Brownlee announces $40 mln underwrite for NZVIF

Thursday 5th August 2010

Economic Development Minister Gerry Brownlee has announced the government will underwrite the New Zealand Venture Investment Fund’s venture capital programme by a further $40 million.

The underwrite comes on top of the $160 million it’s already injected, to stoke investment in young innovation-based local companies, and is in line with expectations outlined in the NZVIF's recently published Statement of Corporate Intent.

“Innovative companies need risk capital from our capital markets to develop and prosper,” Brownlee said.

“The Capital Markets Development Taskforce highlighted the issue of insufficient risk capital hampering the development of innovation-based young companies in its report last year.”

The programme has invested $245million with joint venture partners in 49 companies through six funds, as at the end of July.

The underwrite will let NZVIF make new investment commitments up to a total of $200 million, though it’s unlikely the extra funding will be drawn on.

Businesswire.co.nz

Comments from our readers

No comments yet