Generate KiwiSaver Scheme Invests $20m To Help Accelerate More NZ Tech Companies

Generate KiwiSaver Scheme is investing $20 million with New Zealand’s most experienced venture capital firm Movac.

The investment will be into Movac’s Growth 6 Fund, a later-stage VC fund which will invest in Kiwi tech companies that have growing revenues and require funding to accelerate their business.

Generate describes the investment as a fantastic growth investing opportunity, with the ability to deliver both strong returns for their KiwiSaver members and social impact for Kiwis.

“We are very excited to be making our first investment into the venture capital space. Movac has a stellar track record of venture capital investment in New Zealand, and we look forward to our members’ funds being invested with the goal of supporting the growth of the next PowerbyProxi or Vend.” said Sam Goldwater, Generate’s Lead Portfolio Manager and Executive Director.

Founded more than 25 years ago, Movac is New Zealand’s largest and most successful venture capital firm, deeply integrated into the Kiwi technology sector. Their mission is to build the next wave of iconic Kiwi technology companies, by providing capital, skills, experience, mentorship and networks to accelerate the growth of early-stage tech start-up companies they invest in.

“The core of what we do is to back Kiwi entrepreneurs who have bold aspirations to build businesses solving valuable problems, which in turn helps to create jobs and wealth for New Zealanders. Historically, venture capital funds raised and deployed during economic conditions like we are currently in, have performed very well. We’ve had strong investor demand for our new Growth 6 Fund, and we have managed to raise more than $100m in the past 10 weeks” said Movac partner Mark Vivian.

“We’re absolutely delighted to have the support of Generate in our new fund. Their track record of investment performance, innovation, and achievement resonates strongly with us, and we look forward to working hard with Sam and the Generate team on behalf of their members.”

Examples of companies that Movac has invested in include Tradify (job management systems), Alimetry (gastric ailment solutions), Dawn Aerospace (green propulsion technology), ZeroJet (world’s first electric jet propulsion system for boats), and Atomic (low-code customer experience platform).

While impact investments are nothing new to Generate, this is their first foray into the venture capital space.

In 2020 Generate was the first KiwiSaver scheme to invest in social housing via a $21 million investment into Salvation Army community bonds, which helped build 118 warm, dry, affordable community houses across three locations. And earlier this year, Generate invested a further $13.7 million in the Te Puna Hapori - Verdi Social Housing Bond, which provided the funding for two more social housing projects, to house 78 people living in sub-standard accommodation.

ABOUT GENERATE

Generate is an award-winning KiwiSaver provider with over $3.5 billion funds under management, and a track record of strong long-term performance through responsible investment. Generate was recently awarded both Investor Choice and Adviser Choice Awards at the Research IP Funds Manager of the year awards and received a Consumer NZ People’s Choice Award for KiwiSaver earlier this year.

ABOUT MOVAC

Movac is New Zealand’s most experienced venture capital firm, investing in New Zealand technology companies for more than 25 years. To date, all four funds have been top decile or top quartile globally based on cash returned to investors. Previous portfolio companies include Vend, Timely, Coretex, Unleashed Software, Aroa Biosurgery, PowerbyProxi and Trade Me. Existing portfolio companies include Dawn Aerospace, Mint Innovation, Tradify, Alimetry, Solve, Atomic, ZeroJet, KRY10, Tradify, Auror, Miruku, Tectrax, Evnex and TracPlus.

Disclaimers: The issuer is Generate Investment Management Ltd. A copy of the Generate KiwiSaver Scheme Product Disclosure Statement and advertising disclosures are available at www.generatekiwisaver.co.nz/pds. Past performance may not be a reliable indicator of future performance.

The Fund Manager of the Year Awards were announced by Research IP on 16 November 2022. These awards should not be read as a recommendation by Research IP. For further advice on the relevance of this award to your personal situation, please consult your financial adviser, or visit research-ip.com/awards.

© Scoop Media