Simplicity stumps up with $50 million for fund targeting high-growth Kiwi companies

KiwiSaver provider Simplicity is to invest $50 million in Icehouse Ventures’ Growth Fund III, which targets high-growth New Zealand firms like Halter and Calocurb.

The investment will push the size of the fund to $180 million, $30 million higher than when it was opened earlier this year.

The Icehouse Ventures Growth Fund III is designed to invest in 20 late-stage, high-growth Kiwi companies.

It now has investments in three companies, including Halter a virtual fencing tech company, and Calocurb, which has developed a weight-management supplement and Kiwi founded global software company Supabase.

Icehouse Ventures CEO Robbie Paul said it was a vote of confidence, both in the companies it is backing and the opportunity that exists for New Zealand investors.

“Success for us is that a greater percentage of New Zealand’s leading companies is owned by Kiwis. A larger fund helps make this possible,” he said.

Simplicity managing director Sam Stubbs said the $50 million investment from Simplicity is likely to be one of the largest venture capital investments of its kind by a KiwiSaver fund.

He said it was an example of how KiwiSaver will help reshape New Zealand’s economy.

“We are now finally starting to see other KiwiSaver managers follow our lead, but more should get involved because the results speak for themselves, both for our members and for the good it does for New Zealand.”

KiwiSaver provider Generate has also invested $40 million with Icehouse Ventures across Growth Funds I and II.

While Pie Funds is a $10 million cornerstone investor in Growth Fund II and is intending to invest again in Growth Fund III.

Icehouse Ventures said KiwiSaver providers have now committed at least $190 million to their funds and their portfolio companies, up from $60 million at the close of Growth Fund II in 2024.

Paul said it means a much broader group of Kiwis can become shareholders in companies that would otherwise be largely inaccessible to them.

“Some of New Zealand’s most valuable and fastest-growing companies are privately owned.

“This means that most Kiwis, even farmers that are fanatical customers of Halter, are not able to own shares. Investment by Simplicity KiwiSaver means 100s of thousands of New Zealanders can take part in their success.”