The University of Auckland is poised to make the first investment from its $15 million high-risk fund intended to develop home-grown technologies.
Interests associated with The Warehouse founder and managing director Stephen Tindall have contributed $4 million to the NZ Seed Fund, and Todd Ventures and Lewis Holdings have supplied $1 million each.
The fund will provide capital for locally originated or enhanced technology. It was initiated by the university's technology unit, UniServices, and at least half the money will stay at the university.
UniServices chief executive Dr John Kernohan said the fund would fill an investment gap for start-up companies using new knowledge.
"New Zealand institutions would much rather invest in a management buyout or an expansion of an existing business," Dr Kernohan said.
"We have found that if there is a local seed fund putting its hand up to say we'll put a couple of million dollars into this project, then we can get other funds much more easily."
He said details of the fund's first deal would be announced within days.
Dr Kernohan said UniServices had grown revenues over 11 years from $1 million to $36 million and companies it had assisted had a market value around $2 billion.
University's technology seed fund ready to sprout
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