Internet developer plugs in to international venture capital

By ROB O'NEILL

There's a new kid on the New Zealand venture capital block.

Christchurch internet developer Wired Internet Group has secured a deal with US venture fund manager Island Capital, based in New York, to invest up to $5 million in local e-ventures and technologies with global potential.

The investment vehicle for the funds is Wired Internet Ventures, formerly Netbridge Ventures. That company will be a "pot of cash" in which Island Capital will take a controlling shareholding.

Project development will be undertaken by the group's implementation company Wired Internet Solutions.

"Essentially, we are scouts on the ground looking for opportunities they can invest in," said Wired Internet's group finance director, Richard MacGeorge.

Island Capital is looking for projects with global applications that can be developed here and then exported.

In its internet development business Wired Internet Solutions is looking at a number of local projects that would not qualify for investment.

Island Capital will determine when the equity is paid into any such investments and on what terms.

"It's the creation of a vehicle and the formalisation of an arrangement so we can act for them here," said Mr MacGeorge. "We do the legwork and they pay for the implementation and take an equity stake in the companies as a result."

Island Capital was founded last year by three individuals, including San Francisco-based Kiwi fund manager Greg Marshall. It went out to high net worth individuals and institutional investors to raise what Mr MacGeorge described as "quite a sizeable fund" which is not yet fully invested.

The fund will complement rather than compete with most other venture capital firms, Mr MacGeorge said.