Ngāi Tahu recruits Movac to boost its $40m-and-counting investments in tech start-ups

The iwi has invested $35 million across various funds in the Wellington venture capital firm’s stable, including the $10m it recently put into Movac’s $200m Growth Fund 7.

Primary industries and property have dominated iwi investment. “This partnership gives us exposure to high-growth, new-economy companies,” Ngāi Tahu Holdings chief executive Todd Moyle says.

And Ngāi Tahu invested directly into a Movac Fund 4 company, Nanolayr – a nanofibre textile start-up that went bust in October last year (a reminder that while primary industries and property are steady, at least over the long term, investing in start-ups is high-risk, high-reward, with the hope that a few big hits outweigh the inevitable misses).

Through its Ngāi Tahu New Economy subsidiary, the iwi is also invested in Lower Hutt nuclear fusion start-up OpenStar, e-waste recycler Mint Innovation, Tend Health and Zethos, which extracts data centre-friendly zinc and copper from steel mill waste.

All up, the iwi now has 18 New Economy investments, which will now be managed by Movac, Ngāi Tahu Holdings chief executive Todd Moyle told the Herald.

“We’ve had a long-standing relationship with Ngāi Tahu Holdings as an investor in our funds, and we are incredibly proud to take this next step in managing their venture capital strategy,” Movac general partner Mark Vivian said.

The Wellington venture capital firm will also sniff out new investment opportunities in areas including artificial intelligence (AI).

“AI is an area where there’s a lot happening in New Zealand, but it’s one where we don’t have investment expertise, so we’ve partnered with Movac, who do bring that knowledge.”

Long-time One NZ chief executive turned Les Mills International boss Jason Paris (Ngāi Tahu, Waihōpai) recently joined the board of Ngāi Tahu Holdings. Photo / Michael Craig

Moyle said Ngāi Tahu has around $40m in tech start-ups between the money it’s put into Movac funds and its direct investments.

That makes the iwi a notable player on the venture capital scene but it’s still a modest sum in the scale of its $2.11 billion portfolio, which is dominated by property, farming and forestry.

The expanded relationship with Movac will help shake up the mix.

“This partnership gives us exposure to high-growth companies that align with our values, while further diversifying our portfolio and creating opportunities for long-term growth,” Moyle said.

“We want to get more of a toehold in the new economy,” he said. Successful start-ups would see follow-up investments. He would not give a figure for the sums that could be involved.

Most Ngāi Tahu Holdings profits are reinvested, but a portion goes to grants in areas like education, scholarships, housing and community schemes, plus environmental stewardship and regional development programmes.

“We’ve had a long-standing relationship with Ngāi Tahu Holdings as an investor in our funds, and we are incredibly proud to take this next step in managing their venture capital strategy,” Movac partner Mark Vivian said.

Movac’s greatest hits include its early backing of Trade Me, before it was sold to Fairfax for $720m, Vend (sold for $455m), Timely ($135m), PowerbyProxi ($100m-plus) and Tradify ($100m-plus).

Recent fast-growing investments have included Auror, LawVu, Crimson Education, Dawn Aerospace and Re-Leased.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.