Telecom VC Fund hits A$70M

By Phil Boeyen, ShareChat Business News Editor

Tuesday 3rd April 2001

Telecom's (NZSE: TEL) venture capital fund, TMT Ventures, is planning to announce a number of further investments in the next three months following its foray into an optical equipment company.

The fund was set up last year by Telecom focusing on technology, media and telecommunications and has so far raised A$70 million from a target figure of A$120 million. Telecom has invested around A$33 million.

TMT Ventures executive chairman, Ross George, says the fund is attracting a strong flow of proposals on both sides of the Tasman.

"In New Zealand, we are looking now at four specific proposals representing a combined investment of NZ$10 million."

The fund recently made its first investment of US$1.25 million into an Australian company, Redfern Integrated Optics, which designs and manufactures high-end optical equipment for communications networks.

Telecom's GM Business Development, John Bell, says many of the technologies the fund is investigating are profitable in their own right and also grow the overall communications market.

He says the involvement in TMT Ventures provides each of the corporate investors with insights into communications industry trends emerging in Australasia and, on occasions, globally.

"We have become a catalyst for like-minded corporates and individuals to fund new ventures, some of which will become future leaders in technology, media and telecommunications."

The venture capital fund says discussions are continuing with other prospective investors as part of the ongoing programme to raise the targeted A$120 million.

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