Elevate commits up to $25m into Movac Emerge Fund 4

/ Elevate / Press Announcements / 28 Jun 2023 / Katie Hickmer

Elevate plus movac banner

Wednesday 28 June 2023

 

Elevate NZ Venture Fund (Elevate) is committing up to $25 million into Movac Emerge Fund 4, a new deep-tech early-stage fund managed by veteran Movac partner David Beard. 

 

The initial Elevate commitment is $15 million at first close with potential to increase to $25 million based on the fund’s final close size. The fund is targeting a final close of $50 million.

Elevate’s Chief Investment Officer James Pinner highlighted David’s significant deep-tech investment track record including successful exit outcomes for ASX-listed Aroa Biosurgery, and PowerbyProxi, which was acquired by Apple.

“David is one of New Zealand’s most experienced active managers, and he brings a huge amount of knowledge and passion for deep-tech.  Supporting more New Zealand deep-tech investments is a focus for NZGCP and we are excited to support the establishment of Movac’s new deep-tech fund with such an experienced and successful investor at the helm. This new deep-tech focused fund complements Movac’s existing fund activities and leverages the skills and experience of the broader Movac group. Movac is New Zealand’s longest standing and most successful venture capital manager.

“While sectors like software have been raising capital with relative ease in recent years, deep-tech and emerging technologies still face a capital gap at the early commercialisation stage.  Developing New Zealand’s depth and expertise in this part of the early-stage investment sector will help transform great science into successful technology companies.”

David Beard said that after achieving a first close milestone of $30 million, Movac Emerge Fund 4 fundraising is expected to continue through to December towards the final close target of $50 million.

“Ahead of final close, we are already looking to invest into a healthy pipeline of projects.  I will be leading the fund’s investments alongside Cassie McAdams and Rob Shaddock with support from the broader Movac team.”

“Our mission is to identify and invest into deep-tech start-ups covering various thematics including but not limited to hi-tech manufacturing, biotechnology, medtech, cleantech, food security, AI/automation and productivity technology who use ground-breaking science and engineering to solve global issues. We have been very successful in the past helping to turn New Zealand innovation into highly successful companies.”

“The success of this fund will also be great for the wider ecosystem. Start-ups create a significant number of high value jobs, as well as strong economic and export value while capitalising on existing public investment into research, science and innovation to help diversify our economy.”

The Government established Elevate in 2020 as a $300 million fund-of-funds programme to fill the capital gap for high-growth New Zealand businesses at the Series A and B fund raising stages.  It is managed by NZGCP with oversight from the Guardians of New Zealand Superannuation.

Mr Pinner said that if the full $25 million is invested, Elevate will have committed $223 million into nine venture capital funds. Each of these nine funds has raised significant amounts of private capital alongside the Crown investment and, at final close of Movac Emerge Fund 4, the total amount raised by these funds is expected to exceed $750 million.

After this investment, Elevate will have approximately $50 million left to invest in this current vintage.

Elevate’s previous eight underlying funds have now made over 100 investments, including companies like Dawn Aerospace, Mint Innovation, Partly, Halter, Foundry Lab, Quantifi Photonics, Alimetry and Zenno Aeronautics. Mr Pinner said all of the funds still have capital to invest into follow-on investments. 

 

NZGCP media contact: David Lewis 021 976 119

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