TMT Ventures, offering cash for new growth businesses in the technology, media and telecommunications sectors in Australasia has commitment for $85 million in venture capital.

Telecom initiated TMT Ventures last year and has since introduced venture capital and technology sector investors including Lucent and Marconi, fund manager AXA, utilities company Rotorua Energy Trust and entrepreneur Stephen Tindall, founder of the Warehouse. Auckland based Direct Capital and Advent International, a global venture capital giant, jointly manage TMT Ventures. Its executive chairman Ross George says discussions continue with other prospective investors as part of the ongoing programme to raise over $130 million. Mr George says TMT Ventures has access to many promising new business proposals. "In New Zealand, we are now looking at four specific proposals representing a combined investment of $10 million." TMT Ventures recently invested $4 million alongside major US venture capitalists in Redfern Integrated Optics, which designs and manufactures high-end optical equipment for communications networks. The total raised in that round was $28 million. Redfern Integrated Optics is an Australian based manufacturer specialising in the fabrication of silicon based optical waveguide structures for communications devices. Telecom invested $40 million to launch TMT Ventures, a new trans-Tasman seed venture capital fund specialising in telecommunications, media and technology companies. It expects to invest $150 million over the next four years. Investments are expected to range from $500,000 to $10 million with up to $50 million per year committed.