A new partnership involving Dunedin's Upstart business incubator has been described as a ''game-changer'' for the start-up scene in Otago.
Upstart, which is jointly owned by the Dunedin City Council, University of Otago and Otago Polytechnic, has teamed up with Christchurch-based seed fund investor powerHouse Ventures Ltd.
The partnership would allow for three or more local technology-based businesses each year to receive six-figure sums in early stage investment funding.
While there were plenty of great technology-based business concepts in Otago, they had, until now, been starved of funds at the very early stage, before they were ready even to approach business angels, Upstart chief executive Steve Silvey said.
''This seed funding, combined with active incubation support, allows technology businesses to get going where previously they may have languished on the drawing board, run out of steam, or left the city altogether to seek funding elsewhere,'' Mr Silvey said.
Upstart and powerHouse would jointly fundraise from investors across the country, including Otago.
The partnership provided an opportunity for Otago investors to access a portfolio of early stage companies at a cost as low as $10,000 while also bringing further investment into the region, he said.
An investment committee comprising experienced investor representatives appointed by Upstart and powerHouse would make the investment decisions.
Upstart chairman Geoff Thomas said the partnership was an important part of the emerging start-up scene in Dunedin.
''This, plus a range of other initiatives, all aligned with Dunedin's economic development strategy, is contributing to Dunedin becoming a vibrant and exciting city in which to start and grow a technology business,'' Mr Thomas said.
Earlier this year, Upstart moved premises and is now based at Otago Polytechnic, which was working out well, as it worked closely with the tertiary sector, Mr Silvey said.
There was a team of three but they would be looking to expand numbers over the next few months, he said.
