Elevate backs Altered Capital's USD $25m growth fund push

Elevate NZ Venture Fund has committed $25 million to Altered Capital Venture Fund II, a $100 million venture capital fund targeting Series A and Series B rounds for New Zealand-connected technology companies.

The Government established the Elevate programme, which is managed by New Zealand Growth Capital Partners. It invests in venture capital funds alongside private capital. Those funds then invest in early-stage New Zealand businesses on a commercial basis.

Altered Capital Venture Fund II will focus on later early-stage rounds, which often follow initial customer wins and require larger cheques to fund expansion. Series A and B rounds typically support team growth, increased sales activity, and stronger operational capacity.

NZ Growth Capital Partners Investment Director Jason Roche said Altered Capital offers a different approach in the local market, with a focus on businesses moving from early traction into a faster-growth phase.

"Altered Capital is building a reputation for disciplined, high-rigour investing and is becoming known for working closely with founders as their businesses shift from early success to rapid growth."

He said the Series A and B focus adds balance to Elevate's broader set of commitments across multiple stages of venture investment.

"Its focus on Series A and B rounds adds important balance to the Elevate portfolio and helps strengthen the funding pathway for New Zealand companies ready to expand internationally," Roche said.

Fund focus

Altered Capital was founded in 2022 by New Zealanders McGregor Fea, Craig Mawdsley, and Marcus Traill. The firm manages multiple investment vehicles, including a New Zealand venture fund with $100 million in committed capital. That fund has invested in eleven portfolio companies.

Roche said the Elevate commitment reflects Altered Capital's track record of leading and syndicating local growth rounds, as well as the scale of its team and operating approach.

"We're encouraged by the depth Altered has built in-market, including an experienced investment team and portfolio support capability that founders consistently point to as value-adding," he said.

"The team's approach is commercially focused and underpinned by robust due diligence. It's an approach that can help companies scale sustainably while building globally relevant governance and financial discipline," he said.

Manager view

Altered Capital Managing Partner McGregor Fea described the Elevate commitment as a signal of support for the firm's second fund and its investment strategy.

"Altered exists to unlock potential. We back New Zealand's most ambitious founders who have proven traction in scaling their ideas. Elevate's commitment to Fund II directly supports those founders in taking their products to the world - rapidly and with confidence," Fea said.

He said the firm focuses on capital-efficient companies with commercial traction and a credible path to international expansion.

"We invest when there's clear evidence that a product is resonating with customers, then partner closely with founders to support growth through governance, operational help, and access to our networks," he said.

Elevate allocations

Elevate is a $400 million fund-of-funds programme that invests alongside matching levels of private capital. The Government provided a further $100 million as part of Budget 2025.

Following the commitment to Altered Capital Venture Fund II, Elevate will have allocated $271 million across twelve underlying funds. Those funds have raised more than $885 million in aggregate and have invested in 162 early-stage companies, according to NZ Growth Capital Partners.

The programme has also recorded realisations from investments in funds managed by Movac, GD1, Nuance, Hillfarrance, and Pacific Channel. NZ Growth Capital Partners said those proceeds have been redirected into new investments.

Fea said Altered Capital will continue investing at the point where products show customer pull and businesses begin to require larger growth rounds.