WELLINGTON, Dec. 19 (Xinhua) -- The New Zealand government issued the Venture Capital Fund Policy Statement on Thursday, outlining the requirements for investments from the new 300-million-New-Zealand-dollar fund set up to support New Zealand firms as they expand beyond the start-up phase.
The statement accompanies the recently passed Venture Capital Fund Act and provides high-level policy directions to the Guardians of the New Zealand Superannuation Fund (the Guardians), which will oversee and monitor the performance of the Fund.
"The Policy Statement follows extensive engagement with industry to ensure the operational details of the new fund are appropriate," New Zealand Finance Minister Grant Robertson said.
"It covers key definitions and requirements around domestic and international fund investments, private capital requirements, at what investment stage money should be allocated and that the Guardians must take into account the government's economic strategy and plan to transition to a low carbon economy," the minister said.
"The fund forms part of the government's approach to supporting early stage and innovative companies, including such initiatives as the R&D tax incentive and the recently announced Technology Incubator programme," Associate Finance Minister David Parker said.
"Developing early stage capital markets through this fund will help boost innovative firms that have the potential to grow, generating employment, economic growth and international connections," Parker said.
From early 2020, the New Zealand Venture Investment Fund will implement a fund-of-funds model on behalf of the Guardians, and will start formally engaging with private sector fund managers.
Once appointed, those fund managers will invest in companies with capital from the Venture Capital Fund as well as from private investors. (1 New Zealand dollar equals 0.66 US dollar)
