How the New Zealand Business Growth Fund can help your start-up succeed
Starting a business is a challenging yet rewarding experience. As a start-up founder, you are likely to face several obstacles and hurdles before achieving success. However, with the right support and guidance, your journey to success can be much smoother.
This is where the New Zealand Business Growth Fund (NZBGF) comes in. The NZBGF is a government-backed initiative aimed at providing growth capital and advice to start-ups and innovative businesses.
In this article, we will explore the NZBGF and its benefits for start-ups.
What is the New Zealand Business Growth Fund?
The NZBGF was launched in 2019 with a $300 million investment from the New Zealand government. Its aim is to provide equity funding and expertise to start-ups and growing businesses in New Zealand.
The fund is managed by a private sector team with extensive experience in investing and growing successful businesses. The government’s investment is expected to be matched by private sector investors, with the total fund size reaching up to $1 billion.
What are the benefits of the NZBGF for start-ups?
The NZBGF provides start-ups with much-needed access to growth capital, which can help them overcome the challenges of scaling their businesses. The fund typically invests between $5 million and $50 million of growth capital, with the aim of helping businesses achieve their growth ambitions.
Apart from capital, the NZBGF also offers businesses access to a network of experienced investors and advisors who can help them navigate the complex challenges of scaling their businesses. The fund also provides governance and board support to its investee companies.
Who is eligible for NZBGF investment?
To be eligible for investment from the NZBGF, businesses must meet certain criteria. These include:
– Being a New Zealand-based company
– Having an annual revenue of between $2 million and $150 million
– Being able to demonstrate a growth opportunity that aligns with the NZBGF’s investment objectives
– Being able to provide a credible growth plan
The NZBGF invests in a range of sectors, including technology, healthcare, and manufacturing.
Case study: UBCO Bikes
One example of a start-up that has benefitted from the NZBGF is UBCO Bikes. UBCO Bikes is a New Zealand-based electric bike manufacturer that has developed a unique off-road bike that can be used in a range of environments.
The company received a $2 million investment from the NZBGF in 2020, which allowed it to expand its operations and bring its unique bikes to a wider market. With the support of the NZBGF, UBCO Bikes has been able to achieve significant growth and is now exporting its bikes to markets around the world.
Conclusion
The New Zealand Business Growth Fund is an essential resource for start-ups and growing businesses in New Zealand. Its provision of growth capital, expertise, and networking opportunities can help start-ups overcome the challenges of scaling their business and achieve significant growth.
If you are a start-up or growing business in New Zealand, it is worth exploring the opportunities provided by the NZBGF. With its proven track record of supporting successful start-ups, the NZBGF could be the key to unlocking your business’s growth potential.
