The Government's move to allocate $300 million to venture capital has been welcomed by the industry and one player says it could help fund 50 to 100 Kiwi start-up businesses.

But Icehouse chief executive Andy Hamilton also said the challenge would be getting the private sector on board to match the investment.

The Budget announcement will see the Government divert $240 million of contributions to the New Zealand Superannuation Fund and combine it with $60 million of assets held by the Venture Investment Fund to improve access to capital for growing mid-sized businesses that struggle for growth.

"This will help