High tech investor aiming for $30m

By PETER GRIFFIN

No 8 Ventures, the venture capital fund managed by Morel Ventures, is to go to the market in the New Year seeking $30 million, which it will invest in technology companies.

The fund has fully committed its original $27 million to nine investments, including clinical software developer Doctor Global and Tacit Group, a financial software company.

Morel Ventures director Jenny Morel said the fund had "not seriously looked at a business plan in six months" because it did not have the funds to commit.

"We'll go into funding mode early next year. We'd be disappointed not to get $30 million," she said.

No. 8 Ventures would raise capital locally but it would also court private equity investors in Australia and the United States.

She said the second fundraising was likely to be easier.

"This time around, although we haven't exited any of our investments yet, we do have a good track record, which will make it easier."

She said the current investment climate was putting the squeeze on available funds.

Businesses in the US were being told not to assume future financing rounds and in many cases were advised to "put their business in tread water mode", she said.

"[Venture capitalists] are telling businesses to have six months at least and preferably 12 months' cash in hand. Enough to survive if nothing else."

Speaking at the South East Asia Computer Confederation conference in Auckland yesterday, she said No 8 Venture's investments were growing steadily, with Tacit Group coming close to a United Kingdom listing last year.

Payroll systems company PayGlobal had turnover of $9 million and 3D graphic production company Right Hemisphere would launch a plug-in allowing 3D objects to be displayed in Microsoft's popular PowerPoint presentation software next month.

The company was also working on 3D software for Microsoft's Xbox game platform.

Doctor Global had licensed its personal health record software in the US. The company, which offers an online diagnostic and prescription service, received $2 million from No 8 Ventures in June.

"The focus has shifted to online medical records. I think you'll see them partner with other companies quickly."

She said Morel Ventures was also looking for a new operating partner with a background in technology.