COMMENT:

The Government plans to stump up $300 million to address a chronic funding gap in the venture capital market.

But while the market failure is pretty clear, the proposed policy fix is not without its critics.

Legislation now before Parliament's finance and expenditure select committee would establish a Venture Capital Fund (VCF) with two objectives.

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One is to get capital to promising innovative enterprises which have survived the start-up phase — nurtured by angel investors and seed capital from the New Zealand Venture Investment Fund (NZVIF) — and which need millions of dollars invested in them to grow and

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