At the forefront is a group of small, ambitious, high growth and
globally focused companies generating new ideas that challenge the
expected. They have can-do attitudes and an ability to make more
from less. Most companies target the global market from day one;
others have rapidly outgrown their home markets and have expanded
via an enviable network of free trade agreements into China and
ASEAN countries, and through closer economic ties with
Australia.
The New Zealand private equity and venture capital markets face
the challenge of raising enough capital for the rapidly expanding
requirements of these companies, offering a deal flow pipeline that
gives investors the chance to reap the rewards of some of the
world's best investment opportunities.
After one-on-one sessions with 75 Kiwi
entrepreneurs, I am not able to differentiate between Kiwi and
American entrepreneurs or their ventures. Similar to their American
counterparts, Kiwi entrepreneurs are passionate about their
products and technology.
Bill Payne, US Angel
Investor
Significant opportunities exist for international funds and
organizations to invest in New Zealand's private equity and venture
capital funds. Selected funds have strong Government support via
the New Zealand Venture Investment Fund (NZVIF), which co-invests
to provide critical backing for young New Zealand companies with
high growth potential.
New Zealand Venture Investment Fund
The New Zealand Government actively supports investment in
young, high growth New Zealand companies. In 2002, the Government
established the New Zealand Venture Investment Fund to invest
alongside private capital into venture capital funds.
NZVIF's aim is to grow promising, innovative New Zealand
companies, with investments made in areas such as ICT, life science
and niche manufacturing. In 2005, this programme was extended to
partner with angel investor groups to fund start up ventures. NZVIF
has $200 million under management via its $160 million Venture
Capital Fund of Funds and its $40 million Seed Co-investment Fund.
It currently has investments in around 90 companies through six
venture capital funds and co-investment relationships with 11 angel
investment groups.
NZVIF operates as a private business and is governed by a
private sector board of directors. For more information about NZVIF
and its activities, visit the NZVIF website.
Related links
New Zealand Private Equity & Venture
Capital Association Inc (NZVCA)
