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Home / New Zealand

Challenge to rich: bring out your cash

3 Aug, 2001 09:26 AM2 mins to read

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By ELLEN READ

A call has gone out for New Zealand's richest citizens to invest in venture capital.

Deutsche Bank New Zealand chief executive Scott Perkins laid down the challenge on the final day of the conference.

While acknowledging that the main problem in the local venture capital market was identifying ideas rather than financing, he suggested that the nation's 50 wealthiest cashed-up citizens invest 5 per cent of their worth in venture capital, thereby boosting the available funds by $500 million.

Mr Perkins said independent calculations showed that the total venture capital available in New Zealand was $794 million.

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The Government's venture-investment fund would soon deploy another $100 million, and there was also $300 million of outside investment.

"Add to that the fact that high net-worth New Zealanders have never been more cashed up than now," he said.

If the top 50 helped out, the total fund would be about $1.7 billion.

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Mr Perkins said he was issuing a call to arms, not just to the innovators, but to the wealthy to become involved in venture capital.

"Get active as mentors; get involved."

The Warehouse founder Stephen Tindall was already "a stand-out" in the field, he said.

Mr Tindall said he believed at least $500 million was available from wealthy New Zealanders.

He had contributed more than $100 million himself, but had heard that this was the most by far.

Most rich people were investing overseas and the others were only interested in New Zealand venture capital if there was a big kick in it for them, he said.

"So we have to find ventures that are going to help them let go of some money," said Mr Tindall.

"The New Zealand Seed Fund and NeuronZ [Auckland University's biomedical spinoff] prised a couple of them out."

Mr Perkins said Australasian venture capital markets were in good health and there had never been more venture capital investment in this part of the world.

"I seriously believe that we are on the verge of a venture capital awakening in New Zealand."

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