Seed Co-investment Fund

Seed Co-investment Fund

The Seed Co-investment Fund is an early stage direct investment fund aimed at early stage businesses with strong potential for high growth. It was established in late 2005 and made its first investment in 2006.

The fund provides $40 million of matched investment alongside selected Seed Co-investment Partners on a 1:1 basis into seed or start up high growth New Zealand businesses.

Highlights – April 2014

Capital Allocated $40 m
Number of Seed Co-investment Partners 13
Number of companies funded 109
Amount committed through programme (Seed + Private sector) $151 m

Overview

The Seed Co-investment Fund (the Fund) is managed by NZVIF, and is an equity investment fund aimed at small to medium sized businesses at the seed and start-up stage of development which have strong potential for high growth.

The key objectives of the Fund are to enhance the development of angel investors and angel networks, stimulate investment into innovative start-up companies, and to increase capacity in the market for matching experienced angel investors with new, innovative start-up companies.

The Fund commenced in July 2005 and provides $40 million of matched seed funding to support the further development of early-stage investment markets. It operates as a co-investment fund alongside selected Seed Co-investment Partners.

Key Features of the Seed Co-investment Fund

  • A total of $40 million is available for investment through the Fund. As of August 2013 approximately $140 m has been invested.
  • The Fund co-invests alongside accredited investment partners.
  • Seed-stage and start-up investments are eligible for the Fund.
  • Investment occurs alongside selected private investor groups ("approved co-investors").
  • NZVIF will invest up to $4 million total per co-investment partner with the potential for a further $4 million subject to a partnership review.
  • Investments through the Fund are limited to a maximum investment of $250,000 in any one company or group of companies; with the possibility of follow-on capital investments up to a maximum investment in any company of $750,000, at the discretion of NZVIF.
  • 50/50 matching private investment is required for the Fund to invest.
  • The Fund acts as a direct investor on the same terms as the co-investment partner.
  • Any investments must be made in New Zealand businesses. A New Zealand business is defined as having the majority of assets and employees in New Zealand at the time that the initial investments is made.
  • The Fund excludes investment in financial intermediaries, property development, retailing, mining and hospitality industry businesses.

NZVIF Investor Representatives: Please sign in to join the Seed Co-investment Fund (SCIF) Investor Representatives Group on LinkedIn.

Back to top