Online firms get venture fund boost

Alvin Donovan

Kiwi Growth Partners, a venture capital company with US connections that plans to inject up to $100 million into the local tech sector, has partnered with two online businesses.

KGP is in discussions with the New Zealand and two overseas stock exchanges with the aim of taking Hamilton-based Quicker Internet (previously known as NetStream Internet) to the market within the next six to 12 months.

KGP head Alvin Donovan said Quicker was aimed at the retail and wholesale market and had about 2000 customers.

Quicker had technology in the works that had the potential to save companies millions of dollars and some big contracts to provide services.

"To execute these deals, it needs expansion capital," Donovan said.

KGP is also working with ScholarNet, an online education provider. Previously a division of King's College in Auckland, ScholarNet provides online curriculum materials in a range of subjects for schools or students who want to engage in extra learning from home.

Donovan is a management consultant with 20 years' experience in the United States and Europe.

KGP has a partnership with US merchant and investment banker Millennium Capital and is on the lookout for technology-based investment opportunities here.

Donovan said: "Kiwi companies are extremely clever when it comes to technology innovation. Their challenge is many do not yet know how to go about getting offshore investments."

There was huge demand for capital looking to invest here from Australia.

"The problem is they have too much cash chasing too few deals.

"Here the problem is there is too many good deals chasing too little cash."

ON THE WEB www.kiwigrowthpartners.com