Over recent years universities in New Zealand have come under pressure from Government to increase quality assured research outputs and raise the level of staff participation in research-focused activity. One response to this pressure has been to target research development funding toward new researchers within an institution. This paper reports on the initial evaluation of one such targeted scheme: a three-year, university-wide funding initiative designed to improve research culture (including the research-teaching nexus) and increase outputs. The funding scheme evaluated in this paper began in 2004 as a strategic initiative designed to provide impetus to the research programs of new researchers and to give them experience in completing grant applications. Following attendance at orientation workshops staff members apply to a new researchers' development fund for an internal grant to support a specific project. Experienced researchers then mentor applicants regarding how to improve their applications before final approval is given. This paper reports on the impact of the scheme in four key areas: contributions to scholarship; teaching informed by research; relationships to external funding; and career progression of participants. The paper concludes with recommendations for the future funding of new and emerging researchers. (Contains 3 tables and 1 figure.)