SparkBox

NZ Venture Investment Fund signs up partners

Posted by on 5 September 2006

The New Zealand Venture Investment Fund (NZVIF) announced today that, following the selection of its first Seed Co-Investment programme partners to co-invest into high growth potential New Zealand businesses, it is already starting to look for new co-investment partnerships.

Chief Executive of NZVIF Franceska Banga said,"The first partners for our portfolio are an important building block, however we need even more co-investment partners to provide capital and expertise to high growth potential New Zealand businesses that might otherwise struggle to attract funding. As of today we are calling for applications for additional co-investment partnerships."
 
The first four co-investment partnerships announced this week are:

1. ICE Angels - formed in December 2003, and part of the Auckland based ICEHOUSE, their investment focus is primarily on ICT, Media and Life Sciences.
2. Sparkbox Ltd - established in June 2001, it has invested approximately $1.5 million in seven companies. Sparkbox only invests in ICT start-up companies.
   
3. Powerhouse Ventures Ltd is a Christchurch based, angel investment group. It is a wholly owned subsidiary of Canterbury Innovation Incubator (Cii).
   
4. Chrysalis Ventures Ltd is a newly formed entity that intends to focus on life science opportunities in Agbio and medical/veterinary devices.

Banga said, "These first four partners feature a number of successful and well known angel investors who have not only succeeded in the New Zealand business environment, they have also built their own world-class companies. Their active investment will be invaluable to young New Zealand businesses just starting out on their own journey."

The co-investment partners will make the investment decisions while NZVIF will provide matching capital and broad industry and investment knowledge.

Banga added, "With the announcement of these first partnerships the Seed Co-Investment Fund and its partners can begin co-investing in earnest. Any young and innovative companies who are interested in investment capital and the hard-won wisdom of angels who have 'been there and done that' should speak to one of our co-investment partners."

In 2005, the Government added the $40 million Seed Co-Investment Fund to VIF's existing venture capital responsibilities. Combined with the matching seed funding of the new partners, this represents an enormous investment into the early stage sector.

The key objectives of the Seed Co-Investment Fund are to enhance the development of angel investor networks, stimulate investment into innovative start-up companies, and to increase capacity in the market for matching experienced angel investors with new, innovative start-up companies.

Banga concluded, "This is an exciting time for early stage and angel investment in New Zealand. Seed funding is pivotal to our economic growth, and the more high quality investment activity that can be stimulated, the better placed this emerging industry will be, and the more home-grown economic success stories we will see."  

Any individuals or syndicates with investment experience and available capital, who have a record of business accomplishment in New Zealand, and who have a passion for fostering early stage business, should contact NZVIF to discuss the criteria for becoming a co-investment partner.

www.nzvif.co.nz