Gerry Brownlee, Minister for Economic Development made an announcement that he would guarantee $40 million, to be offered to the New Zealand Venture Investment Fund’s venture capital program, so as promote more private investment or spending into new business enterprise capital funds.

Mr. Brownlee said that the Government’s main idea was to increase the level of innovation in the economy of New Zealand, which acts as the main economic steering force.

He said that a lot of innovative firms require risk capital from the capital markets of the nation, so that they can do well and get success.

The nation has a developing venture capital sector, however, developing it further was necessary, so as to offer continued support to the Government that further helps attracting added private capital.

The venture capital program has been guaranteed $40 million that offers NZVIF the suppleness, which it desires to have at this point, so that, it, can go ahead and invest into venture capital funds of the private sector.

Up to now, the venture capital program has had positive effects upon the economic scenario. Between the year 2003 and 09, the investments made by NZVIF was around $75 million via six venture capital fund managers into almost 48 sprouting firms of the nation.