$100 million for start-ups ‘massive boost for innovation’
Simplicity KiwiSaver has committed to investing $100 million over the next five years into New Zealand companies seeking expansion capital.
It will invest the money into funds managed by Icehouse Ventures, a new company to be launched in May, designed to accelerate the growth and development of Kiwi companies with global aspirations. Icehouse Ventures will be co-owned between
The Icehouse start-up accelerator, Sir Stephen Tindall’s investment company K1W1, Simplicity and investment banking firm FNZC.
‘‘This is a massive boost for entrepreneurs and innovation in this country. Together we are unlocking KiwiSaver and managed New Zealand funds to get more capital flowing into the growth sector to provide more support for New Zealand startups taking on global markets,’’ said Icehouse chairman Chris Quin.
The Simplicity KiwiSaver money will be invested into funds managed by Icehouse Ventures, and will ultimately be invested into high-growth businesses seeking capital to grow.
Icehouse Ventures chief executive Robbie Paul said: ‘‘Our goal is to ensure a greater portion of the capital that high growth companies need, can be provided by New Zealanders.’’
Simplicity managing director Sam Stubbs said it was the first time a KiwiSaver fund manager was investing in a business dedicated to high growth New Zealand businesses. ‘‘This is a fantastic opportunity for our KiwiSaver members to tap into a broad range of New Zealand’s boldest and brightest companies,’’ he said.
‘‘Given the breadth and depth Icehouse Ventures has with companies starting up and expanding, we want to provide investment options for our members.’’
The capital Simplicity is pledging will enable The Icehouse to rapidly expand its work. Since it was founded in 2001, The Icehouse has overseen the investment of $106 million into 165 New Zealand companies with more than half this amount raised within the past four years.