[ad_1]
File Image
photo: 123 RF
The startup technology sector continues to receive strong support from investors and appears to be thriving despite the overall economic downturn.
Barnaby Marshall, partner at business consultancy Icehouse Ventures, said there was still plenty of practical support and funding to help the sector grow.
He said the pace of investment has returned to pre-pandemic levels, although deals are taking more time to close.
“I would say there have been some changes in the speed and the prices at which people are transacting. But good companies are still raising money. There’s still a lot of capital in the ecosystem, and I think what’s going to be really beneficial over the next few years is the recycling of capital.”
Marshall said that globally, the technology industry is relatively young but is becoming more mature.
Many of the original tech entrepreneurs of a decade ago are plowing their proceeds and expertise back into emerging startups.
“We are still here and committed to building the tech ecosystem for the long term. We believe the future of the New Zealand economy will be even more reliant on high value technology exports than it is today and we will continue to support that.”
HealthNow founder and CEO Steven Zinsli said his company had benefited from the strength of New Zealand’s tech ecosystem and had recently raised $3.4 million in funding to fund engineering and expansion in Australia.
Mr Zinsley said Trade and Enterprise was one of the agencies helping New Zealand businesses succeed in export markets.
“My experience of working in the tech sector over the past three years is that they always place a lot of emphasis on supporting new businesses that have export opportunities into other markets,” Mr Zinsley said.
Marshall said New Zealand’s tech ecosystem had grown to include international partners and veterans of successful start-ups.
Despite the maturity of the sector, few technology companies have transitioned to listing on the NZX capital markets.
Marshall said there is plenty of private equity available to help businesses grow.
“I mean, I’d love to see more high-quality listings on the New Zealand stock exchange. I think it’s good for the New Zealand economy in general. The challenge is just the cold start challenge, there are multiple capital markets options for good companies … there’s a lot of private capital available to support the growth of companies.”
Besides that, he said the New Zealand Stock Exchange (NZX) was smaller compared to the Australian Stock Exchange (ASX) and Nasdaq.
Marshall said support for New Zealand’s tech sector meant more BroadCast Unitedlectual property stayed in New Zealand, which would bring long-term benefits to the New Zealand economy.
[ad_2]
Source link
