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Leading Venture Capitalists Back Greenwood Tech

Published: Wed 27 Sep 2000 02:44 PM
Leading Venture Capitalists Back Greenwood Technology
Auckland, 27 September 2000 - Greenwood Technology, IT specialists in the development and deployment of web-based business solutions, today announced that leading venture capital companies Deutsche Capital Partners and Direct Capital Private Equity, together with US technology investor Chris Coffin, have taken a 32% stake in the company.
Simon Greenwood, managing director and principal shareholder in Greenwood, said “This is a superb outcome for Greenwood Technology. We have obtained growth capital from leading and respected players. Their decision to invest demonstrates their confidence in our products and our people. We have doubled our staff over the last year and expect to double it again over the next 12 months as Greenwood continues to enjoy significant growth.”
Greenwood Technology is one of New Zealand’s leading ‘web-centric’ software development companies. Its focus is on developing total e-commerce solutions utilising proprietary development tools that enable software solutions to be developed faster and more efficiently than is possible with other commercially available software. Applications have been developed in the logistics, health, insurance and construction industries.
Greenwood is also a leader in the application service provider (ASP) market. The ASP market is growing rapidly as companies recognise the benefits of renting applications on-line and paying for usage rather than incurring the up front capital and ongoing maintenance and obsolescence costs associated with owned systems.
Chris Coffin, who headed the America True campaign in this year’s America’s Cup, co-founded Touchbase Systems Inc, which was later, sold to U.S. Robotics. Mr Coffin remained with U.S Robotics as vice president until 1996 when he left to establish venture capital company, Vision Ventures. Of his investment in Greenwood, Mr Coffin commented, “Greenwood is a great example of the leading-edge technology being developed here which can go far in the US market. My goal is to help smooth the path for Greenwood in the US and other international markets.”
Deutsche Capital Partners is the local private equity arm of the world’s largest investment bank. As a major global private equity and venture capital player, Deutsche Bank also brings to Greenwood its technology industry expertise.
Scott Perkins, CEO of Deutsche Bank in New Zealand, explained “Greenwood Technology has an edge in one of the most prospective areas of the Internet revolution – enabling companies to improve their productivity and customer service through an Internet-based e-commerce platform. We like the people, the products and were impressed by the value that Greenwood is able to add to their customers.”
Direct Capital has led investments totaling more than $135m in 22 unlisted companies since 1994 and director Bill Kermode commented “Private equity investment is about identifying those companies that have a top tier position in their sector and significant growth prospects. The ASP sector is still in its formative stage in New Zealand but has a growth potential greater than just about any other IT sector today. Greenwood is exceptionally well positioned to benefit from this growth.”
About Greenwood Technology
Greenwood Technology is an end-to-end e-commerce partner, committed to delivering an integrated range of world-class products and services. Greenwood Technology is a truly 'web-centric' company, with expertise in four strategic business areas: software development, nation-wide systems support, application rental and e-commerce and website development. Founded in 1992, Greenwood Technology is based in Auckland.
For further information:
Simon Greenwood, managing director, Greenwood Technology 021 954-242
Scott Perkins, managing director, Deutsche Bank 021 921-692
Bill Kermode, director, Direct Capital Private Equity 021 664-430
Andrea Dahlin, account manager, Botica Conroy & Associates 09-303 3862

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