Major hit to the competition

MYOB was subject to a takeover by a private equity firm at the end of 2008, which sparked the move of previous founder and board member Craig Winkler, and no doubt a shift in culture for the business at a time when Xero is just warming up. The ability of private equity to manage a business which needs to rapidly innovate in a competitive environment remains to be seen, but it’s clear that the now private equity lead MYOB will continue to face challenges in finding and retaining key talent and innovation, and with the visionary founder now moving his money into Xero, the new era of online accounting lead by Xero is in full swing.

Existing investor top-up

The shares will be issued at 90 cents in a round open to all existing investors, so while Xero don’t need your additional money, if you bought in at launch, nows a good time to top up and bring your average buy price down slightly. With a strong growth curve, a freshly capitalised balance sheet, a foothold in New Zealand, the UK and Australia, and momentum building from a base of regular customers, Xero is well on it’s way as a powerful global business that’s changing the way small businesses roll in the new world economy.

Big congrats to the Xero crew, this is a big win for the industry and a great story for the NZX at a time when capital is generally tight.

Joining and being part of it early

If you’re already a member of New Zealand’s Global Business Community – Made From New Zealand, then just sign-in using your account, if not signing up a minute, and get some momentum behind your answers. (this was made in its entirety by our very busy team at Made From New Zealand in just 8 days, so its a work in progress, push it to its limits)

Riding to Work – A small siolution that makes a big difference

So 186,350 kiliometres and counting after day 3 in New Zealand’s cycling community well on track for way over a million k’s this month… If you support Riding to work as being a solution to many issues, then go here and add your support.

It’s been a big year so far for everyone, and to finish it off we’ve organised a big xmas party on a boat for a lot of little businesses in the community. So If you’re a Silicon Welly business and want to enjoy celebrating your year of ups and downs and – hopefully more ups in the end : ) with other like minded people in a party cruising around the Wellington harbour with full buffet dinner with a bunch of other cool people and businesses making it happen, then this is your party : )

Pam Minett from YMedia who are based up in the Silicon Welly hive of goodness, did this beautiful invite where you can sign-up, and organised the boat – so all you have to do is register your biz and numbers (partners… too ofcourse), pay and turn up on the night of December 3 and you have an xmas party of the stars for your crew : ) Thanks Pam!

I’ve got a few companies I’m involved in now, Made From New Zealand, PlanHQ, StartUp, Seamless Experience, The Naked Trainer and Challenge for Change, and a cool crew of people working across them, and we’ve got the other businesses here at the Silicon Welly HQ space: ProjectX Technology, Snipesoft, MarchingCubes.com, YMedia, Rocket Boys, Art Klick and Resonant Concepts, so there’s our little base for the party, we all look forward to sharing the night with the rest of Silicon Welly.

Some of the best investors around

Among the New Zealand Investors involved they’ve got Movac, Sparkbox, Ice Angels, AngelHQ, No. 8 Vnetures, Bio Commerce, Endeavour Capital, PowerHouse, Upstart,  Canterbury Innovation Incubator

Seminars
21st August – Auckland
22nd August – Wellington
26th August – Christchurch

These guys have been lead investors in high profile companies like Del.icio.us Netvibes Mint Riya and heaps of others, so not to turn your nose up at.

My apologies if you’ve already seen these over at Make it Happen, but I’m not sure who’s reading both.

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.