By ROB O'NEILL
Technology innovators will be scouted by some serious offshore venture capitalists at the second IT Investors Forum in Auckland next week.
Among venture firms attending are industry giants Nomura Jafco with an $A800 million ($964.2 million) regional fund and Australian venture capitalist Allen & Buckeridge with another $A100 million.
Sausage Software founder Steve Outtrim and Chris Jones, founder of Auckland-based telecommunications company Telemedia, which has listed on the Australian Stock Exchange, will also be checking into the forum.
Nomura Jafco is part of the Japanese Jafco Venture Capital Group, which has invested more than $10 billion during the past 15 years in 2,500 companies. One of these companies is Entelec Systems, a former New Zealand software firm now in Australia.
"We're trying to become active players in New Zealand because we've been impressed by the quality of the technology," said Nomura Jafco investment manager Campbell Olsen.
The company has a partnership with Auckland venture fund Caltech Capital Partners.
Mr Olsen said there was some sobriety in the market after recent stock market corrections.
"It has become hard for good venture capital houses to play in the market in recent months because of the extreme valuations.
"What we are noticing is those valuations are coming down-to-earth again to be more in line with risk."
However, he is not overly concerned about predictions that venture capital returns will diminish.
"I don't think we'll be seeing some of the meteoric rises we have seen but there is still an enormous potential in technology. It depends on whether you are happy with a four-times return or a 400-times return."
Mr Olsen does not believe New Zealand is a venture capital bargain hunters' paradise, maintaining our developers are globally astute and aware of international valuations.
Forum organisers IT Investment Network will contract participants for any deals sealed as a result of the forum. It will act as a broker for the firms that are presenting or displaying their wares at the forum.
Venture giants target forum
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