Venture Capital Fund

FAQ

What is venture capital?

Venture capital is the term given to private equity capital typically provided to immature, high-potential, growth companies in the interest of generating a return through an eventual share float or trade sale. Venture capital investments are generally made as cash in exchange for shares in the invested company. Venture capital typically comes from institutional investors (banks, pension funds, private equity investment companies) and high net worth individuals and is pooled together by dedicated investment firms into venture capital funds.

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Does NZVIF invest venture capital directly into young companies?

No. NZVIF is a fund of funds venture capital investor. We invest into private venture capital funds where the fund managers then decide into which young companies to invest.

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Where should an entrepreneur go for advice?

The related links on this website has a number of useful organisations who can assist entrepreneurs with advice on how to access investment capital.

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Where should someone wanting to invest in a venture capital fund go for advice?

Go to the various links on this website for a range of companies which can assist. The New Zealand Venture Capital Association is the industry body and can assist anyone wishing to invest into a fund.

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Is it appropriate for a Crown-owned company to be involved in venture capital investment?

NZVIF operates as a private investment business, developing and managing products for the early stage and venture capital investment markets. NZVIF was established because the venture capital market in New Zealand has been of a negligible size for many years. The Government took a decision that growth in this investment sector was an important part of increasing the available capital to young innovative New Zealand companies to enable them to grow and reach their potential. What New Zealand is doing is commonplace around the world, where many countries have seen the need for government investment to act as a catalyst in the development of venture capital markets.

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