9. Dr PAUL HUTCHISON (National—Hunua) Link to this
to the Minister for Economic Development
What recent developments have there been that will boost New Zealand companies’ access to growth-enhancing capital?
Hon DAVID CARTER (Acting Minister for Economic Development) Link to this
Last night I was delighted to launch a new venture capital fund called Movac Fund 3. This fund is specifically aimed at young New Zealand technology companies that show significant growth potential. The Government also demonstrates its commitment to these companies by backing the fund through the New Zealand Venture Investment Fund. The Government is proving that it believes that these companies can expand to be good in New Zealand and then take on the world.
Dr Paul Hutchison Link to this
Why does the Government provide funding for the New Zealand Venture Investment Fund?
That is a very good question. The key to economic growth is to allow these companies to have access to capital. In that way we can increase substantially the amount of innovation in New Zealand. This Government’s commitment of funding to the New Zealand Venture Investment Fund, with a $40 million underwrite last year, very much achieved these aims. The New Zealand Venture Investment Fund has now invested in over 100 young technology companies. An interesting study just received showed that those companies have an average revenue, per employee, of $240,000, which is hugely more productive than most New Zealand companies.