Booster adds NZD $7.4 million to university spin-out fund

Booster has allocated an additional NZD $7.4 million to the Booster Innovation Fund, raising the total capital commitment from Booster-managed funds to more than NZD $23 million.

The NZX-listed fund invests in early-stage New Zealand companies, with a particular focus on university spin-outs based on research and technology. It has invested NZD $16 million to date and holds stakes in more than 40 active companies.

Most of those businesses come from the university and public research system. Booster said 31 companies in the portfolio originated from university or research institute innovation, although elsewhere it put the figure at 30 companies from publicly funded research at universities and other research institutes.

The fund's sourcing model relies partly on formal partnerships with commercialisation offices linked to Victoria University of Wellington, the University of Otago, and the University of Auckland. Booster said those relationships give the fund early visibility of research projects that may be suitable for commercial development.

The portfolio spans sectors including cancer treatment, health diagnostics, electrification, minerals recovery, decarbonisation, agriculture, horticulture, healthcare, environmental sensing, and machine learning. Companies named by Booster include BioOra, Alimetry, Ferronova, Mars Bioimaging, Wellumio, Allegro Energy, Linca, Liquium, Zethos, Aplenty, BioLumic, CaloCurb, Goodair Nosebuds, MACSO, and Scentian Bio.

Booster said the portfolio companies have a combined enterprise value of more than NZD $0.9 billion and employ more than 300 people in what it described as high-value roles.

University pipeline

The latest allocation underlines the role university research is playing in New Zealand's start-up market, particularly in science-led ventures that may require specialist investors willing to back businesses at an early stage.

"New Zealand's universities produce research with the potential to solve significant global problems. By backing spin-outs built on that research, BIF can help create companies with differentiated technology, stronger intellectual property moats and the ambition to compete in global markets," said Diana Papadopoulos, Chief Executive Officer of Booster.

Papadopoulos also linked the investment to Booster's domestic focus. "It also fits with Booster's strong commitment as a New Zealand company to support local companies, and create wealth and jobs for Kiwis," she said.

A small allocation to the fund is already held through a range of Booster investment products, including KiwiSaver and managed funds. That means retail savers invested through those products may already have indirect exposure to the innovation portfolio.

"This means if you are with Booster, there is a good chance you are invested in these small companies with big prospects, helping them to get off the ground and thrive," Papadopoulos said.

Direct access also remains open to individuals who want to invest separately in the vehicle. "Anyone interested in investing in these early companies that our team has identified as having great potential can invest directly in BIF for as little as $500," Papadopoulos said.

Market position

Venture funding tied to university commercialisation remains a relatively small but important part of New Zealand's wider capital market. Booster said its formal arrangements with university technology transfer offices distinguish the fund from other local venture investors.

"The formal university relationships are a key point of difference in New Zealand's venture capital market. They give BIF access to a pipeline of science and technology grounded in leading research, while enabling us to work alongside university commercialisation teams at Wellington UniVentures, Otago Innovation and Auckland UniServices and founders from an early stage," Papadopoulos said.

The additional allocation is expected to be drawn down by the fund as required, subject to conditions set out for investors. Booster did not specify a timetable for when the full NZD $7.4 million would be deployed.

Papadopoulos said the current portfolio already shows the scale of activity coming from publicly funded science. "So far, Booster has investments in over 40 active companies, of which 30 originate from publicly funded research from New Zealand universities and other research institutes. Collectively, the companies have a combined enterprise value exceeding $0.9 billion and are employing over 300 people in high-value jobs," she said.