We’ve constructed a diversified and maturing portfolio of fast-growing kiwi tech companies delivering sustained growth and outsized returns.
We aim to invest in the most promising early-stage, high-growth NZ tech companies, and to meet the capital needs of the underfunded ecosystem.
Our mission is to provide investor access to New Zealand’s technology ecosystem while delivering outsized returns over the long-term. We’ve delivered 25.8% annual IRR from investments since we tightened our mandate in 2019 and an overall gross IRR of 20.6% since inception (before fees and expenses).
We’re an evergreen fund. That means we invest to hold and help companies grow for longer. We have $96m of assets under management (as at December 2022). Our top 10 investments represent $80 million, or 85%, of the investment portfolio value (as at 30 September 2022) and include several market leaders and disrupters.
No fixed fund realisation date, allowing returns to be reinvested and deliver outsized returns over the long term. Provides visibility of what you’re investing in, unlike traditional, fixed-term structures.
Diverse management team and Board with international, multi-industry experience and networks. Disciplined capital allocators. One of only three VC’s that has been active in New Zealand since 2013.
Our mission is to unlock access to NZ tech for equity investors. We’re planning for a potential IPO to unlock portfolio value, access permanent capital and provide liquidity earlier than traditional VCs.
MATT HAYTER
PROJECT WORKS FOUNDER AND CEO
Our portfolio Asset Value has shown sustained growth and resilience, even in the face of drops of over 50% in some listed technology companies.
In 2019, we tightened our investment mandate after recognising that it would generate superior returns. The IRR from investments within our tightened mandate are 20.5% per year.
*Internal performance measures are exclusive of all fund costs
Our portfolio is spread across geographies, industries and stages of company lifecycle to minimise risk. The portfolio effect reduces volatility and failure risk, particularly during down-cycles.
Our portfolio Asset Value has shown sustained growth and resilience, even in the face of drops of over 50% in some listed technology companies
In 2019, we tightened our investment mandate after recognising that it would generate superior returns. The IRR from investments within our tightened mandate are 25.8% per year.
*Assumes full participation in option and rights issues
**Internal performance measures are exclusive of all fund costs
Our portfolio is spread across geographies, industries and stages of company lifecycle to minimise risk. The portfolio effect reduces volatility and failure risk, particularly during down-cycles.
Let us know a couple of quick details and we’ll be in touch with more information. We’ll also add you to our mailing list to keep you up to date with new offers.
How we invest
We aim to be the fund of choice for NZ tech startups. We make it simple for founders to work with us and leverage our long-term mandate to reassure founders that we won’t push for the premature sale of a business.
We invest to hold and recycle returns back into portfolio companies and new investments. Our evergreen mandate allows companies to grow for longer and deliver larger returns when they do exit or list.
Being from a small market in the corner of the South Pacific means that local innovators tend to think globally from day one. Kiwi entrepreneurs have a knack for building products and companies that can scale. Combine these traits with NZ’s relatively low operational costs and historically underfunded startup scene and you get a unique seedbed for high-growth tech companies.
We like to invest in high-growth SaaS and technology companies with compelling products relied on by end-users that are creating value in big markets we are familiar with. We look for businesses that are are able to be sustainable with proven revenue generation and strong growth prospects. For SaaS companies, we look for a minimum Annual Recurring Revenue (ARR) of NZ$300K and Trailing Twelve-Months’ Revenue (TTR) of NZ$3-million for non-SaaS.
We like to invest small amounts early, when valuations are lower, and then increase investments as companies grow and are further validated. Our deliberate timing allows us to benefit from rapid revenue and valuation growth while limiting exposure to the highest rates of failure from investing too early. We prefer to be the lead investor and like to limit our shareholding to ≤ 30%, except in special cases approved by our Board.
Socially responsible investing principles and ESG are integrated into everything we do through our Socially Responsible Investing Policy, including our investment decision-making process and portfolio risk management policy.
High growth companies provide high returns, the market in New Zealand is inefficient, there is a shortage of growth capital in New Zealand and Punakaiki Fund has access to high quality opportunities.
We aim to be the preferred provider of capital to founders of New Zealand’s premier high growth companies, and believe that a founder-centric approach to investment and management attracts the best high growth investment opportunities to Punakaiki Fund.
We work to make quick, yet considered, high quality investment decisions, and offer high quality advice and assistance to companies over a long time.
We believe that holding investments for the long-term delivers higher returns to our investors. Diverse Portfolio: We believe that portfolio diversification reduces the level of risk for a given amount of return, and actively seek to diversify our portfolio.
We mainly invest with the intent that companies are able to become financially sustainable, should they wish it, without further material funding.
Our current target is to deliver annual returns of at least 20% to shareholders, measured on a five-year rolling basis, net of all costs, fees and Punakaiki Fund-level taxes.
We currently meet our operating costs from the periodic raising of new capital as well as through dividend flows from Portfolio Companies. We aim to be able to eventually meet our internal expense obligations (including payment of the Management Fee) through dividend flows from Portfolio Companies alone.
