Guy said cycling in Rotorua used to be really strong, especially when the likes of Clinton Avery, Sam Bewley and Aaron Perry were coming through.
"We had a lot of talent in Rotorua but we did not really follow up on it after they left."
Guy said the team did well at the first Dynamo series event of the season earlier this month in Te Awamutu, finishing sixth out of 12 teams. One of the Rotorua team's top riders Sam Phipps finished ninth overall.
"For our guys to go out and be competitive was great because we were definitely the youngest team in the race. We had an average age of 18."
Cycling Rotorua is the biggest road cycling club in Rotorua and does a lot for the sport in the city.
Guy said a lot of his team's riders were heavily involved in the club, and they were not trying to take over from that club. He said Rotorua Racing's main focus was giving young riders a great platform and opportunity to develop.
He hoped the team would function for many years to come and continue to give locals a chance to excel in the sport.
"We want to keep up the number of riders coming through and constantly be developing our riders," he said. "And I suppose if we do get a kid to a higher level of racing that would be great."
Waiariki Institute of Technology and QE Health have both come on board to sponsor the team which has played a big part in getting it set up. Guy said they were also looking for another local sponsor.
New Zealand cycling legend Julian Dean, who lives in Rotorua, was helping the team as an ambassador and giving advice where needed, Guy said.
Rotorua's John Lee has also come on board. He is a top cycling coach, having coached Commonwealth Games teams in the past.
Guy said a goal for the future would be to take a team down to race Tour of Southland, New Zealand's premier road cycling event.
"It would be great to be able to take a team down there in a few years and be competitive not just be making up the numbers."
- The inaugural Rotorua Racing team:
Sam Phipps, Harry Phipps, Nathan Johnston, Taylor Johnston, Jared Johnston, Daniel Johnston, Xavier Mansell, Cosmo Bloor and William Guy.