Idealog’s Guide to Tauranga: Follow the money

Businesses in Tauranga looking to scale up should count themselves lucky: the Bay of Plenty is one of the only regional centres in New Zealand with funding available for nearly every stage of business growth. There are three organisations on hand ready to help: early-stage investment provider Enterprise Angels, tech investor and incubator WNT Ventures and later-stage private equity provider Oriens Capital.

For companies in the early stages of investment, WNT Ventures is technology incubator that’s been put together to nurture innovative ideas nationwide. It’s currently on a five-year pilot trial receiving government support through Callaghan Innovation.

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Global Survey Rates NZ Start-up Ecosystem

New Zealand start-ups have the highest percentage of offshore customers when measured against their counterparts from 50 other ecosystems including New York, Moscow, Beijing and London.

For the first time over 100 kiwi start-ups have taken part in the Compass Start-up Genome’s Ecosystem Ranking Survey. The Compass Start-up Genome project team is based in San Francisco and benchmarks start-up ecosystems from around the world.

The 2016 survey results have just been released at the Global Entrepreneurship Congress in Johannesburg, South Africa.

Commenting on New Zealand’s performance AANZ Chair, Marcel van den Assum said he was pleased to see “NZ Inc” on the world map.

“Start-up eco-system inputs such as volume of deals, number of angel investors and investment levels have grown consistently, and position New Zealand as a highly credible performer on a per capita basis,” said Mr van den Assum.

“I am particularly pleased to see our founders and start-ups leading the charge when it comes to engaging globally. To generate the level of value we hope our start-ups will deliver for New Zealand and their shareholders, we have to think and sell globally from day one. And our companies obviously are.”

New Zealand start-ups also ranked among the highest, at 5th, when it comes to positively interacting with corporates.

“The extent to which our companies are garnering interest from corporates bodes well for their success. New businesses need customers and investment and corporates are a great source of both,” said van den Assum.

Another important insight revealed by the survey is New Zealand entrepreneurs’ lack of experience. Less than half of our start-up growth teams have had more than two years previous entrepreneurial experience.

While this concerning, Mr van den Assum said this finding should provide a high degree of confidence to those supporting the growth and professional development of founders and start-ups.

“The challenge for New Zealand is to apply higher levels of capability, capital and connections to those businesses that have real potential to scale and deliver a return on investment to all eco-system participants. This is fundamental to longer-term sustainability. Those running start-up weekends, government incubation and accelerator programmes and the Seed Co-Investment Fund now have a clear evidence that these programmes are vital and much needed,” he said.

The survey was led by the Angel Association NZ and carried out with support from NZX, New Zealand Trade and Enterprise, New Zealand Venture Investment Fund, Ministry of Business Innovation and Employment and Callaghan Innovation.

“Lifting and supporting our high growth tech companies requires a NZ Inc approach so we are pleased that acquiring this data reflected that,” said Mr van den Assum.

 

For more information, please contact:

Suse Reynolds, AANZ executive director
mob: 021 490 974 or email: suse.reynolds@angelassociation.co.nz

Marcel van den Assum, AANZ chair and 2015 Arch Angel
mob: 021 963 459 or email: marcel@angelassociation.co.nz

The Angel Association of New Zealand (AANZ)

The Angel Association is an organisation that aims to increase the quantity, quality and success of angel investments in New Zealand and in doing so create a greater pool of capital for innovative start-up companies. It was established in 2008 to bring together New Zealand angels and early-stage funds. AANZ currently has 27 members representing over 600 individual angels associated with New Zealand’s key angel networks and funds. Recent NZ Venture Investment Fund data revealed angels have invested more than $NZ437m in over 928 deals and 296 companies in the last 10 years. For more, please visit: www.angelassociation.co.nz

The Compass Start-up Genome

The Global Startup Ecosystem Ranking is the definitive resource for founders, investors and other leaders to understand entrepreneurial vibrancy in 50+ leading cities. It was been published at the Global Entrepreneurship Congress 2017 in Johannesburg, South Africa last week in front of policymakers from 160+ countries. It will be read by approximately 500,000 people (25% founders, 25% investors, 25% policy makers, 25% other). A full copy of the report can be found at  https://www.thunderclap.it/projects/52927-startup-ecosystem-report-2017?locale=en

New Zealand Venture Investment Fund

The New Zealand Venture Investment Fund invests with venture capital funds and alongside angel investors to support New Zealand technology companies with start-up and growth capital. The NZVIF was established by the New Zealand government in 2002 to build a vibrant early stage investment market in New Zealand. We have $300 million of funds under management which are invested through two vehicles: the $250 million Venture Capital Fund of funds and the $50 million Seed Co-investment Fund. All our investments are made either through privately managed venture capital funds, or alongside experienced angel investors, who we partner with to invest into New Zealand-originated, high-growth potential companies.

Callaghan Innovation

Callaghan Innovation is the government’s business innovation agency. Its purpose is to grow New Zealand’s economy by helping businesses succeed through technology. It delivers innovation services to businesses and build New Zealand’s innovation capability, including supporting a network of incubators and accelerators across New Zealand. It also provides technical and scientific expertise, impartial advice, skills development, access to industry networks, and grant funding. www.callaghaninnovation.govt.nz

 

 

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NZ start-ups strong in foreign markets, survey shows

New Zealand start-ups have the highest percentage of overseas customers when measured against their counterparts from 50 other “ecosystems” including New York, Moscow, Beijing and London, according to the Compass Start-up Genome’s Ecosystem Ranking Survey.

The Compass Start-up Genome project team is based in San Francisco and benchmarks so-called start-up ecosystems from around the world. More than 100 Kiwi start-ups took part in the 2016 survey, according to the Angel Association of NZ. In New Zealand, the survey was led by the Angel Association with support from NZX, NZ Trade and Enterprise, the NZ Venture Investment Fund, Ministry of Business, Innovation and Employment and Callaghan Innovation.

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Caldera founder Jim Watson loses cancer battle

Jim Watson, whose personal battle with prostate cancer led him to co-found Caldera Health, has succumbed to the disease but investors are showing confidence in the company’s gene testing technology by converting options into shares.

Watson, who had been a scientific and management adviser up until the end of 2016, died on Feb. 13, Caldera’s chief executive Rob Mitchell has confirmed. Watson co-founded the company with Richard Foster, who had also been diagnosed with metastatic prostate cancer and died in January 2014.

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Callaghan Innovation Stakeholder Advisory Group reappointments

Science and Innovation Minister Paul Goldsmith has today announced the reappointment of Claire Robinson, Brett Hewlett, and Suse Reynolds to the Callaghan Innovation Stakeholder Advisory Group.

“The reappointment of Ms Robinson, Mr Hewlett, and Ms Reynolds recognises the valuable skills and insights they all contribute to the advisory group, as well as their work to ensure that Callaghan is connected and engaged with its stakeholders,” says Mr Goldsmith.

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Phitek sold to NYSE-listed Amphenol in $60M deal

Phitek Systems, which supplies noise cancellation and audio enhancement equipment, has been sold to New York-listed Amphenol Corp for $60 million before adjustments.

Connecticut-based Amphenol announced the deal in a statement to the New York Stock Exchange when reporting its fourth-quarter earnings, saying the Phitek purchase was part of a broader acquisition programme, without disclosing a price. However, local filings to the Companies Office show Amphenol agreed to pay $60 million plus net cash, minus the New Zealand company’s indebtedness, the levels of which have not been disclosed.

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Simon Brown: Entrepreneurs and investors descend on Hawke’s Bay

For two days last week the Black Barn Winery in Havelock North was the focus of the world’s venture capital and angel investor communities.
Entrepreneurs and investors from New Zealand, Canada, North America, China and Europe spent last Thursday and Friday at the 2016 NZ Angel Summit discussing investment strategies, sharing their expertise and creating opportunities for innovative Kiwi start-ups in need of early stage finance.
These were some of the most successful investors in their field. People like North American business and equity finance consultant Ross Finlay, who has come to New Zealand with the support of Callaghan Innovation to help local businesses understand what Angel Investors expect from them, to show them how to establish relevant relationships and introduce them to North American and NZ Angel networks.
Ross has secured 35 Angel investment deals in recent years and has assisted in the development and review of countless business plans for start-up companies.
He has extensive networks within the world of international finance and he knows how to leverage them for the greater economic good.
Hawkes Bay’s stunning environment was a bonus for local and international financial high flyers like Ross but they weren’t here primarily for the scenery. These were all seasoned and experienced business people who have made their money in a range of sectors.
Naturally, they’re looking for a return on their investment but they’re also motivated by a desire to help others with the same drive and ambition they have and, crucially, to do their bit to grow the New Zealand economy.
Government ministers and officials, colleagues from Callaghan Innovation and the nationally located business incubators also attended the summit.
They came away with re-enforced enthusiasm and confirmation of the optimism and dynamic evolution in this fast growing sector of our economy.
Last financial year was a record breaker in terms of deals made with Kiwi start-ups and dollars invested.
Deals worth a total of $61.2 million provided 92 creative and passionate New Zealand entrepreneurs with the kick start they needed to get their great idea off the ground. In addition to this investment, Callaghan Innovation supported 152 start-ups through incubators.
That’s an unprecedented deal flow and a strong indication that NZTE’s Investment Showcase events and Callaghan Innovation’s incubation funding and accelerator programmes are bearing fruit.
New Angel regional networks are forming. Syndicated Angel funds are proliferating and long standing networks are experiencing a surge of interest. Wellington’s Angel HQ, for example, has gained 30 new members in just the last six months.
Increasingly businesses are successfully exiting the start-up phase of their journey but still face challenges in accessing growth capital and appropriate commercialisation expertise. International capital exists but the New Zealand eco-system is looking at how it can work better together to facilitate the access to it.
We’re doing great but we can do better. Investment in research and development in New Zealand still lags behind OECD countries. Areas like SaaS, FinTech, AgriTech and other areas of the digital sectors are doing well but there are also great ideas brewing in MedTech, BioTech and food and beverage production.
A few of those could well be the disruptive industries we need to take New Zealand and the world into a healthier and wealthier future.
– Simon Brown is general manager accelerator services of Callaghan Innovation

First published – NZ Herald 6 November 2016

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What does it take for agritech business to Sprout?

An agritech incubator is back for a second season of growing business ideas. But will they take root?
The problem is well-known: there are more people in the world than ever before, so there’s more need for food than ever before. But more people also means there’s less available land to grow that needed food. What is one to do?
That’s where agritech innovation accelerator Sprout comes in. Working with agritech startups from across New Zealand’s primary industries and boasting a bevy of big-name partners including BNZ, Callaghan Innovation, KPMG, Air New Zealand and Massey University and counting Fonterra as its supporters, the incubator has some serious firepower – or in this case, seeding power – behind it. Programme manager James Bell-Booth says it’s proof there’s a serious appetite for agritech ideas. “We have a lot happening around incubation and acceleration,” he explains. “We’re after ideas from the paddock to the plate.”
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Callaghan Stakeholder Advisory Group appointments

Science and Innovation Minister Steven Joyce today announced the appointments of Stefan Korn and Andrew Hamilton to the Callaghan Innovation Stakeholder Advisory Group.

Callaghan Innovation is the government agency tasked with encouraging more research and development activity by businesses across New Zealand’s science and technology sector.

“These new appointments both bring extremely useful skills and insights to the advisory group and ensure Callaghan remains well connected with its stakeholders,” Mr Joyce says.

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Lead Partners

NZTE NZVIF PWC

Expert Partner

NZX AVID AJ Park “FNZC.jpg”

AANZ Summit Sponsors

Callaghan Innovation “UniServices” Kiwinet “Spark”