"There's always money for good ideas, and what we need is good ideas."
That’s the challenge Ian Frame and the members of Launch Taranaki, a business investment network, are putting to Taranaki’s innovators and creatives as the region builds an innovation ecosystem and unlocks its potential for future growth and success in a changing economic environment.
Ian is the chair of Launch Taranaki, an ‘angel investment’ group made up of experienced and passionate business investors ready and willing to put capital into good, early stage investment opportunities.
“Those opportunities tend to be start-up companies that may or may not have yet launched a product,” says Ian. “In addition to providing capital, the investors also provide mentorship, experience and business connections."
“When hopefuls come and present to us we like to put our investor caps on and challenge the opportunity, as it’s a tough world out there and being challenged early on is a useful experience.
“We’re like the Dragon’s Den – a friendly Dragon’s Den, and a supportive Dragon’s Den, but a Dragon’s Den nonetheless,” Ian laughs.
Launch Taranaki was initiated by regional development agency Venture Taranaki in 2016, and has formed close relationships with other angel investor groups throughout New Zealand, including the Government-run New Zealand Growth Capital Partners.
It has grown to 25 members and so far has invested in seven companies, both locally and further afield.
“Angel investors like to be helpful and do good for the local economy,” says Ian, who until 2014 led a private equity investment company in Wellington for 11 years.
“In that way they fill a really important role in the development of start-up companies. In the process of investing, the Launch Taranaki members invest their own hard-earned cash and therefore need to target a good return on their funds.
“That’s good for the founders of new businesses because if the investors do well financially, so will the founders."
Ian says there is a good supply of investment capital in Taranaki because of the wealth that has been created in the property, energy and livestock farming sectors. There are also institutional funds that have accumulated, including funds received recently through the Māori claims settlement processes.
“That’s good because the upcoming economic changes expected in Taranaki will drive new business development and innovation, all of which will need funding.”
He says, unlike many other regional areas, Taranaki is fortunate in having good numbers of young, educated, and ambitious people resident, returning or migrating to the region.
“In the past there have been a lot of job opportunities driven by the energy and farming sectors. Going forward, that’s likely to expand and there will be a lot of young, creative, innovative people turning their attention to other sectors, such as tourism and specialty food production. There will also be greater focus on the information technology sector and specialised manufacturing.”
The highly industrious nature of the community also bodes well for Taranaki’s future.
“There’s a ‘can do’ culture of simply getting on, doing it, and being productive, which is great for the economy and for developing new business opportunities.”