High-value NZ Innovation Fund being Established

Building on its initial successes, commercialisation specialist Astrolab is establishing a new investment fund targeting high-value New Zealand innovation. The fund will see more complex Kiwi technology move from conception to global commercialisation. “We provide a more reliable pathway from early-seed investment through to growth investment, and we’ve got a couple of emerging successes under our belt already” says Brett Oliver, Astrolab’s CEO. The successes include Aquafortus, which provides ‘zero liquid discharge’ technology for industrial wastewater treatment, and Moxion, which is revolutionising large-format media distribution. Aquafortus recently landed a deal comprising around US$40-million of targeted revenue with an American company in the oil and gas sector. Oliver says the commercialisation company is looking to bring stronger return multiples, and improved continuity of idea-supply, to New Zealand early-stage venture investors. “We’re known as a small country which punches above its weight. New Zealand’s had recent international success stories like Rocket Lab, A2 Milk, and Power by Proxy. Our mission is to find, lead, and grow our share of the next big technology-powered ventures.” Astrolab and its highly experienced investment committee, comprising local and offshore technology and investment experience, plays a key role in New Zealand’s relatively small but active innovation investment ecosystem, “We work with all stakeholders in the venture development pathway. In particular we’re often the commercial starting-point where great technologies need management, governance, and clear commercial impetus in order to start strongly. We’re the co-founders, filling that gap where great tech ideas might otherwise stay on the shelf.” Astrolab’s development of the new fund is aligned with the Government’s commitment to increase research and development spend from 1.3 percent to 2 percent of GDP. The company, which is part of the Government’s Tech-incubator Program which, for qualifying, high-potential, deep-technologies, matches private investment with three times the amount through a partnership with the Government. Astrolab brings with it deep experience in translating early-stage technology into exportfocused businesses and an existing network of strategic partners its ventures and investors benefit from. Rather than funding existing ventures already underway with sales, typically Astrolab partners with innovators and other investors to fund potentially high-return ‘technologies’. We act as the glue, the drive, and the leader on-theground enabling great tech to benefit from hand-picked venture teams that overcome initial commericalisation and market challenges. This is the support much of New Zealand’s potentially high-yielding technology lacks. Oliver adds, “we want to support investors from around New Zealand and offshore to get more involved in New Zealand’s earlystage technologies. Tech which resonates with investors because of experience insector is the key focus – smart capital that strengthens a venture’s proposition even further. Drawing on deep sector expertise placed in venture boards, Astrolab works across a range of sectors including information and communications technology (ICT), life science, clean-tech, human performance, media, visualisation/VR/AR, agritech, and the care/medical environment.” What sets Astrolab apart, he explains, is its direct involvement at an early stage – similar to a private equity approach, a ‘managed’ approach that is typically used on more mature businesses. It professionally directs validation and development of products, establishing legal protections for intellectual property, and creating the appropriate structures necessary to turn a concept into an international product or service. The innovators are involved along the commercial path in various roles to suit their experience and aspirations. Oliver points out “Funding complements the important value that comes from an experienced commercialisation team who understand the challenges of translating complex technologies into operating businesses and partnerships. We’re open to a range of investment and technology partnerships that stimulate New Zealand technologies to grow here and offshore.” http://www.astrolab.co.nz/