The first fund to directly target retail investors in the early stage technology investing space has failed to gain traction and fell short of its revised target of $5 million.
Punakaiki Fund director Lance Wiggs says the fund, which originally hoped to raise $20-$50 million, "wasn't even close" with about $3.3 million in commitments.
The Punakaiki Fund's approach of targeting retail investors for early stage investments was seen as unusual by both brokerage houses and many experienced investors. Early stage investing is seen as an inherently risky proposition and is typically a space occupied by angel investors and venture capital funds.
Mr Wiggs said there was a gap in the market.
However, early stage venture capital funds had traditionally found it hard to raise money in New Zealand and Mr Wiggs said the team had rejected going down the venture capital fund route. Instead, the fund was launched as an unlisted initial public offering.