In an era of rapid technology evolution, not all venture capital firms are equipped to navigate the complexities of deep-tech innovation. Over the last decade, New Zealand’s Callaghan Innovation Deep Tech Incubator Programme has been instrumental in supporting groundbreaking technological ventures, fostering over 84 deep-tech startups with impressive outcomes like a 72% survival rate and over $300 million in follow-on capital raised.

And while anyone can deploy capital, the true challenge lies in supporting startups through growth and delivering consistent returns to investors, particularly across a diverse portfolio. At WNT Ventures, we have been key player within this program and exemplified what it means to be a strategic innovation partner. Our selective approach—reviewing 200 to 250 companies annually but investing in just a few—has paid off. Fund 1 delivered a net annual return of around 20%, with all investor capital returned and continued upside potential, while Fund 2 has yielded a net return of 25% and consistent liquidity. This strategic selectivity has resulted in steady returns for our Limited Partners (LPs), even amid volatile market conditions.

After ten years, of being the longest-running Deep Tech Incubator and Fund, some of our stats include the following:

Demonstrated Liquidity and Returns:

  • Fund 1 has delivered notable success:
    • A net annual return ~20%, with first realised liquidity within 3 ½ years and upside still being produced,
    • A DPI of 1.03, meaning investors have received all of their investment back, with further returns expected from the remaining portfolio companies.
    • Portfolio companies in Fund 1 (six of them) have collectively raised nearly $200m in initial and follow-on investments.
  • Fund 2 has continued this trend of strong performance:
    • A net annual return of around 25% (we expect this to increase again fairly soon), and a DPI of 0.26, indicating that a quarter of the committed capital has already been returned, and more to come.
    • Initial liquidity in Fund 2 was achieved within 4 ½ years, and companies like Foundry Lab, which has been supported by Founders Fund, Blackbird, GD1, and Promus Ventures, to name a few, and is currently raising its Series B round and Marama Labs recently raised again from Irish/USA Fund The Yield Lab, supporting the company with further growth opportunities.
    • Companies in Fund 2 (eight of them) have collectively raised ~$60m with that number to jump significantly in the next few months.
  • Fund 3 is building on the foundation laid by our earlier funds:
    • ~60% of our portfolio companies have female founders, demonstrating our commitment to diversity.
    • With 11 investments already made, and more planned, we’ve surpassed the J-curve, and the portfolio is showing promising progress.

Stability and Proven Track Record:

The venture capital market has seen the entry and exit of new players, some of whom have restructured or ceased operations altogether. Throughout these fluctuations, WNT Ventures has remained steadfast. We’ve successfully invested through changing market conditions, more recently backing standout companies such as Bspkl, Opo Bio, Iaso Medical Systems, and Apercure in Fund 3. Our 10-year track record of delivering annual realised returns highlights our resilience and ability to navigate economic uncertainty.

Addressing Key LP Concerns:

For many LPs, liquidity (DPI) remains a top concern, and we’ve consistently delivered on this front. Our Funds 1 and 2 have provided cash returns to investors every year for the past six years. Demonstrating stability that is rarely seen in venture capital. Additionally, manager stability is a key factor for LPs when evaluating a fund's longevity and quality. Recognizing this, we brought on Maria Jose Alvarez as a partner, diversifying and strengthening our leadership. Her experience and insights have been a great asset, complementing the existing leadership from Carl Jones and further positioning WNT Ventures for long-term success and strength in a market where every fund in New Zealand has lost at least one partner or senior leader.

Fund 4: A New Milestone

As we continue to raise for Fund 4, we are proud that we have secured more capital than in our three previous funds, marking a significant milestone in our growth. This achievement underscores the confidence our existing LPs have in our strategy, and we are pleased to welcome new investors to the fund as well. This new fund will allow us to continue building on the successes of Funds 1, 2, and 3, and deploy capital with the same diligence and strategic focus that has been the hallmark of our operations.

Looking Ahead:

As we celebrate our 10-year anniversary, Fund 4 represents a new chapter in our growth story. With strong backing from both returning and new investors, we are positioned to continue delivering exceptional results. Despite broader market challenges, we have onboarded three new companies this year and expect to add more before the year’s end, showcasing our ability to secure high-quality deals that are often unavailable to the wider market.

For investors seeking a stable, experienced partner with a proven track record of results, WNT Ventures remains a trusted choice. We are excited to continue building on our successes and delivering value to our portfolio companies and investors alike.

 

WNT Ventures Managing Partners