Wellington investment firm Movac has raised $30 million for a growth fund it plans to invest in young companies poised for expansion.
The Movac 3 fund was seeded by Movac partners, a group of former Trade Me shareholders, and the New Zealand Venture Investment Fund, which will contribute $10 - $20 million, depending on the amount of private capital raised.
Managing partner Phil McCaw says that since signalling its intention to raise the new fund earlier this year it's been receiving one proposal a day and is now having to assess the significant backlog of proposals.
New Zealand Venture Investment Fund chief executive Franceska Banga says the last few years have been difficult for new venture capital funds looking to raise capital, and Movac's successful capital raising is a welcome boost to the venture capital sector.
The Movac 3 fund will be open to eligible investors until December.