Taiwan firm eyes Kiwi ventures

Taiwanese partners could provide useful advice to New Zealand firms about what mainland Chinese consumers really wanted. Photo / Getty Images

Taiwan's Paradigm Ventures is looking to invest up to US$40 million ($47.1 million) into New Zealand companies.

Representatives of the investment firm have been in Auckland this week as part of a visiting delegation of Taiwanese venture capitalists.

The group includes Paradigm chief executive and chairman Jonathan Chiang, great-grandson of former Taiwan President Chiang Kai-shek.

Paradigm's chief financial adviser, Antony Chang, said the company was looking to establish a fund of US$80 million, US$40 million of which would be spent in New Zealand.

Investments could begin as early as next year, he said.

Representatives of the company said they were interested in opportunities in industries including software, food processing, biotechnology and agriculture.

Taiwanese partners could provide useful advice to New Zealand firms about what mainland Chinese consumers really wanted, they said.

Chang said: "New Zealand can use Taiwan as a springboard to go to [mainland] China."

Paradigm, founded in 2000, has more than US$300 million under direct management and US$500 million invested with partners.

Most of its investments have been in the greater China region in sectors including aviation, agriculture, telecoms, IT and construction.

The delegation's visit was organised by the Government-backed New Zealand Venture Investment Fund (NZVIF) and NZ Trade and Enterprise.

Last year NZVIF signed a co-investment partnership with Taiwan's National Development Fund (NDF), which it said could invest up to $200 million into funds in Taiwan and this country.

Through the partnership, NZVIF and the NDF will invest up to $25 million each in any new venture capital fund in New Zealand or Taiwan.

Venture capital fund managers will have to raise 40 per cent of total fund capital from private sources.