Elevate Venture Capital Fund to Receive $100 Million Boost in Budget
The state-backed Elevate venture capital fund is set to receive a substantial $100 million injection in the upcoming Budget, as part of the Government’s broader strategy to bolster high-growth technology companies with significant export potential. Finance Minister Nicola Willis unveiled the funding in a pre-Budget speech, emphasizing the Government’s commitment to lifting economic growth through increased productivity, exports, and the attraction of direct foreign investment.
Minister Willis outlined that the $100 million allocation will be sourced from two channels. A significant portion, $61 million, will come from this year’s government contribution to the NZ Super Fund, which currently oversees Elevate. The remaining $39 million will be a direct contribution from the government’s capital allowance. This financial boost aims to provide crucial support to start-ups, fostering innovation and expansion within the technology sector.
The Finance Minister highlighted the success of Elevate in backing promising ventures, citing examples such as Dawn Aerospace, a company developing reusable spaceplanes and satellite propulsion systems, and Halter, an agricultural technology company known for its smart collars for cattle. These companies exemplify the type of high-growth, export-oriented businesses that the Government aims to support through the Elevate fund.
Looking ahead, Willis stated, “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.” The additional funding aims to bridge this gap, ensuring the continued growth of New Zealand’s venture capital market and its ability to support future generations of innovative companies.
