New Zealand venture capital firm Global From Day 1 (GD1) has raised $56.7 million in the first close of its latest fund, with investors under the country’s Active Investor Plus (AIP) scheme contributing about 20% of the amount.
According to a report by the New Zealand Herald, GD1 co-managing partner Vignesh Kumar said he was confident the firm could reach its $150 million target for Core Fund II, matching the size of its previous fund.
The AIP scheme, introduced in April last year, has become an increasingly important source of capital for New Zealand’s venture capital sector. Kumar said GD1’s AIP investors included “leaders and early-stage employees from companies like Google, Apple, TSMC, Nvidia and SpaceX”.
Kumar did not identify individual investors, citing privacy reasons.
Returning investors JB Were and Harbour Asset Management have also provided significant backing as anchor investors in Core Fund II, as reported by the New Zealand Herald.
Although GD1 plans to continue raising capital for the fund into next year, it has already begun deploying money from the first close.
According to a report by the New Zealand Herald, investments have been made in Outlier Space, a reusable satellite start-up founded by Rocket Lab alumni Jamie France, as part of its recent $12.8 million funding round. GD1 has also invested in Atomic Tessellator, an early-stage company using artificial intelligence to identify synthetic alternatives to rare earth elements.
The fund has additionally backed two other start-ups that remain in stealth mode.
GD1's earlier funds have invested in a range of New Zealand technology companies, including Dawn Aerospace, Auror, Ivo, Vessev and VXT. Tauranga-based electric motorbike company Ubco, however, was among its higher-profile unsuccessful investments, the New Zealand Herald has reported.
The AIP scheme offers investment categories requiring $5 million in the Growth category and $10 million in the Balanced category.
According to an April update from Immigration Minister Erica Stanford, 609 applications covering 1,988 people had been received during the scheme’s first year. About $1.49 billion had already been invested, with another $2.415 billion in the pipeline.
Within the AIP Growth category, $147 million had been committed to venture capital, alongside $899 million in private credit, $97 million in infrastructure, $57 million in private equity, $17 million in diversified investments and $10 million in fund-of-funds investments, the New Zealand Herald has reported.
Kumar said the Government could do more to encourage AIP investors to contribute to New Zealand’s knowledge economy by supporting more institutions focused on research and commercialisation.
He pointed to the University of Auckland’s Bioengineering Institute as an example of how research centres can help create technology businesses, including medtech companies such as Alimetry and Kitea Health.
“All of these AIP folks, we don’t want them to view New Zealand as a hedge. We want them to view New Zealand as a long-term home, where they actually have a place in the economy,” Kumar said, as quoted by the New Zealand Herald.
GD1 is not the only New Zealand venture capital firm benefiting from AIP investment. Movac's Growth Fund 7 secured a $185 million first close in June, with general partner Mark Vivian saying AIP investors had contributed $67 million, the New Zealand Herald has reported.
Icehouse Ventures and Bridgewest Ventures have also reported significant first closes this year, raising $40 million and $55.3 million respectively for their latest growth funds.
According to a report by the New Zealand Herald, the developments come as New Zealand’s venture capital sector continues to recover from the post-pandemic slowdown. Venture capital investment in the country rose 61% to $745 million last year, supported by the AIP scheme, growing interest from KiwiSaver funds and easing interest rates.
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