Photo: 123RF
Active venture capital firm Icehouse Ventures has closed out its largest ever growth fund with $122 million to invest in 20 late-stage start-up technology companies.
More than 600 investors supported the new fund, ranging from angel investors, high net worth individuals, and a number of large institutional investors, including three KiwiSaver funds - Simplicity, PIE Funds, and Generate.
"These investments mean hundreds of thousands of Kiwis will have a stake in New Zealand's private tech sector, and can share in the rewards of its future growth," Icehouse chief executive Robbie Paul said.
"This is the first time three different KiwiSaver managers have invested in a venture capital fund, whose collective investment ($40m) represents a third of the total fund," Paul said.
Growth Fund II builds on the success of Growth Fund I's $110m which had been full deployed, with nearly 200 investors from Fund I invested again in Fund II.
Paul said Growth Fund II saw a flurry of new investments on the last day of 2024, with some investors adding more than a million dollars to the fund.
Craigs Investment Partners, Harbour Asset Management (also an investor in the first fund), two iwi wealth portfolios, and two more community foundations each backed the fund in its final months.
"We were delighted to exceed our target in a challenging fundraising environment," he said, adding it would support some established high-growth, start-ups, including Halter and Crimson and others.
"It is a great time to have lots of dry powder - $150m across our seed and growth funds," Paul said.
"Relative to frothier times where more funds were investing, valuations are lower, terms are more reasonable, due diligence timeframes are longer, and projected burn rates are more balanced."
The Growth II fund brings total funds under management at Icehouse Ventures to $454m, with $100m in returns in 2024, and $500m total investments, including co-investment in 346 companies.
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