Venture Capital Fund Act 2019

Investment of VCF

20: Directions in policy statement that must be consulted on

You could also call this:

"Rules the Minister must follow when making decisions about the Venture Capital Fund"

Illustration for Venture Capital Fund Act 2019

You need to know what the Minister can do when it comes to the Venture Capital Fund. The Minister can give a direction, but only after talking to the Guardians. The policy statement has rules that the Minister must follow. You have to consider what venture capital is and what the New Zealand venture capital market is. The venture capital must be made available to New Zealand entities, either directly or through funds. The policy statement must say what a New Zealand entity is and how to calculate if venture capital is being made available to them. The Guardians must follow the directions when managing the Venture Capital Fund. The policy statement can have rules about when venture capital will be made available and when it will be returned to the Crown. The Guardians must think about these rules when managing the fund.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS226993.

This page was last updated on 13 December 2025 — View changes

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19: Minister must give policy statement that specifies high-level requirements, or

"The Minister must create rules to guide the Venture Capital Fund's investments."

21: Minister may approve departure from direction in particular circumstances, or

"The Minister can let the Guardians not follow the rules in special situations."

20Directions in policy statement that must be consulted on

The Minister may give a direction of the kind described in this section only if the Minister has consulted the Guardians.
The policy statement must contain directions that—
specify what must be considered to be venture capital and a New Zealand venture capital market; and
require the venture capital made available through the VCF to be made available wholly or substantially to New Zealand entities specified under paragraph (c), whether it is made available directly to those entities or indirectly through funds; and
specify, for the purposes of paragraph (b),—
1. what must be considered to be a New Zealand entity; and
2. how to calculate whether venture capital is being made available substantially to those entities; and
require that, to the extent that the venture capital is made available through funds, the venture capital is wholly or substantially made available through funds with a New Zealand connection specified under paragraph (e); and
specify, for the purposes of paragraph (d),—
1. what must be considered to be a fund with a New Zealand connection; and
2. how to calculate whether venture capital is being made available substantially through those funds; and
set the minimum proportion of investment that must be made by other investors in 1 or more circumstances specified in the direction.

The Guardians must give effect to the directions under subsection (2) when managing and administering the VCF.
The policy statement may contain directions about 1 or more of the following:
the Government’s expectations as to the time period during which all or a part of the venture capital to be made available through the VCF will be made available to entities:
the Government’s expectations as to the time period during which all or a part of the capital invested through the VCF will become available to be returned to the Crown:
the Government’s commitment to a low-emissions economy:
the Government’s commitment to an inclusive economy:
the Government’s wider economic policy as specified in the direction.

The Guardians must have regard to the directions under subsection (4) when managing and administering the VCF.