Let’s make a list of the great innovative kiwi companies sold off overseas so the founders could buy a BMW, boat and bach, having failed to raise capital. You’re going to need to start, because I don’t know even one... nzherald.co.nz/nz/the-convers…
Maybe some of these myths were true in the 80s and 90s. I don’t know. But they are well past their expiry date now. I wish we could leave them behind so we can focus on the constraints and barriers we DO have.
1/ Most, if not all, of our most successful companies are funded in part by international investors, which nearly always comes bundles with expertise and networks that are invaluable. This is a measure of the maturity of our ecosystem. We should celebrate this fact.
The market for venture capital is global. A sign of the maturity of our local ecosystem is when we see kiwis investing in ventures overseas. Spoiler: this is already happening.
Related: 2/ There is already an *abundance* of capital available to invest in great kiwi companies - both local and international - and it will continue to grow. The shortage, as it always has been, is in great companies to invest in.
If you can’t raise money for your particular venture there are two possible reasons: 1) you’re not as great as you think or 2) investors don’t know how great you are. Both are your problem to solve. Don’t blame a nonexistent shortage of capital.
3/ Every single founder that I know who has grown a great business and sold it, has gone on to reinvest a significant portion of the proceeds into new ventures. And in many cases large amounts of their time to go with it. THAT is how you grow an ecosystem, and it’s happening.
We’ve got to stop thinking of raising investment as the pinnacle of success. It’s like applauding the pilot of a plane for taking off. The goal is to get to where you want to go and land. Then go again and again. There are lots of different and better definitions of success.
4/ Property investment has no tax advantage over venture investment. There are no capital gains taxes on either. Property investment is seen as lower RISK. It would require significant incentives for venture investors or disincentives for property investors to shift this.
Let’s stop wishing it were easier and start wishing we were better. If we’re waiting for the significant problems with the housing market to be solved first, we’re unlikely to ever get started.
Let’s stop thinking that it’s the government who is the biggest constraint on our success. They can help along the way (first step towards this is to do no harm). But it is teams of individuals working together who come up with new idea and grow them into great businesses.
What am I missing in all of this? Why do these myths persist when the alternative realises seem so obvious to me?
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