NZ venture capital pot gets $40m boost | Stuff.co.nz

TOM PULLAR-STRECKER

High-profile United States technology investor Peter Thiel has set up a $40 million venture capital fund in partnership with the New Zealand Venture Investment Fund (NZVIF), set up by the Government in 2002 to kick start the venture capital industry.

NZVIF has committed $20m to the fund, Valar Ventures LP, which will invest in young Kiwi technology firms, with Thiel investing $15m and private New Zealand investors chipping in the balance.

Thiel co-founded and headed PayPal before he sold it to eBay, and was Facebook's first outside investor.

Economic Development Minister Steven Joyce said it was a very positive development.

''Because of the small size of the domestic market, fast-growth New Zealand businesses need access to world markets a lot earlier than a similar company would in the United States.''

NZVIF chief executive Franceska Banga said the fund would bring ''deep experience'' and significant networks, as well as new capital.

''Peter Thiel is one of the world's most successful technology investors. He and his team bring a considerable track record of expertise and resources. For young New Zealand technology companies, Valar Ventures' presence in the New Zealand market is a significant opportunity,'' she said.

''Alongside a scarcity of investment capital, the biggest challenge facing early-stage New Zealand technology companies is breaking into international markets. For web-based technology companies especially, the major market is the US. That is where Valar Ventures' networks, whether in Silicon Valley or on Wall Street, will be significant.''

Thiel said New Zealand was an attractive investment proposition. ''Over the last several years, New Zealand has been nurturing more early-stage tech companies.''

Valar spokesman Andrew McCormack said it had seen how much New Zealand's start-up ecosystem was flourishing through its work with globally focused technology companies like Wellington-based Xero.

''We were drawn to invest in New Zealand because of the vision and hard work of entrepreneurs like Sam Morgan and Rod Drury, incubators such as the Icehouse, and government initiatives like NZVIF.''

- ? Fairfax NZ News

Source: http://www.stuff.co.nz/business/industries/6619468/NZ-venture-capital-pot-gets-40m-boost

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