Time is right for technology start-ups

The head of Massey University’s business innovation centre says the environment is now right in New Zealand for technology start-up companies to succeed internationally.

Steve Corbett, chief executive of the Albany campus-based ecentre, believes the business "ecosystem" has grown sufficiently over the past decade to provide the right combination of expertise and training, financial support, media knowledge and legal backing.

"I am convinced that New Zealand software companies will succeed in the next decade," Mr Corbett says. He says technology investment companies from the United States are now actively looking for emerging New Zealand technologies, illustrated by last week’s sale of high tech pipe profiling company CleanFlow Systems, which grew from the ecentre on the Albany campus.

CleanFlow, which will retain its world-leading research and development facility and all its 12 jobs in Albany, has been bought by RedZone Robotics. Its chief executive, Trevor Logan, will sit on the RedZone board of directors.

Mr Corbett says his reasons for optimism are that universities are now more focused on developing commercial opportunities and, while there will always be a need for investment capital, New Zealand has made good progress with the development of early stage funding – including the Venture Investment Fund, Seed Capital Fund and Angel Investment network – that have sprung up to provide capital.

“Over the past 10 years the support system for the industry has come a long way and grown from crawling to walking – still with the occasional totter – but is now gaining momentum.”

He says the advent of cloud-based computing has made the global market local and will be enhanced by the national fibre roll-out. Most importantly, attitudes have changed. “We are developing a quiet confidence and self-belief that New Zealand can consistently deliver world-class technology solutions into niche markets,” he says. “Our solutions are no longer number eight wire, our solutions are based on leading technology in both concept and user experience and this combination can provide our differentiation.”

Mr Corbett, who is also chair of industry national association Incubators New Zealand, says New Zealand has always had good technology companies, citing the examples of Jade, Datacom, and Peace, but the number of technology start ups growing with the ambition to becoming global players has dramatically increased and new companies are able to leverage on the success of the early movers.

He says smart cities attract smart people and the newly opened Wynyard Quarter in Auckland is an example of how a city can reshape the environment to enhance quality of life. “New Zealand will need to continue to develop attractive cities to encourage immigration by talented individuals,” he says. “With liveable cities and world class infrastructure we can attract talented people who can assist New Zealand grow its technology base – but equally they can enjoy the benefits of living in New Zealand.”