Government names four 'angel' investors for seed fund

Trevor Mallard

The Government's $40 million Seed Co-Investment Fund aimed at helping young businesses with strong potential for high growth has named four inaugural "angel" investment networks it is to team up with.

The four seed fund private sector partners are Chrysalis Ventures, ICE Angels, Powerhouse Ventures and Sparkbox.

They will seek out investment opportunities and make investment decisions, Economic Development Minister Trevor Mallard's office said today.

As long as the investment meets the fund's criteria, the government investment will be made available. The Government shares the same risks, costs and opportunity as the private sector partners.

The fund is aimed at small to medium-sized enterprises at the seed and start-up stage of development.

Its initial investments are expected to be committed later in 2006 with the programme ramping up in 2006/07.

Announced in July last year, the seed fund is to operate for 12 years, with investment through the programme to be made during a five to six year period.

"The high calibre of the co-investor networks partnering with the Seed Co-Investment Fund will help strengthen the foundations of angel investment in New Zealand," Mr Mallard said.

"This is an important area of investment as we seek to grow the number of firms that are globally competitive, as part of our economic transformation agenda."

- NZPA