The government will divert $240 million of contributions to the New Zealand Superannuation Fund and combine it with $60 million of assets held by the Venture Investment Fund to improve access to capital for growing, mid-sized businesses that struggle for growth.
"This will help keep more start-ups in New Zealand for longer and support the proportion of New Zealand ownership," said Economic Development Minister David Parker.
The new fund would draw on the NZ Super Fund Guardians' advice for "a best practice commercial approach to support the NZ VIF in making venture capital investments to take start-up businesses to the next level."
Mid-sized companies in the $2 million to $15 million annual turnover range were not well supported by New Zealand's capital markets, although start-ups were able to get funding.
"Filling that gap will help reduce pressure on companies to sell prematurely to overseas buyers, which happens when you have weak early-stage capital markets," said Parker.
