Govt extends underwrite of start-up
The Government will continue to underwrite start-up investor, New Zealand Venture Investment Fund, through to 2022 but the level of support will drop from 2018.
The Crown's $100 million underwrite facility will be extended until 2018 and then reduced to $60M until 2020, as returns to NZVIF from earlier investments become available for reinvestment.
The move, along with a $470,000 increase in operational funding, allows the fund to make co-funding commitments to new venture capital funds and partnerships.
Economic Development Minister Steven Joyce said the NZVIF played an important role in developing the start-up and growth capital markets for New Zealand companies.
"It has been instrumental in building up New Zealand's angel and venture capital investor markets from small beginnings to the point where private and public venture capital investment since 2003 has reached $1.1 billion. The angel investment formal market has provided a further $353M since it started in 2006," he said.
NZVIF chief executive Franceska Banga said the underwrite gives certainty to the market over the availability of the fund's capital for investment in coming years.
Mr Joyce said the Government expects NZVIF to become self-sustaining over time and the extension of the underwrite guarantee gives the fund time to make that adjustment.