MEDIA RELEASE
1st December 2014
The latest investment report from the New Zealand Venture
Investment Fund (NZVIF) shows that the emergence of promising start up
companies, backed by the local venture capital market, is boosting the
country’s economy, says New Zealand Venture Capital Association (NZVCA)
Executive Director Colin McKinnon.
Commenting on last week’s release of the NZVIF Investment Report, Colin McKinnon says: `The country’s venture capital industry
can hold its head up high internationally in terms of the recent returns on
investment. We are clearly tracking international trends with our potential for
good returns.’
According to the NZVIF Investment Report venture capital
funds invested during the years 2007 to 2012 show a current return on
investment of $2.11 for every dollar invested.
Colin McKinnon explains: `New Zealand businesses are
predominantly privately owned. With 80 per cent of their funding from private
money this means that venture capital is a vital part of New Zealand capital
markets. The NZVIF venture capital programme alone has been the catalyst for
over a billion dollars being raised to fund start up and emerging companies in
New Zealand. Some of those companies have progressed to achieve public
listing.’
He points out: `The start-up and emerging company
eco-system in New Zealand is clearly benefitting from the cornerstone
investment provided NZVIF programmes and the momentum is encouraging. We know that
investors include venture capital in their portfolios for diversification and
the chance to be part of the emergence of these promising start-up companies. Growing
strong businesses contributes significantly to the growth of the economy and
venture capital funds bring expertise that enables companies to build
commercial operations and eventually enter international markets.’
Mr McKinnon notes: `Globally venture capital returns are
improving and in recent reports performing well compared with other asset
classes. The global financial recession forced the local investment industry to
learn a lot of lessons but there is now no doubt that the market has improved.’
ENDS
Contact:
Colin McKinnon, Executive Director,
New Zealand Private Equity & Venture Capital Association, New Zealand
+64 27 640 6406
Colin McKinnon, Executive Director,
New Zealand Private Equity & Venture Capital Association, New Zealand
+64 27 640 6406
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