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The facts prove what we've all known for quite some time: There's a huge lack of venture capital funding here in New Zealand.

According to the radio report, around 5 percent of all new ventures are funded by venture capitalists in the USA -- but here in New Zealand just one in every 100 startups gets any formal VC funding.

Last year, venture capital funds made just 28 investments in New Zealand startup companies, and that's absolutely awful.

Despite Jim Anderton's penchant for the occasional photo-opportunity and Cullen's claims that the changes his government has put in place will make this country a very attractive place for venture capitalists to invest their money -- it's clear that the reality is nothing like the dream.

So why is it that a disproportionate number of NZ's best and brightest are forced to turn to friends and family, or mortgage their own homes just to get backing for new ventures?

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I wonder how much of our potential is being squandered because our hi-tech projects attract just one fifth the venture capital placements than those in other countries?

And this lack of investment is not something we can ignore because the figures for January of this year indicate a trade deficit that is the worst in almost two decades. How much of this is due to the fact that, despite our politicians sucking up to the few success stories we enjoy, a huge number of export-generating ventures remain on the shelf for lack of funding?

Sure, the government has come up with a number of grants and loans designed to offset our abysmal lack of VC funding but, as I've pointed out before, these tend to be handed out more on the applicant's ability to fill out forms and spin a story rather than the merits of their ideas or business-plan.

Come on Cullen and Anderton, get your fingers out and come up with some policies that make New Zealand and its entrepreneurs a more attractive place for venture capitalists to invest their money -- is that too much to ask?

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