Start-up investors aim to fly high with their Eagle

By RICHARD WOOD

The investors behind start-up businesses Endace Measurement Systems and Prolificx, an electronics engineering firm, have set up an "IT accelerator" called Sellutions in Manukau City.

The company has a "closed fund" of investors who include Selwyn Pellet and Neil Richardson.

Pellet said his and Richardson's equity in the related businesses averaged 50 per cent of the total.

Other investors would come in by invitation.

Sellutions target markets are environmentally friendly technologies, communications technologies, and home.

The company will provide management and international development expertise for a group of existing and planned privately financed start-ups, including Prolificx and Endace, a telco and security supplier.

Key to the group's activities is a handheld computer board that Prolificx has designed which can be customised.

The Eagle board uses Intel's new Xscale mobile processors, and can be used in eftpos Machines, vending machines and mobile devices.





Pellet says quantities as low as a couple of dozen, or through to mass volumes, can be made, but the design, manufacturing and sourcing capability also forms a base for striking investment, licensing and distribution relationships internationally.

Prolificx began midway through last year as a result of a buy-out of a local design operation of multinational component distributor Avnet.

It employees 22 staff, and is looking for five more.

On September 26, Prolificx announced it had established a memorandum of understanding with Canadian telco Bell Canada involving a design, manufacturing and licensing agreement.

The Herald contacted Bell Canada but did not receive a response.

Sister firm Endace has scored an order worth $1.2 million and involving "network surveillance" from an American firm.

Pellet declined to name the company.

He said Prolificx also had a memorandum of understanding with Australian company In Motion Technologies (IMT) to provide technology.

It would take a shareholding in IMT, which develops high-tech energy-efficient motors, as used in the Adelaide-to-Darwin solar car race, and for a developing market in electric bikes.

Another deal is brewing with local firm Smart Homes, which has technology interests including home security, power metering and energy efficiency.

Prolificx cost between $200,000 and $300,000 to set up.

It has also had a grant of $130,000 from Technology New Zealand.

Pellet said it had been virtually self funding since then.

The money spent developing the Eagle boards is around $400,000, including "our own sweat equity".