At least $50 million of private venture capital is being sought to establish specialist seed funds in biotechnology, one of the Government’s key growth sectors.
The New Zealand Venture Investment Fund (VIF) gave notice yesterday of its intention to set up one or more of the funds. It will call for proposals from experienced venture capital fund managers next month.
VIF general manager Franceska Banga said the fund would invest a minimum of $25m in the biotech sector, conditional on the successful biotech fund manager or managers raising at least $50m from private investors.
This was a “very positive” move for biotechnology companies in New Zealand.
“What this will do is bring together the skills of the companies and the investment opportunities to assist them to grow and commercialise.”
The fund was focusing on biotechnology because of New Zealand’s world-class capabilities in biotech research and innovation, and to complement its existing seed fund portfolio.
Four seed funds, run by private sector fund-managers, have been established.
