Telecom's $20m for big ideas

By Chris Barton

Telecom is to seed with $20 million a new venture capital fund aimed at encouraging e-commerce developments in New Zealand and Australia.

Chief executive Theresa Gattung made the commitment in a lunch address to Auckland customers yesterday. Details of Telecom's partners, how the fund will be managed and when its proceeds would be available are still being worked out.

Ms Gattung said the fund would help local and Australian companies turn "great ideas into great business" and would make Telecom one of the largest supporters of the "emerging new economy companies" in this part of the world.

"It is not just about finding small New Zealand technology companies and making them into medium-sized New Zealand companies," she said. "It is about finding big ideas with huge potential and helping them to the global stage."

Telecom's announcement follows a string of other New Zealand venture capital fund developments this year, including the Jenny Morel-promoted No 8 Ventures, which has raised $36 million, and the New Zealand Seed Fund, driven by Auckland University's Uniservices and aiming for $30 million.