Change in Investor Immigrant Rules to Target Start Ups

Mayor endorses Government review

From the Office of the Mayor Len Brown:

Auckland Mayor supports changes to investor migrant rules

Auckland Mayor Len Brown has endorsed the government’s review of investor migrant rules and hopes it will see more funds directed into startups and growth companies.

The Mayor’s comments follow the release of a paper from Auckland business incubator Icehouse which proposes changing New Zealand’s Investor Migrant Policy to channel a portion of wealthy migrant investment into New Zealand’s strategic capital needs which include providing capital for emerging growth companies.

“Auckland is creating an innovation city,” says Len Brown.

“We have seen the emergence of companies like Orion Health, PowerbyProxi, Adherium and Wherescape. We are also the location for a number of venture capital and private equity funds, and some of New Zealand’s most active angel investors.  About half of all angel investment in New Zealand goes into Auckland-based startups.

“The key constraint for many technology companies, however, remains investment capital.

“An initiative which deepens the pool of capital available to be invested into growth companies will help shift our economy to one based on technology and innovation. And if that means these companies can grow while maintaining their New Zealand base that will be positive for the economy.

“The Icehouse idea has merit.  If we can attract migrants who want to invest into growth companies and opportunities in Auckland and New Zealand, it can only be good.

“I hope the government gives it careful thought as it undertakes the review.”

—ends—

Sounds good although I hope the idea is not going to be Government handled thus picking winners like Minister Steven Joyce likes to do (and fails).

The idea would benefit Auckland especially as like-type business and industries clump together naturally (rather than having a public authority do it via innovation hubs) for agglomeration bonus effects that start kicking in.

In Southern Auckland’s case that would be:

  1. Education
  2. Food and Beverage
  3. Health/Population/Social
  4. Technology
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