Menu
Stop talking product, NZX CEO tells IT start-ups

Stop talking product, NZX CEO tells IT start-ups

When start-up companies talk product to investors, instead of talking business, they’re asking them to buy into a dream, NZ Stock Exchange CEO Mark Weldon told an IT audience in Wellington last month.

Start-up and early-phase ICT companies searching for capital give potential investors little real information about their business, Weldon says.

“It is extraordinary how little [New Zealand] CEOs know about their business,” he told a meeting of the NZICT Group late last month. “That is why capital markets don’t fund them. They want information about the company. What they continue to get out of the ICT sector is information about the product.”

Product information, even if investors can understand it, is almost irrelevant to them when it comes to sinking money into the company, with a prospect of a return and in due course a profitable exit.

“If that continues, there will be no capital,” he says “You’re just asking them to buy a dream.”

Xero stands out as a company that has it right, Weldon says. It set up good links into the financial networks, through Cameron & Partners and First NZ Capital, two companies that neatly complemented each other’s skill-sets. Such networking is more important in New Zealand and Australia than it is in many overseas countries, where the banks are more active in that respect.

Read more at Computerworld.


Follow Us

Join the newsletter!

Or
Error: Please check your email address.

Tags xeroNZX

Featured

Slideshows

Bumper channel crowd kicks off first After Hours of 2018

Bumper channel crowd kicks off first After Hours of 2018

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Jefferson in Auckland to kick-start 2018. Photos by Gino Demeer.

Bumper channel crowd kicks off first After Hours of 2018
Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Show Comments