20 Apr 2011

New investment fund being set up

7:01 am on 20 April 2011

An investment firm behind Trade Me has set up a new growth capital fund to invest in New Zealand firms that are poised for expansion.

Movac is seeking to raise between $25 - $50 million and will contribute $10 million, with the New Zealand Venture Investment Fund committing another $10 - $20 million, depending on the amount of private capital raised.

The Venture Investment Fund has highlighted the need to set up new funds to ensure firms continue their growth and development.

Movac has been involved in start-up angel investments and managing partner Phil McCaw says this fund is a response to the work it's been doing.

He says the fund aims to invest in between eight and 10 technology firms that need capital to fund their expansion into export markets.

The company has approached institutional and private investors for funds and hopes to start investing in late May.