Science & Innovation Sector

New Zealand Venture Investment Fund Ltd (NZVIF)

NZVIF is responsible for the implementation of two programmes.

The VIF (venture capital) programme is a venture capital ‘fund of funds’ that aims to invest $160.0 million, alongside private sector co-investors, in a series of privately managed venture capital investment funds. The VIF programme has the following goals:

· to accelerate development of the venture capital industry by increasing the level of early-stage investment activity in the New Zealand market

· to develop a larger pool of people in New Zealand’s venture capital market with skills and expertise in seed and start-up investment

· to facilitate commercialisation from CRIs, universities and the private sector

· to get more New Zealand businesses on paths to global success by increasing their access to international experts, networks and market knowledge.

NZVIF is also responsible for the implementation of the Seed Co-investment Fund (SCIF). Through this programme, NZVIF aims to invest up to $40 million over the next five to six years, alongside approved partners, in small- and medium-sized businesses which are unable to attract venture capital funding because of their size.

Website: www.nzvif.com (opens in new window)

2008-12 Statement of Intent (.pdf, 415kb)

Key Company Data

Company Form	Crown entity company
Year of Establishment	2002
Head Office	Auckland
Chair (term expiry)	Sir John Anderson (June 2010)
Deputy Chair	Peter Taylor (June 2009)
Board Membership	Anne Blackburn (June 2011)
	Brian Mayo-Smith (June 2011)
CEO	Franceska Banga
Balance Date	30 June
Number of FTE Staff	6

Key Financial Data ($ million)	2003/04	2004/05	2005/06	2006/07
NZVIF operating expenses	1.0	1.0	1.7	2.0
VIF programme information
NZVIF capital drawn down	6.7	16.7	29.3	45.0
Total amount invested through programme (VIF and private sector)	25.5	55.1	96.3	135.5
Net value of investments	2.8	10.8	63.8	90.9
Amount committed or conditionally committed	50	65	85	93
Number of seed funds	4	6	6	7
Number of investments in companies	11	23	35	37
Number of deals from CRIs and universities	4	6	9	9

Financial data and staff member information correct as at 30 June 2007. All other information correct as at 1 September 2008.

All information (except for NZVIF operating expenses) is cumulative.

SCIF programme information

	2006/07
Number of partners (post the end of the 2006/07 financial year, the number of partners rose to six)	4
Number of early-stage investments	4
Capital drawn down from the Crown for investment in SCIF ($ million)	1.8

CCMAU commentary on 2006/07 performance

During 2006/07 there was a significant slowdown in the rate of investment into new companies with only two new initial investments made. While the number of new companies receiving investment is low, it was not unexpected due to challenges facing new venture capital fund managers.

2006/07 did see, however, an additional $15.7 million of capital drawn down by venture capital funds and invested into mainly follow-on investment into existing portfolio companies.

Since its commencement in July 2005, the SCIF programme has seen $1.8 million capital drawn down by 30 June 2007. During 2006/07 NZVIF reached agreement with four co-investment partners and made four investments. While this was a good result, it was lower than the targeted seven co-investment partners and eight to ten investments. This reflects the challenges facing potential angel networks finding and training active and passive investors.