28 February 2006

Fledgling companies showing high growth potential

Ninety-eight companies so far have graduated from the government's incubator programme, with thirty-nine already showing good high growth potential, Economic Development Minister Trevor Mallard announced today.

"The government’s support for incubators recognises the significant role played by incubators in ensuring fledgling entrepreneurs have the chance to establish businesses to commercialise their innovative ideas," Trevor Mallard said at the Telecom Incubator Awards today.

"Our government is committed to continuing its work in transforming the New Zealand economy into a high value, innovative export-led economy, and this programme plays an important role here. Incubators are an important source of innovative, high-growth companies that will help drive this transformation.

"It is vital that our businesses embrace innovation as it provides New Zealand the opportunity to lift economic performance and better integrate into the global economy."

Business incubators have received over $13 million through New Zealand Trade and Enterprise’s annual incubator support programme, since the programme started in 2001.

To date 98 companies have graduated from incubators funded under the programme. Thirty-nine of these are classified as high growth companies and as such have the potential to become multi-million dollar international enterprises.

In addition, these companies have raised almost $37 million in external capital to support their growth.

Last year 157 companies were resident in incubators employing 743 people and earning revenues in excess of $27 million.

“The creative talent of our top entrepreneurs needs to be nurtured and given a chance to grow. The success of the companies being celebrated at the awards today is a tangible example of how incubation encourages innovation and is helping to create new types of businesses that will diversify the New Zealand economy.

"Congratulations to tonight's award winners, and congratulations also to the incubator programme graduates which are operating throughout New Zealand.”

The winners of the Telecom New Zealand Incubators Awards will be available at www.incubators.org.nz

A list of companies which graduated from the incubators in the last year, including the high-growth potential companies, follows.

About business incubators
A business incubator is a facility designed to assist businesses to become established and profitable during their start-up phase.

The incubator does this by providing shared premises, business advice, business services, networking, mentoring, and a full time manager.
The incubation period for an individual business is normally one to three years.

United States statistics show that Business Incubators increase the success rate of start-ups from 20 per cent to 87 per cent.

Business Incubator graduates in the last 12 months (by region)

Icehouse incubator, Auckland
Mobile Commerce (high growth)
Nexus 6 (high growth)
Native Tongue
Biomatters (high growth)
eCargo Limited (high growth)
Red Sky (high growth)
Ki Te Reo (since changed their name to Creatix)
e-centre incubator, Auckland
S4 Technology (high growth)
Bi Predict Ltd
Esphion (high growth)
EDX Ltd
Innovation Waikato Incubator, Hamilton
Rezare Ltd
Creative HQ incubator, Wellington
Virtual Katy (high growth)
Smarter than Jack (high growth)
Cultureflow NZ (high growth)
Calcium Communications Ltd (high growth)
Spikefin
Canterbury Innovation Incubator, Christchurch
e-lands communications (high growth)
One Glass Eye (high growth)
Desynz (high growth)
Stellure (high growth)
Upstart incubator, Dunedin
Phillipa Beaton Design Ltd
Charmaine Reveley

ENDS

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