Wellington
In the same week that the Punakaiki Fund was abandoned,came a much less heralded, but much more important deal for NZ Inc.
Wellington-based Endeavour Capital is, in the New Zealand sense, a veteran in the early stage andstartup investment stakes.
But its new fund is quite different, and promises to help solve the ongoing challenge of capitalgrowth for Kiwi companies, without them having to relocate offshore to follow the money.
It is also a way to get over the ‘valley of death’ funding dilemma for innovative early stage companies –those that have received a million or two in initial capital, but need say another $10 million topush on with R&D and marketing and distribution to globally scale up to the next level ofgrowth.
This type of capital requirement is beyond local angel investors or even NZ-based venture capitalsources.
A recent interview with
The right kind of capital comes with advice, connections and new ideas.
Now, the successful applicants to the new Endeavour Capital fund will have to demonstrate theyhave proven management teams, and offer products or services that can link into the internationaldistribution networks that are virtually attached to the fund.
However, given that the investors have a vested interest in their NZ-oriented investments makinggood, the ability for new Kiwi products (with global aspirations) to seamlessly link into thosenetworks will be priceless. This will be capital of the right kind as Shenk (himself an ex-patAmerican) extols.
Just as importantly, it will provide a better chance of New Zealand companies being able toremain located here, and to attract and retain talent, here.
Perhaps we shouldn’t be surprised that the new fund hasn’t received that much mediaattention. It isn’t necessarily a stealth revelation, but certainly it is quietly underplayed.
For those local companies looking to ramp up through new capital though, the new fund willcertainly be dead-centre on their radars.
And best of all, it doesn’t just come with money, it also comes with considerable knowhow.
P.S. - It would've been good from a stimulating interest in high-tech POV if The Punakaiki Fundhad got off the ground. I like the no sour grapes attitude of its promoter/founder Lance Wiggs in ablog
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