Published on the 11/04/2016 | Written by Newsdesk
Twenty-five Kiwi start-ups will gain more than just a financial injection from the new Tuhua fund…
The New Zealand-based venture capital investment group ICE Angels and its parent company The Icehouse have launched a $10 million investment fund called Tuhuna. But, it’s not just money that talks – it’s who you know that often makes the difference the fund’s partnership with The Icehouse will allow it “to provide unprecedented amounts of resource and support to start-ups”, according to a statement.
The fund has already backed three start-ups including Nyriad, a software company that rapidly compresses and streams data; Avertana, which has developed a unique chemical extraction process; and one other still to be named. It will invest in a total of 25 start-ups over the next three years.
ICE Angels CEO, Robbie Paul, said the objective of the fund is to become a game changer in how ICE Angels and The Icehouse impact start-ups.
“The team, as well as the 100s of investors that have invested with us into 97 Kiwi start-ups, have a burning and genuine desire to drive New Zealand forward by empowering globally competitive start-ups. Capital is not the only ingredient required to do so. However, this $10m fund is a potent addition to our expertise and world-class networks.”
The chosen start-ups receiving backing will have access to board observers through the ICE Angels First Cut Ventures team. They help to unburden start-up founders of administrative tasks, reach out to talent through their networks and leverage the insights they have gained from previous investments. They will also have access to The Icehouse workspace and team in Parnell, Auckland, which is supported by the Government’s Callaghan Innovation, among others.
Nyriad CEO, Matthew Simmons, highlighted the importance of the connections that the backing will bring. “The Tuhua fund has added another tier of high networking individuals with a vested interest in our company,” Simmons said.
As another example of the network at work, Tuhua investor and former Microsoft NZ Managing Director, Ross Peat, said the three companies receiving backing so far “are well supported by other local investors that we know well and have co-invested with over the past 12 years”.
Tuhua fund was established in November 2015 with seven cornerstone investors. The name means obsidian in Maori; a volcanic glass used to craft hunting blades with a cutting edge many times sharper than high-quality steel surgical scalpels. The Tuhua mission is to provide entrepreneurs tools and the idea of ‘unpolished gems’ is also appropriate as $4 million of the $10 million will be invested into seed stage start-ups that are still “rough around the edges”, said Paul.
