Menu
New govt grants for startups come with clawback provisions

New govt grants for startups come with clawback provisions

The repayable grants, of up to $450,000 per company, will be distributed by a new type of private sector-led technology incubator, which will add its own funding to provide at least 25 per cent of the startup company’s costs on a one to three basis

New government grants for startup technology companies will be subject to clawback provisions if the recipient company is sold to overseas interests or its operations relocated overseas.

The repayable grants, of up to $450,000 per company, will be distributed by a new type of private sector-led technology incubator, which will add its own funding to provide at least 25 per cent of the startup company’s costs on a one to three basis. Up to four incubators are planned.

The cost of the scheme is budgeted at $31.3 million over four years. There will be a three to five-year pilot.

Funds will be distributed by Callaghan Innovation.

Science and Innovation Minister Steven Joyce says the grants will address a critical gap that early-stage technology businesses face where they need money to address startup costs but are not yet at a stage where investors will commit capital.

The repayment of the grants will be applied as a royalty of 3 per cent on the incubated firm’s gross revenues.

Joyce says the new incubators are modelled very closely on a successful Israeli model of company incubation.

As at March this year, Israel invested 4.9 per cent of GDP, the highest of any OECD country. New Zealand invested 1.3 per cent of GDP.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags fundingstart-upsgovernment technology

Featured

Slideshows

Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Reseller News ICT Industry Awards 2017 - Meet the winners...

Reseller News ICT Industry Awards 2017 - Meet the winners...

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established and emerging partners on a memorable night in Auckland.

Reseller News ICT Industry Awards 2017 - Meet the winners...
Show Comments