Morel signs another venture

By DANIEL RIORDAN


No 8 Ventures, the venture capital fund managed by Morel Ventures, has made its seventh investment.

It has paid $2 million (with an option for a further $1 million injection) for a 42 per cent stake in Wairarapa internet firm SiliconBLUE.

SiliconBLUE has developed an internet operating product called ocoloco, which acts as a platform for companies to manage their online business.

It is aimed at web designers and is used here and overseas, including in India, Argentina and South Africa.

SiliconBLUE hopes the product will become the standard for internet operating systems.

Ocoloco was designed by SiliconBLUE co-founder Mike Bennett and is based on software used by Wairarapa-based internet provider Contact Internet.

SiliconBLUE's forerunner, Contact Communications, was set up to run the internet provider, but decided there was more money to be made in its present incarnation with the ocoloco software.

Mr Bennett, one of four shareholders outside No 8 Ventures, is stepping aside as chief executive to focus on product development.

The company is moving to Wellington as it looks to add to its seven staff, including the addition of a chief executive.

SiliconBLUE also hopes to establish overseas offices within eight months.

To this point, the company has been financed by several investors, including acting chief executive Laurie Weake, well known as a past leader of the anti-Peter Witehira faction among Power Beat International shareholders.

Mr Weake said ocoloco had no significant competitors in its niche.

Morel Ventures director Jenny Morel said the fund's technical advisers thought the ocoloco software "rocked."

The investment means No 8 Ventures has committed $19.5 million of the $27 million it had raised.

Ms Morel said that two more investments were also being looked at.