVIF chief executive, in a statement. "It allows NZVIF to make commitments into new venture capital funds and then use cash‐flows from past investments to meet those commitments."

Bangs added that the underwrite as timely and welcome saying it would enables progress with investments such as the recent co-fund partnerships with Taiwan's National Development Fund.

Since establishing NZVIF in 2002, the government has allocated NZ$160 million of capital to the venture capital program and NZ$40 million for seed investments.

Together with the NZ$40 million underwrite the government provided in 2011, this latest underwrite will give the NZVIF capacity to make commitments of up to $300 million. The fund has made investment commitments of over $200 million to date.

Eight venture capital funds and 14 angel group partnerships have so far been established through which NZVIF has invested $117 million into 126 companies. These companies include Orion Health, SLI Systems, PowerbyProxi, Booktrack, BioVittoria, and Zephyr Technology.

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