Representatives from Taiwan, NZ sign accord on investment
October 19, 2012, 4:22 pm TWN
TAIPEI -- Representatives from Taiwan and New Zealand have inked an investment agreement to commit up to US$164 million to venture capital funds in the two countries.
The agreement, signed Wednesday, will see the New Zealand Venture Investment Fund and Taiwan's National Development Fund each investing up to US$21 million into new venture capital funds in Taiwan and New Zealand, according to a statement released by the New Zealand fund.
The venture capital fund managers will be required to raise 40 percent of the total capital from private sources, according to the statement.
Franceska Banga, chief executive of the New Zealand fund, said in the statement that the partnership could see up to five venture capital funds established to invest in high-growth companies from the two countries.
"Our economies are complementary. Taiwan is New Zealand's eighth- largest export market and already an important source of investment," said Banga.
"It has a strong venture capital sector and has made considerable progress in developing its high-tech sector across a number of industries, including most recently, green technology," she said.
Auckland Mayor Len Brown, who is leading a trade delegation to Taiwan, called the joint capital fund "unique."
The unique fund "shows the fact that we are excited about the potential of two small global neighbors supporting each other in their endeavors to become economically sustainable," Brown told CNA.
The fund will be established for five years. Any venture capital project will invest at least half of the funds in Taiwan-related companies and half in New Zealand-related companies.