- Budget to put extra $100m into state backed Elevate venture capital fund
- NZ Super Fund to put $61m from this year's government contribution, government a direct $39m investment
- Elevate is a fund of funds, invests with private investors backing tech companies
- FinMin Willis says budget will have measures to improve productivity, foreign investment and exports.
The state backed Elevate venture capital fund is to get a $100 million injection in next week's Budget as part of government measures to boost high growth technology companies with strong export potential.
Finance Minister Nicola Willis announced the allocation in a pre-Budget speech focused on government measures to lift economic growth through lifting productivity, exports, and encouraging direct foreign investment.
"The short-term goal is to increase start-up funding. The long-term goal is to help build a self-sustaining venture capital market in New Zealand in which returns from previous investments fund future investments."
Willis said $61 million from this year's government contribution to the NZ Super Fund, which oversees Elevate, with the remaining $39 million a direct contribution from the government's capital allowance.
Photo: RNZ / Samuel Rillstone
She said Elevate has backed successful companies including Dawn Aerospace, a developer of reusable spaceplanes and satellite propulsion systems, and agricultural tech company Halter, which produced smart collars for cattle.
"In time, the Elevate fund is expected to become self-sustaining with the returns from previous investments funding future investments. However, the fund is not yet self-sustaining."
Willis gave no details on other spending to lift productivity, which she said was low by historic and international standards, nor what steps would be taken to attract more foreign investment, or boost exports.
