New Zealand Venture Investment Fund (NZVIF) and its Taiwan counterpart National Development Fund committed around NZ$11 million (US$7.5 million) each towards this. The remainder came from Sparkbox, the Fund’s management team and private investors in New Zealand, Taiwan, Australia, Singapore, Hong Kong, and the US, it said in a statement.
New Zealand investors include Stephen Tindall’s K1W1, Diligent Founder Brian Henry, and a range of private investors with technology and finance backgrounds.
GD1 Fund II is a cross-border technology-focused fund with the majority of capital to be invested in New Zealand and Taiwanese startups with a focus on the US and Asian markets.
“Investors are showing faith in our proposition, which is to target early-stage software companies needing investment of between US$500,000 and US$2.5 million at the pre-Series A and Series A stages. We are typically investing into companies which already have revenues of US$1-3 million, customers in offshore markets, and a clear global competitive advantage,” GD1’s Chintaka Ranatunga said.
The Fund has made its first investment in sales automation SaaS startup Qotient. Co-founded by Justin Wright and serial entrepreneur Miles Valentine (founder of Zeacom), Qotient has offices and customers in Auckland, Sydney and San Francisco.
NZVIF Investment Director Aaron Tregaskis said: “Venture capital investment is at healthy levels but we always need new funds coming into the market to continue and build on the momentum which has been achieved. GD1 is occupying a niche in between where the angel market invests and where other VC funds target slightly larger investments.”
GD1 Fund II is currently open for investment until final close later this year.
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