Wellington
With the makeup and function of the Advanced Technology Institute Establishment Board recentlymade
So, on that front, assuming the ATI’s brief is relatively wide ranging, something that shouldbe well worth following up.
The government’s startup business investor, NZ Venture Investment Fund, takes an equity stakein the investee company as part of its ownership proviso.
Israel on the other hand at a country level has tended to increasingly shy away from equityinvestment in companies. Instead they provide a loan. (Some of this, plus a great and widerexplanation of the Israeli startup investment scene can be found
Equally in New Zealand, we should recognise that it is taxpayer money at risk, but that goingdown a (repaid if the idea/innovation comes off) loan road is a much simpler model.
What’s the advantage?
Firstly it keeps the ownership structure clean. It also doesn’t mean there’s a contingentasset/liability on the capital providing entity’s books. And, if and when new capital isintroduced to the startup, the founding providers of capital don’t get pushed to the bottom of theheap.
At the same time, should the startup go belly-up, the debt (loan) provider, has first call overthe assets (which will often be a form of intellectual property).
Finally, if the startup does well, the loan capital plus interest is repaid – and able to bereinvested again.
Whether such a move would slow or even stop the (almost inevitable it seems) sale of promisingand growing businesses to overseas would remain to be seen.
But it is clear that we need a level of other capital investment beyond the healthy angelscene.
To be noted
And while we’re on the subject of ATI getting up andrunning, an observation on the appointment of the Ministry of Business, Innovation andEmployment’s deputy chief executives.
The advertisements for these five roles were advertised on Friday 3 August, applications closedon Monday 13 August, and appointments (though this isn’t definitive) are lined up for Monday 27August.
The advertising and selection process is all taking place in-house (i.e. no outside HRconsultants involved).
Now, (presuming they’ve applied) these acting deputy chief executives may be the best peoplefor the job(s). Equally, it could be argued that any outsiders with an interest in the DCE roles,would had their CV hot and heavy, ready to be posted.
But it’s a bit too close to being a stitch-up, cum fait accompli.
Why weren’t they simply appointed deputy chief executives in the first place and save everyonethe bother of appearing to go through due process?
Not a good look fellas. Not very innovative.