Government renews millions of funding for start-up incubators

Wednesday, 28 June 2017

Science and Innovation Minister Paul Goldsmith rings the bell on more Government funding for tech start-up services on Tuesday.

Business incubators and accelerators will receive$3.9 million in tax-payer funding to help entrepreneurs start new companies.

Science and Innovation Minister Paul Goldsmith announced on Tuesday that some of Callaghan Innovation's most successful start-up support services will continue to get almost $1 million each in funding from July.

Incubators are shared working spaces that provide business advice, mentoring and investment preparation to businesses trying to get off the ground. Accelerators do the same in a shorter space of time.

Hamilton based incubator Soda Inc that matches entrepreneurs in the Bay of Plenty, Gisborne and Hawkes' Bay with experts for advice, will get another $700,000 until 2019.

* Soda Inc buzzing in Waikato * New cash for tech start-ups**

Goldsmith said the Government renewed funding for regional incubators because good business ideas could spawn from anywhere in New Zealand.

'This regional expansion recognises that the tech sector's best ideas do not only come from the main centres, and that improvements such as ultra-fast broadband mean that an export focused start-up could be based just about anywhere from Kaitaia to Bluff,' Goldsmith said.

Auckland's The Icehouse and Wellington's Creative HQ will receive the most money, with $1m each to spend over the next two years.

Incubator Zero Point Ventures will receive $100,000 for the next year in its first round of Government funding.

Agri-tech idea incubator Building Clever Companies will get $800,000 and Ecentre $200,000.

Funding was also confirmed for Wellington's Mahuki Accelerator that fuels cultural business ideas for galleries, libraries, archives and museums.

The Icehouse's Flux Accelerator programme that invests $20,000 to $100,000 into at least six start-up companies each year, will receive some of The Icehouse's funds.

Goldsmith said the Government was committed to preparing the economy for changes in technology.

“Technology businesses create high value jobs, tend to be export focused form day one, and ensure that seismic shifts in global consumer demand will not consign our economy to the dustbin.'