PROJECT: CLOSING THE $2 BILLION GAP

We need to attract NZ$2 billion of new investment for young New Zealand companies, over the next 10 years. That’s $200m a year; $2m each for a 1000 companies.

The challenge for the investment community is where that money will come from. There are a range of possible sources of new investment capital – from wealthy migrants to international funds, to New Zealand insitutions and investors, to the Kiwisaver industry. And the venture capital sector needs to be building new investment products that attract greater investor interest.

Over the last 10 years, we have seen a big shift in interest and understanding of the market. Venture capital investing is an increasing returns game – the more you do it the better you get. The 100th deal is more likely to succeed than the first deal. On that basis, we can be optimistic about the next 10 years.

And if we tap new capital sources, and provide the right suite of investment opportunities, we can attract $2 billion for aspiring NZ companies.