Punakaiki Fund seeks $50m for NZ tech investment

Investment company Punakaiki Fund is seeking up to $50m to invest in New Zealand’s internet and technology sectors.

Announced today by founder Lance Wiggs, co-founder of Pacific Fibre, the Fund has released its prospectus for an initial public offering, hoping to raise a minimum of $20m.

But with an ability to accept over-subscriptions of up to an additional $30m, the total could hit $50m.

The Fund intends to invest in early stage and emerging New Zealand internet, technology and design-led growth businesses, generally well before they reach the public markets.

The minimum investment for the offer is $2,000, making an investment in Punakaiki Fund accessible to a wide range of New Zealanders.

“We want Punakaiki Fund to be the investor of choice for founders of the next generation of innovation-led New Zealand companies,” says Lance Wiggs, a director of Punakaiki Fund, an early advisor to Trade Me and an investor in Vend.

“We see ourselves as part of the start-up and growth stage business community, and we intend to work collaboratively with founders before, during and after investments.

"We expect to offer very fair and simple investment terms, and, like the greatest investors, are committed to investing for the long term and so are not looking for premature conversations about exit strategies.”

Punakaiki Fund has already received strong interest, with over 450 members of the public expressing an interest in investing over $7.7m through the pre-registration website.

“We are confident in the number and quality of privately-held high growth companies in New Zealand," Wiggs says.

"We also see that any well-diversified portfolio should have a mix of asset classes, and believe that Punakaiki Fund is essentially alone in this space for public investors.

“This is unashamedly a high risk, long term capital return investment category, and we are not offering short term dividend streams.

"We will aim to focus on investing where we can help founders and management teams steadily build toward the billion dollar businesses that the late Sir Paul Callaghan rightly identified that New Zealand needs.”

One of Punakaiki Fund’s two independent directors, Wayne Hudson believes the economic potential for New Zealand from innovation-based growth is exciting, with the fund aiming to help accelerate such growth, helping to write a new generation of business success stories in the process.

Lance Wiggs Capital Management will manage Punakaiki Fund's investments, with principals of LWCM, both Wiggs and Chris Humphreys holding extensive experience of founding, investing and advising emerging technology, internet and design-based companies.

Fellow independent director Sandy Majer believes Wiggs and Humphreys bring strong financial and business qualifications and experience, but, unusually, also have hands-on experience with early stage companies.

"Lance has been very actively involved as a founder, advisor and investor in the target internet, technology and design-led sectors, and his networks will drive Punakaiki Fund’s early investments," Majer says.

Punakaiki Fund has not sought assistance from the Government-backed Venture Investment Fund (NZVIF), with Wiggs adding: “We’ve therefore given ourselves the ability to operate far more effectively and simply, and see this as a strong competitive advantage when it comes to investing in what we think are the best companies.”

The offer will open for applications on August 30, or later if FMA extends the 'consideration period', and close on October 2.

Investors must receive a copy of the Offer Document before subscribing under the offer.

After completion of the offer, Punakaiki Fund is not listing on the NZX, but will instead offer a share trading facility through Link Market Services.