Two For One Return As Promising Start-ups Boost NZ Economy

MEDIA RELEASE

1st December 2014

Two For One Return As Promising Start-ups Boost NZ Economy

The latest investment report from the New Zealand Venture Investment Fund (NZVIF) shows that the emergence of promising start up companies, backed by the local venture capital market, is boosting the country’s economy, says New Zealand Private Equity and Venture Capital Association (NZVCA) Executive Director Colin McKinnon.

Commenting on last week’s release of the NZVIF Investment Report, Colin McKinnon says: `The country’s venture capital industry can hold its head up high internationally in terms of the recent returns on investment. We are clearly tracking international trends with our potential for good returns.’

According to the NZVIF Investment Report venture capital funds invested during the years 2007 to 2012 show a current return on investment of $2.11 for every dollar invested.

Colin McKinnon explains: `New Zealand businesses are predominantly privately owned. With 80 per cent of their funding from private money this means that venture capital is a vital part of New Zealand capital markets. The NZVIF venture capital programme alone has been the catalyst for over a billion dollars being raised to fund start up and emerging companies in New Zealand. Some of those companies have progressed to achieve a public listing.’

He points out: `The start-up and emerging company eco-system in New Zealand is clearly benefitting from the cornerstone investment provided by NZVIF programmes and the momentum is encouraging. We know that investors include venture capital in their portfolios for diversification and the chance to be part of the emergence of these promising start-up companies. Growing strong businesses contributes significantly to the growth of the economy and venture capital funds bring expertise that enables companies to build commercial operations and eventually enter international markets.’

ENDS

About the New Zealand Private Equity and Venture Capital Association

The NZVCA is a not-for-profit industry body committed to developing the venture capital and private equity industry in New Zealand. Its core objectives include the promotion of the industry and the asset class on both a domestic and international basis and working to create a world-class venture capital and private equity environment.

Members include venture capital and private equity investors, financial organisations, professional advisors, academic organisations and government or quasi-government agencies.

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