A more Sophisticated IT Investment Community

Show me the money… You’ll get way more back

Funding doesn’t answer all your problems, and it’s best never to hang the problems you’re facing as a start-up or growing business solely on lack of funding, but if you’ve got the right balance of good market, great product and excellent sales prospects then you have to make sure you’re properly funded.

Getting funding is a major issue thats been around software entrepreneur circles for the short half a dozen years or so I’ve been in the game and it’s been clear that this is especially the case down here in New Zealand where we have relatively limited investment available to IT ventures. When you’re a software entrepreneur, you’re always trying to find and stay connected to sources of funds, it’s a key part of the mix if you want to build something really successful. Money in New Zealand still on the whole follows our country’s most basic assets: Real-estate and Farming. This provides a good sturdy capital base for the country, but if we want to grow and get the bigger gains from higher yielding assets as many other leading economies do, then we need to leverage this capital to invest in creating and developing Higher Risk IT based businesses. Articles like this have been circulating NZ’s papers.

The new Angels and Experienced Entrpreneurs

We have a new round of IT capital coming through from people who have made their money in the industry, people like Rod Drury, Sam Morgan and possibly at some point others like Rowan Simpson.

Having people like these guys with a proven track record in making big money in IT from New Zealand, putting themselves back on the line in behind the next round of us that will hopefully do the same, adds sophistication to our IT investment community. Not only does the industry get the direct benefit of their capital and experience when they back businesses, but it sends a strong signal to the wider investment community including some of the traditionally safer money, that big money is going to be made in New Zealand IT, and if they want some of the action they better jump on for the ride.

Entrepreneurs need to raise the bar

It’s a good kickstart, having some new money and exceptional experience, but we all as entrepreneurs have to raise the bar, and come up with and execute winning propositions. We need to focus on business models that provide fantastic Return on Investment so that the industry get’s a few more win’s on the board. Rod talks about this a lot. This lowers the risk profile of our IT industry, something we all need to accelerate growth and enhance our position on the world stage.