New Govt service launched to raise capital investment

  • Steven Joyce
Economic Development

Economic Development Minister Steven Joyce today launched a new Government service in Auckland to help businesses raise capital and accelerate their international growth.

New Zealand Trade and Enterprise’s Better by Capital service is one of 50 initiatives in the Government’s Business Growth Agenda, Building Capital Markets.

“To achieve the Government’s target of increasing our exports to 40 per cent of GDP by 2025, it is estimated New Zealand will need to increase collective investment in export industries by 70-90 per cent on current levels,” Mr Joyce says.

“If we want more jobs and higher incomes then the New Zealand economy needs a lot more investment, including from overseas investors.”

The step to becoming an international business generally requires new capital for expansion, acquisition or joint ventures. Companies need access to capital across all stages of the business lifecycle to achieve their growth objectives.

Better by Capital was developed following research commissioned by NZTE which found that some potentially high-growth firms find it difficult to access capital. Reasons include

  • Companies often don’t know the value capital options can offer
  • Some firms, particularly high tech firms with largely intangible assets, lack the collateral and cash-flow to obtain and service debt finance.
  • Firms lack the capability to source and manage capital.
  • A shortage of capital intermediaries (fund managers, angel investors, high net worth individuals) with the skills required to raise risk capital and invest it in internationally-focused, high-growth firms.
  • A lack of information for firms about the capital raising process and for the investor community on good investment opportunities.

“Better by Capital will be available to NZTE customers and NZTE will work with companies to develop a tailored capital plan as early as possible which will identify the work a company needs to do to get ready for capital,” Mr Joyce says.

“To reinvigorate our capital markets and build a stronger and more productive economy, we need to attract significantly overseas investment in this country. Well-functioning capital markets are essential for our businesses to grow and create jobs that support New Zealand families.”