Taiwan, New Zealand agree joint green, biotech venture capital deal(2012/3/6)

March 6th, 2012 | Categories: 2012 | Tags:

TAIPEI — Representatives from Taiwan and New Zealand signed an investment agreement Monday to establish joint venture capital for the green and biotech sectors, making Taiwan the first country to enter such a deal with New Zealand.
With each party contributing 50 percent to the capital, the fund will collect up to NT$5 billion (US$169.5 million) from Taiwan’s National Development Fund (NDF) and the New Zealand Venture Investment Fund Ltd.

The fund will begin to accept applications from start-up companies in the two countries in the fourth quarter of this year, especially for those in the green, biotech and creative sectors, said Lin Huan, executive secretary of the NDF.

“The economic cooperation framework agreement (ECFA) signed between Taiwan and China has increased the New Zealand authorities’ willingness to form the strategic partnership with us,” Lin said at the signing ceremony.

“For companies in New Zealand, Taiwan has potential to become a second base of operations rather than just a springboard to the China market,” he said. “This means they are likely to set up operations here.”

Under the terms of the agreement, Taiwan and New Zealand will each invest in 30 percent of a qualified start-up, with the remaining 40 percent funded by the private sector.

The New Zealand Venture Investment Fund Ltd (NZVIF) was established in 2002 as a government-owned company responsible for accelerating the development of the New Zealand private equity and venture capital market.

The NZVIF currently has US$200 million in funds under management to stimulate investment in young technology companies.

The collaborative model of the joint venture capital could be extended to Japan and China, Lin added, as the NDF started a NT$200 million venture capital a few years ago with the Development Bank of Japan.

Lin said the NDF initiated the talks with some Japanese representatives in March last year, hoping to institutionalize the joint venture capital between the two countries.

“Our goal is to drive the capital market and regional industrial development in Asia with our joint efforts,” he noted.

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