NZ Super Fund backing the tech sector
POSTED ON: 5 December 2022
The New Zealand Super Fund (NZSF) will commit up to $70 million to a fund looking to invest in fast-growing, established New Zealand technology companies with the potential to scale to more than $100m in revenue.
The Movac Growth 6 Fund intends to invest in between eight and 12 companies, and expects the bulk of the fund to be deployed over the next five years.
Del Hart, Head of External Investment and Partnerships for the Guardians of New Zealand Superannuation, the manager of the NZ Super Fund, said the NZSF had been the largest investor in Movac’s Funds IV and V and the two entities had developed an open and constructive relationship over several years working together.
“Movac is an experienced technology investor with good access to deal flow and a track record of successful exits,” Ms Hart said.
Movac’s Mark Vivian said the New Zealand technology sector had proven its ability to produce internationally competitive companies of value and scale.
“According to the Technology Investment Network's latest report, New Zealand’s tech sector grew nine times faster than the rest of economy and generated $11.5b in export earnings, second only to the dairy industry,” said Mr Vivian.
“We’re delighted to have NZ Super as a cornerstone investor in our Growth 6 Fund. Historically, venture capital funds raised and deployed in times such as these have performed very well. Our deal flow is consistently strong and we’re excited about backing even more Kiwi tech entrepreneurs taking on global opportunities.”
The NZSF will commit 50% of the First Close fund target of $100m, with scope to increase that to $70m commitment, depending on Movac’s fund raising.
Movac is New Zealand's most experienced venture capital firm, providing support to Kiwi founders & leaders to help accelerate the growth of their tech businesses. For more than 20 years, Movac has been backing some of NZ’s most successful tech companies, with previous portfolio companies including Vend, Timely, Coretex, Unleashed Software, Aroa Biosurgery, PowerbyProxi and Trade Me. Existing portfolio companies include Dawn Aerospace, Tradify, Alimetry, Atomic.io, ZeroJet, KRY10, Tradify, Auror, and TracPlus.
The NZ Super Fund invests money on behalf of the New Zealand Government to help pay for the increased cost of universal pension entitlements in the future. By doing this the Fund adds to Crown wealth, improves the ability of future Governments to pay for universal pensions, and ultimately reduces the tax burden on future New Zealanders. A long-term, growth-oriented investor, the Fund has around NZ$60 billion (US$43 billion) in assets. The Fund is managed by a Crown entity, the Guardians of New Zealand Superannuation.