27 May 2013

Market gap seen in funding for start-ups

7:04 am on 27 May 2013

The creator of a new fund that plans to invest in New Zealand start-ups, says there is huge gap in the market that needs to be filled.

The Punikaiki Fund hopes to raise $20 million - $50 million through an initial public offering.

Lance Wiggs, who is the principal of Lance Wiggs Capital Management, will become a director of the fund and also manage it.

He believes the fund will prove attractive to both businesses and investors.

Mr Wiggs said there is a new generation of companies coming through and the industry has constantly been hearing about a lack of funding.

"So we need to be there for the companies like Zero that are not listed, that are earlier stage ... so something like this needs to be in the market, so that's why we're doing it."

Although it's a brand new fund, Mr Wiggs says he has a proven track record - he helped list Trade Me on the stock market two years ago -and he hopes potential investors will recognise that.

The Punikaiki Fund will publish its prospectus towards the end of June or early July.