How the New Zealand Business Growth Fund Can Boost Your Small Business

How the New Zealand Business Growth Fund Can Boost Your Small Business

Starting and running a small business is no easy feat. Besides the financial investment and operational risk, there are many hurdles to overcome, such as finding the right customers, competing with established brands, and scaling the business to meet future demand. However, one way small businesses in New Zealand can get a leg up is by partnering with the New Zealand Business Growth Fund (NZBGF).

What is the New Zealand Business Growth Fund?

The New Zealand Business Growth Fund is a government-backed investment platform designed to provide patient capital and expert guidance to high-growth small to medium-sized businesses in New Zealand. The NZBGF is a $300 million fund that was established in 2019 to provide longer-term equity capital to businesses struggling to raise capital from traditional sources. The fund has a target of investing in up to 20 businesses over its initial five-year investment horizon, and to date has committed $135 million of its capital to businesses across various sectors.

How does the New Zealand Business Growth Fund benefit small businesses?

The NZBGF is a partner, not just a provider, of capital. As a result, it seeks to add value beyond just capital injection by providing experienced board members, industry connections, marketing and organizational advice, and resources to help businesses scale up and achieve their growth ambitions. Also, unlike traditional venture capital firms or private equity funds, the NZBGF does not seek to exit the business in a few years but instead aims to hold a minority stake for a more extended period of five to seven years to facilitate long-term growth.

Who is eligible to receive funding from the New Zealand Business Growth Fund?

The NZBGF is open to high-growth businesses located in New Zealand that:

• Have products or services that are innovative and differentiated
• Have a strong management team with experience and vision
• Are targeting sustainable and growing domestic and international markets
• Have high-quality financial and governance structures
• Strive to have a positive environmental, social, and governance impact

What are some examples of successful businesses that received funding from the New Zealand Business Growth Fund?

Some businesses that have received funding from the NZBGF include:

• Bird+ Stone: A digital-first jewelry brand that sells ethically-sourced and affordable jewelry. The NZBGF invested $6 million in Bird+ Stone in February 2021 to allow the company to expand globally.
• Cin7: A cloud-based inventory management software. The NZBGF invested $15 million in Cin7 in October 2019 to help the company capitalize on its strong customer demand in the US and across the Asia Pacific region.
• Pukeko Pictures: A multi-award-winning digital studio that creates world-class animation content for global audiences. The NZBGF invested $12 million in Pukeko Pictures in May 2020 to allow the company to expand its content library and production capabilities.

Conclusion

In conclusion, the New Zealand Business Growth Fund presents a unique opportunity for high-growth small to medium-sized businesses in New Zealand to receive long-term, patient capital and expert guidance from seasoned business professionals. By partnering with the NZBGF, small businesses in New Zealand can gain access to a range of resources that can help them grow, scale up, and succeed in domestic and international markets. So, if you have a high-growth business that meets the NZBGF’s eligibility criteria, consider applying for funding and becoming a part of this game-changing initiative to boost your small business.