NZVIF to co-invest in pioneer fund

The Government-backed New Zealand Venture Investment Fund (NZVIF) said today it has agreed to co-invest up to $15 million in Pioneer Capital Partners' Pioneer New Zealand Innovation Fund.

The Pioneer fund will be the sixth fund established within the existing $100 million NZVIF Venture Capital Programme.

"The Pioneer team brings an attractive blend of entrepreneurial, operating and investment experience along with strong offshore networks, which will be of assistance to the companies it backs as they seek to grow in larger markets," NZVIF chief executive Franceska Banga said.

Pioneer's investment programme spans specialised manufacture and design, information and communications technology.

Today's development follows a budget announcement that the Government plans to boost its investment in the NZVIF by $60m over the next three years.

NZVIF was established by the Government in 2002 to fill a gap in funds operating at the high-risk "seed stage" of investment in New Zealand.

It operates as a fund of funds, investing $1 for every $2 of private capital invested.

Five funds already operate under the scheme; iGlobe Treasury Management, TMT Ventures, No 8 Ventures, Endeavour iCap and BioPacificVentures.

So far 34 early stage companies have received investment through the programme.

- NZPA