Hybrid innovation seen as key to growth

Steve Saunders says the region now has places where smart ideas can be developed into world-leading companies. Photo/John Borren

The Bay of Plenty is well placed to develop an innovative, entrepreneurial culture because it now hosts almost the entire funding continuum, says Plus Group managing director Steve Saunders.

And he said a key missing funding link was being addressed, with Quayside Holdings working on setting up a venture capital fund.

The new fund could fill the gap between angel investing and the next stage of funding, when companies were still too small to attract major private equity funding.

As a council, we recognise that it is our entrepreneurs and our entrepreneurial businesses that will create wealth and jobs for this city in the future.

Mayor Stuart Crosby

Mr Saunders, speaking at last week's City Leaders Lunch, noted the contribution of the 150-plus member Enterprise Angels group of local investors - now broadened beyond the Bay to the Waikato.

"Enterprise Angels members have invested $14 million into new companies - $6.5 million of that into local start-ups," said Mr Saunders. "That's game-changing for the Bay."

He also cited VentureCentre's Base Station, which was building capability for new entrepreneurs, new business incubator WNTVentures and Wharf42's Meteoroid programme, which was providing opportunities for local start-ups to go directly into Silicon Valley and tap funding from the US.

"We now have places where we can take those smart ideas and foster them into world-leading companies," he said.

The key to the Bay of Plenty's future growth was to create a hybrid form of innovation that differentiated the Bay from other regions, said Mr Saunders who, with the Jeffrey family, has been a key driver in developing the Newnham Park hybrid cluster of innovative agri-tech focused companies.

"I see future developments around building sectors of excellence around the hybrid experience," he said.

And he described the recent Budget announcement that the Government planned to fund three regional research institutes as "the biggest opportunity we've got" for Tauranga.

"I believe we can get one of those centres here, if we collaborate - as we do so well in Tauranga - to make it happen."

10 year Long Term Plan development objectives:
- Maintaining the existing $3.5 billion asset base.
- Investing in growth-related infrastructure with the development community, with $890 million in projected capex and opex investment.
- Investing in the city's future, including $16 million committed to the CBD and events alone.

Mayor Stuart Crosby told the lunch the Tauranga City Council was committed to supporting new innovation in the city and wanted to encourage innovative ecosystems.

"The key components of these ecosystems are skilled people, innovative companies and research institutions, and the availability of capital to invest effectively," he said.

"As a council, we recognise that it is our entrepreneurs and our entrepreneurial businesses that will create wealth and jobs for this city in the future."

Tauranga MP Simon Bridges said the strong local economy was more than just the story of property and kiwifruit's strong recovery from Psa-V.

"Technology is providing the opportunity for the region to be master of its own destiny as never before," he said.