The University of Auckland Business School and Charles Bidwill are looking to create a fund that is self-sustaining and that stimulates the growth of New Zealand’s SMEs for many years to come.
To do so, the Challenge will require that the funds be repaid by the end of the third year of the investment. In recognition of the favourable terms the Investment Committee will be looking for some upside at maturity – either through a gift that recognises the value of the benefits received or equity participation. The Entrepreneurs’ Challenge Investment Committee will invest up to $1 million per annum in one or more companies at their discretion.
Terms and conditions will be negotiated with successful applicants on a case-by-case basis depending on funding needs, the risks associated with the business and other relevant factors that the Challenge and the applicant determines.
The Entrepreneurs’ Challenge conditions will include the following:
- Quantum: negotiable but no less than $200k and no more than $1m
- Duration: three (3) years
- Interest rate: negotiable – but more favourable than that prevailing in the market for companies of a similar age, stage and risk profile
- Security: negotiable – but normally unsecured
- Principal repayments: timing negotiable – but must be repaid by end of three years
- Equity participation: may be required
