$100m boost to government's venture capital fund announced

The Government is to pump another $100 million into the state-backed Elevate venture capital fund in next week's budget.

Finance Minister Nicola Willis said about two-thirds will come from this year's contribution to the Superannuation Fund, and the rest will be from the money allocated for capital spending.

In a pre-budget speech in Wellington, she said the investment was part of government support for new high-growth companies in areas such as space, software, and agricultural technology.

Willis said the budget will also include spending aimed at improving productivity, foreign investment, and exports.

Elevate is a "fund-of-funds" programme established in 2020. It is managed by Crown company NZ Growth Capital Partners on behalf of the Guardians of NZ Superannuation.

Prime Minister Christopher Luxon last week announced there would be a boost to capital spending in the Budget, but Willis has signalled spending will be tight and that there will be no "lolly-scramble".

Some experts have warned cuts to government's operating allowance might slow economic recovery.

More to come...

rnz.co.nz