Tauranga Focus

Unzipping a little, it is fair to say that most of my focus at present is close to home.

I have spent probably two years researching the opportunities that Pingar can gain from offshore engagement. Networking and market visits to the USA, the UAE, Europe, Singapore, Hong Kong and India are testament to that.

To create a NZ model within that global framework has been a challenge. Size and distance to market of course impact on that. Our economy is smaller than Sydney's and there are more VCs in a single block in Palo Alto than across the whole country. Focus then on the positive.

NZ is rich in entrepreneurship and the No. 8 Wire mentality remains strong. There are numerous examples of great innovation across different sectors and a relaxed business environment to work in. Mapping those strengths against global models is the challenge.

A couple of weeks ago, I posted a blog about the new Limited Partnership regime. It was only enacted in April 2008 and is designed to facilitate sustainable growth in New Zealand's venture capital and private equity industries. Pingar has decided to adopt the Limited Partnership structure. We want to remove as many barriers as possible to attract offshore investment into the company. This structural move will help. It is also not an unattractive model for local (NZ) investors.

I have also discovered in recent weeks that there is an amazing appetite amongst local investors for opportunities such as Pingar. And I have learnt something else. In discussions with different 'professional' angel groups, I have found a fairly structured approach to engagement. I have not experienced much in the way of a flexible or creative approach to matching investment with specific individual opportunities. It is a case of 1) these are our investment criteria and 2) these are our structures. Now go away and map your business plan to match these.

So I have adopted a DIY approach. Create an appropriate model and structure for Pingar, design a BP and FM to map that model based on the investor's best interests and then get 'buy in' for that. The approach seems to be working. And don't dumb down the FM so that it looks more 'realistic' for the NZ market. Pingar is a global business with at least 90% + of sales coming offshore. Say it as it is.

Time then to zip up again.