Greens want to establish a Govt backed venture capital fund

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Greens want to establish a Govt backed venture capital fund

Postby Malcolm » Tue May 13, 2014 2:53 pm

https://www.greens.org.nz/press-release ... tment-bank

Essentially the lack of venture capital for NZ firms is stifling potential economic growth here in NZ. They want to establish a fund to target growth in clean/green technology initially paid for by increased levies on mineral rights. Seems like a good policy and even had a positive reception from the banking/finance industry. The oil/coal industry however doesn't like it.
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Re: Greens want to establish a Govt backed venture capital f

Postby aardvark_admin » Tue May 13, 2014 4:18 pm

Actually, there is quite a bit of VC out there -- but it goes to the wrong people/companies.

If you've got an "already successful" company that is prepared to pour just $300K of your own money into R&D then the government will look very favourably on you when it comes to *giving away* taxpayers money by way of "grants".

Ridiculous -- it's not the "already successful" companies that need a hand-up -- it's the startups that have great ideas but no cashflow or profits.

But then again... I wonder how many of those "already successful companies" will be offering post-political-employment "directorships" to the politicians who support this "money for the rich" R&D funding scheme?

I have a sneaky feeling that our politicians know which side their bread is buttered on and they're looking out for #1 first, last and always.
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Re: Greens want to establish a Govt backed venture capital f

Postby Screw » Tue May 13, 2014 4:34 pm

Been the case for ever and a day. Banks won't lend to start-ups, they tell you to go and get the business going then come back and they will lend you the money. Kind of defeating the purpose of the loan in the first place. Nothing has really changed. The Greens idea is a good one but will it fly?
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