Movac scores government co-funding to invest in start-ups

Thursday 16th September 2010

Wellington angel investment group Movac has joined forces with the New Zealand Venture Investment Fund, which will contribute up to $4 million in a fund to invest in high growth seed or early-stage companies.

Movac's partnership with NZVIF's Seed Co-Investment Fund will provide the company's $12.5 million Number Two fund with extra time and money over the next couple of years to invest in young companies said its director Phil McCaw.

The Movac website says some $2.5 million of the No. 2 Fund is uninvested at this stage.Typically Movac might initially invest up to $1 million in an early stage company, or up to $2 million over the life of its investment.

The SCIF co-investment will enable up to an extra $500,000 to be made available for such investments.

"Accessing capital for young companies is really tough here in New Zealand at the moment," McCaw said.

"The more early capital a company can get, the greater the chance they have at succeeding."

The Movac partnership is NZVIF's 12^th under its SCIF programme. To date, SCIF alongside angel investors has put over $44 million into 40 companies.

When Movac's investment in a new company meets NZVIF's criteria, NZVIF will match that one-to-one through SCIF."

NZVIF is keen to encourage more angel investors to assist in building the pipeline of young innovative start-ups," said NZVIF chief executive, Franceska Banga.

"The more active and strong angel groups we have, like Movac, the greater the pool of capital to build the pipeline of young businesses. Angel investing is becoming an important asset class in terms of commercialising New Zealand innovations."

Businesswire.co.nz

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