29 Oct 2013
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Cash-strapped Kiwi firms offered $200m in financing

New offshore investment capital reaching $200m is now available for New Zealand companies, according to Endeavour Capital Limited executive chairman Neville Jordan.

The Wellington-based venture capital firm is offering the finance to cash-strapped Kiwi firms in a bid to boost growth across the country.

Focussed on innovative companies requiring funding for “follow-on” purposes, Jordan claims this is the stage where companies have proven they can thrive but need serious funds for on-going research, business expansion and international growth.

According to Jordan, the new capital being offered helps fill the need for significant funding beyond the capacity and policies of angel investors and many of the local venture capital sources, while providing routes to the substantial markets of Asia and beyond.

The large gap for this type of investment has been highlighted on many occasions by both the angel investor and venture capital community.

Some thirty years ago I started my own technology company in New Zealand and conducted a very successful IPO on the NASDAQ Main Board; followed by starting two venture capital funds," Jordan says.

"Our offshore activity over many years has led to the development of very strong Endeavour networks in the USA, Asia and Gulf States.

"Investors in those regions, particularly from Asia and the Gulf States, have an appetite for investing in New Zealand and Endeavour will provide a NZ concentration point for these funds."

Networks of Asian investors will be co-ordinated via Endeavour Capital partners, Dr Hu Wei and Gavin Crombie, who both live in China and have a demonstrated ability to raise substantial capital from Asian sources according to Jordan.

"There are continuing demands for companies to be innovative in their products and services but funding options available to these companies tend to lag behind in the innovation stakes," Jordan adds.

"Rather than export our companies to secure funding, we will bring capital into New Zealand to keep local businesses here.

"Companies seeking the investment from abroad will need to demonstrate that they have proven management teams, understand governance and risk mitigation and deliver products or services that would benefit from offshore distribution networks, making good use of present and future Free Trade Agreements.

Jordan concludes that the investment selection process is continual, with investment reviews and decisions taking place on a rolling basis.

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