American billionaire and tech investor Peter Thiel is formally severing his business ties with New Zealand, marking the end of a controversial decade of investments, government partnerships, and public scrutiny. Filings submitted this month to the Companies Office show that Thiel’s investment firm, Valar Ventures, and its related entity, Valar NZ, are being deregistered, signalling his official withdrawal from NZ’s business sector.
The move brings closure to a chapter that began with high hopes for New Zealand’s technology sector but ultimately left many questioning the long-term benefits of Thiel’s involvement.
A Controversial Entry: Thiel’s Exceptional Citizenship
Thiel’s ties to New Zealand date back to 2011, when he was granted citizenship under exceptional circumstances, despite spending just 12 days in the country. At the time, then-Minister of Internal Affairs Nathan Guy defended the decision, citing Thiel’s potential to boost New Zealand’s economy and technology sector.
His fast-tracked citizenship—bypassing the standard requirement of 1,350 days of residency—sparked widespread debate. Thiel justified his interest in New Zealand by calling it “a utopia” and stating that no other country aligned more with his vision of the future. His application also highlighted his investment firm, Valar Ventures, as a vehicle to transform New Zealand into a hub for technological innovation.
Beyond business, Thiel made a $1 million donation to earthquake relief efforts in the wake of the 2011 Christchurch disaster, a move that further solidified his standing with government officials.
High-Profile Investments: Xero, Vend, and the NZVIF Partnership
Thiel’s venture capital firm, Valar Ventures, made significant early investments in key New Zealand startups. His most notable success was in Xero, the Wellington-based financial software company. Thiel began buying Xero shares at around $1 each, and as the company’s stock later soared past $90, his investment generated enormous returns.
In 2014, Valar also led a US$20 million ($34.7 million) Series B funding round in retail software startup Vend. The company was later acquired by US-based Lightspeed for US$350 million in 2021, marking another lucrative exit for Thiel’s firm.
However, the most contentious aspect of Thiel’s investment presence in New Zealand was his partnership with the taxpayer-funded New Zealand Venture Investment Fund (NZVIF). Formed in 2012, the joint fund was intended to support local startups, with NZVIF and Valar Ventures contributing nearly equal amounts. Yet a little-known buyout clause—rarely exercised in previous NZVIF partnerships—allowed private investors to purchase the government’s stake for the cost of capital.
The result was a staggering payday for Thiel and his co-investors. While the government-backed fund saw just a $10 million return on its investment, Thiel’s firm walked away with at least $30 million in profits. Critics slammed the deal as a “sweetheart arrangement” that disproportionately favoured the billionaire, leading the government to ban such clauses in future NZVIF deals.
A Quiet Exit
Despite his early enthusiasm, Thiel’s presence in New Zealand has steadily diminished in recent years. His Queenstown property, a 193-hectare lakeside estate purchased for $13.5 million in 2015, remains undeveloped after plans for a luxury lodge and meditation retreat were blocked by local authorities.
Now, with Valar Ventures shutting down its operations in New Zealand, Thiel’s footprint in the country has shrunk to little more than his passport and a small investment in Booktrack, an audiobook production company. His attention has shifted back to the U.S., where Valar Ventures continues to invest in global fintech startups.
Legacy: What New Zealand Gained—And Lost
Thiel’s decade-long involvement in New Zealand has left a mixed legacy. His investments helped propel key startups onto the global stage, and his early backing of Xero significantly boosted the country’s fintech reputation. Yet his overall impact on New Zealand’s technology ecosystem has been more limited than initially promised.
The controversial citizenship process remains a sore point, with critics arguing that it set a dangerous precedent for wealthy investors gaining special treatment. Meanwhile, the NZVIF deal raised questions about how the government structures public-private investment partnerships.