Closing Out 2025: Building New Zealand’s Patient Capital Platform
As we approach the end of 2025, we reflect on a year of deliberate progress for Punakaiki Fund.
During the year, we have continued to invest with conviction, realised our largest exit to date, returned capital to shareholders, and strengthened alignment with our long-term investor base.
Conviction investing in action: increasing our stake in Couchdrop
In November, we increased our ownership in Couchdrop to 25.1 percent. Couchdrop has been PFL’s fastest growing company of 2025, and when the opportunity arose to acquire additional shares, we moved decisively.
The Christchurch-based software company is the modern SFTP platform for b2b file transfers, file-based automation, and data flows – simple, secure, and built for the cloud. We originally invested in Couchdrop in 2022, taking a 17 percent stake.
Founder Michael Lawson is a repeat entrepreneur. We previously invested in his first company, Linewize, an education-focused internet safety business that was acquired by Australian cyber safety vendor Family Zone in 2017.
Punakaiki Fund is currently the only fund invested in Couchdrop and holds a uniquely large stake in the company. This reflects the quality of the business, the advantages of our evergreen structure, and our philosophy of partnering with values-aligned founders who are building globally ambitious companies.
This approach sits at the core of how PFL seeks to generate long-term outperformance. We focus on identifying high-quality companies early, then backing winners as conviction grows. Over time, the ability to double down on the strongest performers is a key driver of venture returns.
The follow-on investment triggered an updated valuation for Couchdrop and contributed to a broader uplift across the portfolio, alongside valuation updates for several other holdings. As at publishing this post, we are also progressing multiple investments through our due diligence processes.
2025 in perspective
Stepping back, 2025 has been a year of steady execution. During the calendar year we:
Realised our largest exit to date with the acquisition of Quantifi Photonics by Nasdaq-listed Teradyne Inc., marking our fifth major exit and a strong validation of long-term capital commitment to this business.
Invested in Sea-Flux, demonstrating our conviction of business-critical software in niche, globally addressable markets.
Made follow-on investments into Projectworks, Couchdrop, and Whip Around
Continued to build a concentrated portfolio of 17 active companies
Increased Asset Value to $123.6 million, while also returning $8.7 million to shareholders via the November dividend
These outcomes reflect a consistent pattern. We are adding new companies selectively, backing our strongest performers, and acting as patient, long-term supporters so they are empowered to continue growing over time.
Deploying capital with intent
2025 was the first time since 2021 that Punakaiki Fund has held material cash, primarily from the Quantifi Photonics exit proceeds and increased capital raising activity, in particular via the Active Investor Plus Visa programme.
A significant portion of this capital is already allocated. We are progressing two investments currently in the late stages of due diligence, with some expected to close before the end of 2025. We are also deploying capital to initiate our treasury stock programme, which is designed to steadily improve liquidity for shareholders.
Maintaining flexibility at this point in the cycle allows us to move quickly when conviction opportunities arise, support our highest-performing companies, and actively manage liquidity. Our objective is not to hold cash, but to deploy it deliberately in ways that maximise long-term value for shareholders.
Looking ahead to 2026
Punakaiki Fund enters 2026 focused on disciplined execution. We are progressing new investments, backing conviction where we see it, and continuing to evolve the platform as it scales.
Our intent remains unchanged. We are scaling New Zealand’s patient capital vehicle, with a growing portfolio, improving liquidity pathways, and a long-term investor base aligned with that ambition.
Punakaiki Fund is a New Zealand-focused venture capital investment company, managed by 2040 Ventures, investing in high-growth, revenue-generating technology companies.
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