Wellington, Sept 16 NZPA - Up to $8 million will be invested into start-up businesses under a partnership between a new Nelson-based angel investment group, Venture Accelerator, and the crown owned New Zealand Venture Investment Fund (NZVIF).

Venture Accelerator is a top of the South Island angel group of 20 private investors established to help early stage companies grow.

It developed out of a 2005 initiative of the Nelson Regional Economic Development Agency, in conjunction with New Zealand Trade and Enterprise.

Venture Accelerator chief executive Mark Houghton-Brown said the group had a passion for the sustainable development of the regional economy and would focus on innovative companies offering significant and progressive solutions where the investment could add significant value.

"New Zealand is generating wonderful innovation but many prospective start-up companies struggle to get their ideas to market successfully because of the difficulty in finding willing partners with the contacts and the capability to assist them.

"At the same time individual investors often find it difficult engaging with local entrepreneurs in a satisfactory way because of the lack of infrastructure and support. The opportunities for both sides are considerable."

NZVIF chief executive Franceska Banga said that under the partnership, both Venture Accelerator and NZVIF would each invest up to $4 million into high-potential companies.

The partnership increased the capital available for new start-up businesses in the Top of the South Island and throughout New Zealand.

Venture Accelerator brought considerable business and entrepreneurial experience, and was looking to be very active in searching for and investing in exciting new companies, she said.

"While the group is Nelson-based, it has close links with angel investor groups in other centres and has already been involved in co-investment projects throughout New Zealand. These groups connect start-up ventures with willing investors to facilitate the funding and success of emerging companies."

Venture Accelerator's partnership with NZVIF is through NZVIF's Seed Co-Investment Fund.

Through the fund, NZVIF partners with groups like Venture Accelerator to invest in early stage businesses with strong potential for high growth.

It was the ninth partnership NZVIF had entered into through the Seed Co-Investment Fund and through the partnerships joint investments totalled over $16 million with 18 companies.

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