Auckland-based Icehouse Ventures is seeking to raise $NZ30 million for its third seed fund.
The new fund is expected to invest in up to 30 start-ups over the next three to four years.
To date, Icehouse, which now has a total of $NZ250 million in funds under management, has backed a total of 288 tech start-ups. Investments of the seed funds have included fractional share investing platform Sharesies, Dawn Aerospace and smart compliance business FirstAML.
An investor presentation said that over the last five years dozens of New Zealand start-ups had grown into $NZ100 million plus businesses and these were helping develop the next generation of founders.
Icehouse Ventures evolved from an angel investor community linked to Auckland University. The firm now has a team of 20 led by chief executive Robbie Paul.
Paul said the new seed fund would follow the pattern of the first two, seeking to invest in exceptional early-stage businesses pursuing global opportunities.
As with the prior funds, Icehouse is targeting fundraising efforts at family offices and high net-worth individual investors and expects many prior investors to reinvest. Icehouse now has an investor community of around 1,500.
Investors are required to commit a minimum of $NZ50,000 which will be called down in equal tranches over four years. A 2% annual management fee will be charged over the first five years.
According to the fund presentation, nearly half of the start-ups funded by Icehouse have been led by second time founders or key team members of prior start-ups.
“The next generation is poised to be the largest, boldest, and most experienced New Zealand has ever seen,” the presentation said.
Image: A Dawn Aerospace satellite launching re-usable rocket plane.