NZPA
Thursday 14th July 2011 |
Text too small? |
A $30 million fund to help new companies expand was launched yesterday.
The fund, established by Wellington investment firm Movac, will target investments into entrepreneurial companies that are looking to expand into export markets.
Announcing the fund earlier this year, Movac managing partner Phil McCaw said companies often needed support through start-up periods, as they struggled with negative cash flow.
"Growth funds like Movac's will support companies through the expansion stage. Once these companies achieve profitability, they may access more traditional funding from both private equity funds and public markets."
Launching the fund yesterday, Economic Development Minister David Carter said the global financial crisis meant there had been limited investment activity in New Zealand's venture capital sector since 2007, and that growth capital was essential to building export-focused, high-productivity young companies.
"Last year, the Government provided a $40 million underwrite for the New Zealand Venture Investment Fund's venture capital programme to encourage more private investment into new venture capital funds. Movac's new fund has been able to tap into this new level of support," Carter said.
No comments yet
Spark New Zealand appoints new director to the Spark Board
AFT to announce full year results on May 23 2024
CRP - Korella North Takes Another Two Steps Forward
May 3rd Morning Report
ASB workers to strike as bank proposes an effective pay cut
Rising tides, sinking stocks: study explores cost of climate change
May 2nd Morning Report
AGL - Change in Senior Management
Devon Funds Morning Note - 01 May 2024
Rick Christie to step-aside as a non-executive director