SCIF looking for co-investors

New Zealand Venture Investment Fund’s Seed Co-Investment Fund (SCIF) is currently looking for approved co-investors.

If you are involved with an angel investment network or fund, the New Zealand Venture Investment Fund Limited would be interested to talk with you about a co-investment relationship. SCIF enter into co-investments alongside “approved Co-investors” through our $40 million Seed Co-investment Fund (Seed Fund) to invest into young companies at the seed and start-up stages. The SCIF partners choose the companies, decide on the details of each investment, and work with the ventures to help them grow and ultimately exit. The Seed Fund is there to support these partners as a passive co-investor.

SCIF invests to a maximum of $500,000 in any eligible company (or group of companies). Co-investment partners must, at minimum, match the amount invested by NZVIF, in each investment.

NZVIF is inviting private investors, investor networks and funds who would like to make an application to become an approved Seed Fund Co-investor to submit written proposals.

The evaluation process takes approximately three months and includes a desktop evaluation, a site visit, and detailed due diligence on the capabilities of the potential investment partner. If successful, a co-investment partnership will be offered by NZVIF.

NZVIF is also looking for expressions of interest from potential partners who would like more information on the requirements of becoming an approved Co-investor.

Process

This is a contestable process and NZVIF is looking for applications from potential Co-investment partners which demonstrates their experience, credibility, commitment and professionalism in early stage investing in New Zealand.

If you’re interested in applying, contact either Chris Twiss or Richard Palmer in the first instance to indicate your interest.

You’ll then be asked to submit an application that addresses the following areas:

1. Is the proposed angel investment structure a ‘best practice’ commercial and legal structure? The proposal should adequately describe how the applicant intends to govern and manage its operations.
2. Explain how the proposed structure is commercially and sustainably viable in the medium term.
3. Does the applicant have in place adequate processes and systems across all stages of the investment process – sourcing deals, due diligence, negotiating terms, managing investments, etc?
4. Provide a full explanation of the decision making process including details of the key investment personnel, investment committee, and any other parties who will have a role in investment decisions.
5. Does the applicant have a credible board and investment management team (or individual) who understand and have experience in running an early stage company investment business?
6. Does the applicant have access to credible and experience investors who understand investing in seed and early stage companies?
7. What sort of track record and investment strategy does the applicant have in terms of making money in early stage company angel investing?
8. Does the applicant have the necessary experience with co-investing and deal syndication to ensure access to capital and markets in New Zealand and offshore?
9. Does the applicant have an extensive pipeline of potential investments?
10. Is at least $5m of private sector capital available over a 3-4 year period for co-investment with the Seed Fund?

Applications close on 27 August 2010.

For more informatio, see the official Call for Applications.