$30m capital venture fund launched

NZPA

Thursday 14th July 2011

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.

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