The New Zealand Growth Capital Partners’ (NZGCP) Elevate New Zealand Venture Fund is committing NZ$14 million (US$10 million) into the Finistere Aotearoa Fund, which will target agri-food technology companies needing Series A and B investment. The fund will match Elevate’s commitment at least dollar-to-dollar with private capital. At first close at least US$28 million will be available to invest into agri-tech investments in New Zealand-connected entities.
According to a news report, the Finistere Aotearoa Fund will focus on commercialising New Zealand’s robust technology and intellectual property pipeline. The Fund is a subsidiary of Silicon Valley venture capital fund managers Finistere Ventures.
The Economic and Regional Development Minister, Stuart Nash, welcomed the new Elevate commitment. “The government’s Agritech Industry Transformation Plan was launched last year. In that, we highlighted that investment was a key constraint for the sector, so we welcome the creation of this specialist fund and look forward to its productive contribution to New Zealand’s transformation.”
The New Zealand government’s investment and commitment to a zero-emissions national agriculture strategy has turned the country into a centre for agricultural excellence, according to Arama Kukutai, co-founder and partner of Finistere Ventures. The New Zealand operation will be managed by long-time investment manager Dean Tilyard and based in Palmerston North. Finistere Ventures has a global agri-tech focus with offices in the United States, Ireland, and Israel.
New Zealand has become a world leader in agricultural research and innovation focused on curtailing the environmental impact of agriculture. “Having a strong local presence in Aotearoa has long been on our agenda. We are excited to partner with NZGCP to support the global commercialisation of New Zealand’s most promising agri-food technology advancements,” Kukutai stated.
NZGCP was established by the New Zealand government. As per its website, NZGCP aims to stimulate a well-functioning capital market for early-stage technology companies. Its investment vehicles are designed to stimulate private investment into this space through fund of funds and co-investment models.
Finistere Ventures is aiming for a final close of NZ$42 million (approximately US$30 million), which if achieved would see Elevate’s contribution rise to NZ$21 million (US$15 million). James Pinner, the investment director of Elevate, said, “Finistere and Dean Tilyard established Sprout, a Callaghan tech incubator based in Palmerston North with a strong agri-tech focus, and the fund has a number of existing New Zealand investments including BioLumic, Invert Robotics, and CropX – all three have also been supported by NZGCP via our Aspire fund.”
The Aspire Fund is one of two NZGCP investment vehicles created to promote private investment. The Aspire Fund does this through partnering with other private investors to make direct investments into early-stage (proof of concept and seed stage) companies. The Elevate Fund does this through using best practice fund of funds management to invest into venture capital firms looking to fund New Zealand companies at the Series A and B stages.
The group is also involved in a range of market development initiatives alongside investors, New Zealand Private Capital, and the Angel Association of New Zealand. It has a market development mandate and seeks to partner and collaborate with a wide range of government bodies and private investors. It intends to help develop the early-stage New Zealand investment market and ultimately help early-stage New Zealand companies grow.
