International phase
The fund will now expand its capital raising internationally, connecting offshore capital with high-impact New Zealand companies, Vahdat says.
The chief executive divides his time between the US, where Bridgewest was founded, and New Zealand, making him something of an ambassador for Kiwi start-ups.
“New Zealand produces world-class innovation, particularly in deep technology and life sciences, and the rest of the world needs to know about it and be connected with it,” Vahdat says.
“By expanding our raise offshore, we are building a bridge between international capital and high-impact New Zealand companies. Our operating capabilities and wholly-owned network of companies across seven countries enable us to do more than provide capital – we provide strategic connectivity that helps companies scale globally.”
Deep tech focus
Bridgewest Group was founded in 1999 by brothers Dr Masood Tayebi and Dr Massih Tayebi, Iranian-born American entrepreneurs who created Wireless Facilities then listed it on the Nasdaq during the dotcom boom, when its value peaked at around US$5 billion (about $10b at January 2000 exchange rates).
The firm expanded to New Zealand in 2016, taking advantage of an earlier investor visa programme.
Bridgewest Group had wanted to diversify operations outside the US and assessed Canada, Australia, a couple of European countries and New Zealand, Vahdat says.
What won out for NZ?
“The welcoming nature of the Kiwis, of wanting us to not only be here, but be part of that venture ecosystem, invest alongside them, live here and build together. That was really attractive to us,” Vahdat says.
Bridgewest Group’s first public-facing investment was a tech incubator, created in partnership with Callaghan Innovation.
The firm replicated all four tiers of its US investment strategy in New Zealand: private credit, private equity, property and venture capital.
Although Fund 1 is its first raise, Bridgewest Group has already put money from its balance sheet into more than a dozen local early-stage companies, with a focus on “deep tech” or R&D-intensive start-ups working on breakthrough products.
It targets high-growth New Zealand companies operating in life sciences, medical technology, advanced materials, clean technology, artificial intelligence (AI) and other deep-technology sectors with global market potential, Vahdat says.
Bridgewest’s existing investments include:
- Projectworks, the Hi-Tech Awards 2025 Emerging Company of the Year, which is using AI to reinvent project management and other tasks for professional services firms
- Masco, which recently signed a multimillion-dollar contract with a top-five animal health company
- BioOra, a partnership with the Malaghan Institute, focused on automating the manufacturing of CAR-T cell immunotherapies to make cancer treatment more affordable and locally-accessible
- The TestMart, an AI-based platform that automates software testing
- Zealafoam, which commercialising plant-based polystyrene replacement foam solutions in Europe.
Putting its money where its mouth is
Bridgewest Ventures has committed $5.5m into the fund as a limited partner on identical terms to other investors and will increase its commitment commensurately as the fund grows, reinforcing strong alignment with investors, Vahdat says.
Pathfinder Asset Management founder Paul Brownsey has been named the independent chairman of Bridgewest Venture Fund 1 GP’s investment committee.
No carry
As direct investors into the portfolio as well as having a limited partner (LP) stake, the fund uniquely charges no “carry” (a performance bonus on top of management fees, typically running to 20% of any gains), while keeping high alignment with LPs, Vahdat says.
POSTSCRIPT: Golden visa numbers grow
The Active Investor Plus (AIP) scheme, introduced in April last year, lowered investment thresholds and removed an English-speaking requirement.
AIP centres on two categories: one for those willing to put at least $5m into “growth” investments such as venture capital, the other for $10m in “balanced” investments.
As of this month, AIP visa holders are also allowed to purchase a property valued at $5m or more, skirting the housing market foreign buyer ban.
In its latest update, dated February 26, Immigration NZ said 196 AIP applications had been approved, with 40 in the Balanced category and 156 in the Growth category.
The total committed investment from these 196 successful applications amounts to $1.18b flowing into New Zealand’s economy, Immigration NZ says.
In total, there have been 539 applications under the new scheme for a potential total minimum investment of $3.47b, Immigration NZ says.
So far, 448 applications have been approved in principle (but with visas yet to be granted), 72 of these in the Balanced category and 376 in the Growth category.
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.
