By Yoke Har Lee
While Neville Jordan was growing up in Petone, the word entrepreneurship was something alien to him.
Little did he know that he would one day become one of New Zealand's most successful technology entrepreneurs, making history by being the first to trek down the route of a Nasdaq listing for his former company MAS Technology, started with a modest $2000 in capital.
He also charted history of sorts when he started MAS Technology - he set a whole new microwave telecommunications industry going in the country.
"When we launched the industry in making microwave telecommunications, it was pretty much a new industry," he told the Business Herald.
With the start-up capital, $1900 of his money and $100 from his partner, he created a company overnight.
"I left work on a Friday afternoon and started the company on a Monday." Prior to that, he had a long career at IBM, a place that provided him with the basics of running his own company.
These days, he dreams of helping create another new industry currently not in existence in New Zealand, perhaps building another "Glaxo."
Mr Jordan sees integrity, loyalty and "trust in the people who work for you" as key attributes for an entrepreneur.
"You also must be an individual with a high energy level and someone who knows how to grow a business - be a problem solver, not a problem maker."
He started out building satellite receivers for the leisure market. Later, he delved into selling battle simulation software to the US military which industry observers say forced him very early on to build high discipline and high manufacturing quality.
Realising the need for neither too fanciful nor too basic a system, he started building microwave transmission systems ideal for small townships.
Growth took off and averaged more than 30 per cent in the 10 years prior to the company's Nasdaq listing.
Not too long afterwards, Digital Microwave offered to buyout the company.
Mr Jordan sold 2.5 million shares in MAS Technology for more than $23 a share. He decided it was best to sell out, allowing the company to be a part of a large global company growing equally strongly.
Mr Jordan has had no further involvement in the company for 18 months.
He is now looking towards helping create a "Silicon Valley effect" in New Zealand by reinvesting capital in innovative technology and companies.
He said he drew criticism when he took MAS Technology down the Nasdaq route but he has no regrets.
"It took 20 years for MAS Technology to reach its market capitalisation - when it listed, [this] was around $150 million. Now there are two others and myself who have left the company and realised the share capital gain. We have invested and started up new companies.
"In the two years since the company listed, and with people leaving and reinvesting their capital, their combined market capitalisation has shot up to what equates to a doubling of the market capitalisation. The net result is that of multiplicity ... this is where you can get the Silicon Valley effect, once you can get enough people reinvesting in New Zealand, this can grow very, very quickly."
Those who know him have the highest regard for him. John Manning, businessman and former manager of Technology New Zealand, said: "Neville's a natural innovator but he is not just that. He has the combination of being an innovator [along with] strong business and management skills.
"I have a lot of respect for him. He may be successful, but he's also someone who is just another bloke who has time to help anyone. New Zealand needs more Neville Jordans around."
These days, Mr Jordan divides his time between travelling, scuba diving, motorcycling, horse riding and doing charity work. The rest of the time he spends overlooking his investments and companies.
He also sits on the board of the Foundation for Research, Science and Technology and is an advisory member of No. 8 Ventures, started by Morel & Co in Wellington.
While he is excited by the prospects of science and technology on the New Zealand economy, he is also "frustrated" with the poor results yielded by public investment in research and development.
"We are spending around $300 million per year. We should be getting 10 times the return on R&D funding. Where's the $3 billion increase in revenue the Government should be getting? Some hard questions need to be asked, I think."
What also bothers him is New Zealand turning into a nation of softies. "We are getting soft in the head," he said. He believed the country had developed a dependency streak.
"I think we have gone too much towards the average. The concept of success is not venerated. It is not cool to be successful. The self-sufficiency and the determination streak [are] starting to atrophy. That's breeding an air of mediocrity," he said.
Part of the problem, he said, was people did not realise how intensely competitive the world was.
"What's our place in the world? We ought to celebrate achievements in business, not just in sports."
This, he reckoned, was in sharp contrast to Asia where the spirit of innovation and entrepreneurship was very much a part of everyone's lives. In the US, Mr Jordan said, there were as many business heroes as there were sport heroes.
In his mind, New Zealand can create the next Glaxo - the global pharmaceutical company founded by a New Zealander.
"That was a company started in New Zealand. People shouldn't forget that."
For the young technology entrepreneurs out there looking for development capital, Mr Jordan's advice was to not be too hung up on ownership.
"There is well over $100 million in venture capital available here. Part of the problem is many people in companies don't want to give up their shareholding. They think they must have 51 per cent to be in control.
"They don't seem to realise that investors putting money into companies want them to succeed. They want the original founders to remain, to be running the business. There is misunderstanding in the role of capital here," he said.
The other was to have a grip on reality. "This is one other difficulty - it's called 'don't call my baby ugly' - people being in love with their own child. The company may not have a good market, it might be poorly positioned or the management might be terrible."
Mr Jordan's eyes twinkled as he spoke of what thrilled him about science. "It's the creative process where scientists and engineers produce something new that did not exist before. One can get emotional with the creative process - I am not talking about using other people's discovery, but finding new things, extending the frontiers."
Tech innovator aims to create second 'Glaxo'
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