Escalator Service hits funding record

31 March 2006

Escalator Service hits funding record

The investment-oriented Escalator business growth service has passed a record $10m in assisting with capital raising for SMEs in the first three months of this year.

This more than doubles the total amount raised for the 2005-06 year. The NZTE-funded operation was developed to assist high growth firms and entrepreneurs raise equity investment or complete strategic partnerships and licensing opportunities.

The Escalator service reported a total of $10.195m of capital raised for 10 firms during the first quarter of 2006. The majority of the transactions were arranged between individual investors and the firms plus one venture capital transaction.

Tim Robertson, Escalator Project Manager says this brings the total capital raised with assistance from Escalator to $37.095m for 46 firms since its launch in November 2003

“Escalator brokers have assisted over 120 firms attempt equity or non-equity deals to assist with business growth. More than 30 firms are still actively seeking capital; be it from the venture capital community, angel investment groups or individual investors.”

Tim Robertson says a number of companies are also looking for non-equity deal making assistance in strategic partnerships, licensing and joint ventures. To date Escalator has assisted in completing five successful strategic partnerships.

Successful firms are represented in all industries and all stages, especially early expansion opportunities from the ICT, manufacturing and food & beverage sectors. Deals have ranged in size from $95,000 to $4m+ with capital used for a range of growth strategies including market development and ongoing R&D.

The Escalator service helps businesses prepare for a deal, provides assessment and advice for business on their investment readiness, specialised training, and in numerous cases has helped businesses raise capital (equity) or complete a non-equity deal (licensing, joint venture or strategic partnerships).

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