Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Central Energy Trust Launches Fund to Benefit Start-ups

Central Energy Trust Launches Fund to Benefit Start-up Businesses
Official Press Release

The Central Energy Trust has announced the creation of a Seed Fund of $500,000 to be administered through the BCC as part of a major effort to promote growth in Palmerston North and the wider Manawatu region.

It is anticipated the Fund will assist in encouraging the creation of a number of new start-up businesses in the Manawatu region with ongoing economic value and the creation of new employment opportunities.

The BCC has partnered the Central Energy Trust to manage and administer the fund that will help local high-growth projects that have reached a critical seeding stage of development.

The Central Energy Trust's $500,000 contribution will be supplemented by further funding from other investors, government sources and MIG Angels, the BCC's investment wing.

The Central Energy Trust Seeding Fund is based on a successful investment model that's been operating effectively in Israel for several years. BCC's Chief Executive, Dean Tilyard, studied the model in Israel and has modified it for New Zealand conditions.

"The funding will be used as very early stage seed investment in promising commercial technology based companies. Because of risks associated with seed funding, it's hard for young technology companies to attract investment," Dean says.

"In the past young companies have failed or grown very slowly and missed their opportunity. This has been tragic for a region like the Manawatu which is rich in technology and research. However, with a structured seed funding, that opportunity will no longer be lost."

The model impressed Central Energy Trust trustees who decided to actively support it by the creation of a special seeding fund of sufficient substance to get more early stage projects underway as quickly as possible.

Central Energy Trust Trustee, Sir Brian Elwood said "We thought the proposal was excellent. We were delighted with the approach, the thinking behind it and the forward planning involved. All it needed was a shot in the arm to give it momentum," Sir Brian says.

Subject to the satisfaction of any application, the Trust will pledge $500,000 over three years to a maximum of $200,000 in any given year. A successful project will receive up to $100,000.

Dean Tilyard describes the Fund as "huge for the BCC and the development of start-up businesses in the Manawatu. This partnership is a unique development for New Zealand and recognises the contribution the BCC is making in the development of businesses regionally," he says.

Sir Brian Elwood sees the Fund's objective as helping people with sound ideas but who lack the necessary capital to get underway with a start-up pathway.

"From our perspective the best outcome will be several start-up enterprises leading to the development of the Manawatu economy and the creation of new employment opportunities," he says. "It's one of the Trust's objectives to allocate grants to assist economic growth, business development and employment opportunities of benefit to the community.

"Within the greater Manawatu we have the brains, the research capabilities and the right locations to take advantage of the new economic and financial climate which has emerged from the current world financial crisis."

The Fund will be launched on November 9 and interested companies or individuals should contact the BCC.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news