Year Book 2020

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LEFT TO RIGHT, 1ST ROW: BILL, NINA, JAKE, COURTNEY, JORDAN; 2ND ROW: KELLY, JOSH, KIRSTEN, JULIAN, LARA. ENTERPRISE ANGELS Growing strongly and widening scope to impact investing ENTERPRISE ANGELS HAS BEEN A key component of the Bay of Plenty’s entrepreneurial ecosystem since its launch in 2008. The brainchild of Bill Murphy, Enterprise Angels has continued to expand to over 200 members, three well-supported early stage funds, and now – impact investing. Since inception it has facilitated investment of $48.2 million* in 84 earlystage companies. Enterprise Angels has evolved to be the largest and best-resourced angel group in the country, most recently closing its largest fund to date, EA Fund 3, on $3 million. “EA Fund 3 will invest in 15-plus innovative, high-growth New Zealand businesses over the next two-to-three years,” said Enterprise Angels Chief Executive Nina Le Lievre. “Having a fund of this size benefits not only our fund investors and the startups it supports, but also the wider Enterprise Angels group, enabling us to attract better deals.” Startups and founders Why is angel investing more important now than ever? In any given economy, startups account for over 45 percent of all net new job growth. Enterprise Angels portfolio companies alone have enabled 1,500 jobs, 350 of those local. And in tough times, there are always opportunities. As Bill Murphy notes, some great companies have been launched during weak economic periods. “There will be growth sectors in an environment like this – startups creating efficiency products and services as well as improvements in remote capabilities to name a few and these startups will require capital and support to grow,” he said. Adds Le Lievre: “Angels tend to be highrisk investors using money that is most often ‘already earned and put away’ so it tends to not be as affected by financial or economic crises.” Impact Investing Bill Murphy has already widened the scope of investing in the region by the pioneering launch of Purpose Capital. This regionally based and focused fund is aimed at expanding the growth in New Zealand of impact investing – investments made with the intention of generating a social or environmental impact alongside a financial return – which has been growing globally. Purpose Capital has been backed initially by cornerstone investments from trusts including Bay Trust, Acorn Foundation, TECT, WEL Energy Trust, and others, and has achieved its first close of $20 million. The fund was conceived as a partnership between the commercial and philanthropic sectors. Now Enterprise Angels is introducing the concept of investing in early stage social enterprises to interested angel investors. Kristen Joiner, Director of Impact Investing, explains that Enterprise Angels has spent the past year reviewing impact investing trends and exploring the needs of both investors and impact entrepreneurs. The group surveyed and interviewed members to gauge their potential interest and to get a sense of what kinds of entities would be of interest. “Most of our angel investors want to make a difference,” she said. “Early stage investing is by its nature highly risky. But people cared a lot about issues such as the environment, climate change, etc. “Typically, angel investors are looking for investments that can scale and they can get their money back through a liquidation event – a trade sale or IPO. But we found our members were not necessarily interested in getting cash back through a liquidation event in an impact investment but were open to options such as receiving cash dividends.” Enterprise Angels is planning to bring angel investors together with impact start ups in the group’s regular pitch meetings as well as at Impact Coffee Groups. And while the group expected 2020 to be challenging, the same angel investing rules as always applied, says Le Lievre. “Diversify, think long-term, do your due diligence and remember that your networks and experience are as important as the capital you invest.” *At time of publishing 07 571 2520 ENTERPRISEANGELS.CO.NZ/ INVEST/ 36 | YEAR BOOK 2020
EASTERN BOP well-positioned for the future BY KARL GRADON, Karl Gradon is GM Strategy for TOI EDA, the Eastern Bay of Plenty economic development agency DESPITE THE WHAKAARI ERUPTION AND COVID-19 bringing challenges to the local and national economy, the Eastern Bay of Plenty (EBOP) has good reason to see a bright future. It was designated a surge region by the Provincial Growth Fund (PGF) two years ago and has attracted significant investments. With has strong primary industry sectors, such as forestry, kiwifruit and dairy, the EBOP is poised to potentially slingshot out of the post- COVID-19 world with good momentum ahead of the rest of New Zealand. The 2017 EBOP strategic development plan, sponsored by the Regional Growth Leadership Group, made up of all civic and iwi leaders in the subregion, identified four key catalytic areas of focus to push for PGF support so that the outcome would be meaningful jobs for the local population. Stretching from the rich soils of Raukokore in the East, to the geothermal energy hotspot in Kawerau in the West, the EBOP has been taking a long term and highly focused approach to growth. This has included High Value Horticulture projects, such as irrigation for kiwifruit and the planting of blueberries; an “inland port” rail terminal built alongside the existing powerhouse manufacturing hub in Kawerau, and supporting the high growth aquaculture industry in Opotiki with a new processing plant and harbour. New commercial boat harbour We are supporting the marine sector with a new commercial boat harbour in Whakatane, which boasts two of the three largest boatbuilders in the country and some of the country’s best offshore tourism attractions. Altogether they have been successful in securing over $200 million in PGF funding in recent months. Much of this funding comes with matched funding from private and local government investment, which means the region will be able to create up to 7,000 direct, indirect and induced jobs by 2030. In a region with a population of 48,000 people, this is significant growth and underpins the Toi EDA’s strategy of Creating Thriving Communities. The region originally identified that the biggest job growth opportunities would be only realised by working collaboratively across Maori businesses and Trusts, local government and private investors. Some of the most successful local companies are Maori owned and in a region with 48 percent of the population being Maori this bodes well for future economic leadership. This collaborative approach has delivered significant outcomes for the region, with the confirmed PGF funds more than double the original targets. With a regional GDP of $1.9 billion, this scale of capital investment is a major economic outcome for a region that for many years lagged behind the rest of New Zealand’s growth rates. The key to this investment is making sure that the activities result in meaningful and sustainable job creation. Momentum continues to build Even in the midst of our COVID-19 lockdown, the momentum continued to build, with several announcements made during the Level Two period with the start-up of the Whakatohea Mussels processing factory construction project, the reopening of major quarries in Opotiki, and the tendering for the strengthening of the Whakatane wharf. The awarding of contracts will happen as quickly as possible to create a muchneeded stimulus in the post-COVID-19 world. The projects are happening now, ahead of the rest of the country, which is great news for the region. With the newly created jobs now becoming a reality, the region is confronting new challenges. There are the obvious constraints to growth to resolve, such as housing availability and digital connectivity to the out lying regions. With the recent significant increases in house prices across the region and the continued demand for quality housing, the EBOP is experiencing a real affordability issue. The intent is to attract home talent from across the country to be part of the boom in jobs, and creating affordable housing options is a key outcome that Toi EDA is working with local partners on resolving. The future is bright for the EBOP. The region is surging ahead and has every right to be proud of the hard work put in over the past two years to now be in a position to create a generational difference. There is real hope in the region and a sense of positivity and cando attitude is coming to the fore to make the most of these opportunities. KARL GRADON. YEAR BOOK 2020 | 37
Page 1 and 2: YEAR BOOK CELEBRATING BAY BUSINESS
Page 3 and 4: BAY OF PLENTY BUSINESS STAYS FOCUSE
Page 5 and 6: FIRST THE PANDEMIC, NOW THE ECONOMY
Page 7 and 8: FORSYTH BARR Invest with confidence
Page 9 and 10: SHARP TUDHOPE LAWYERS HAVE BEEN in
Page 11 and 12: TAURANGA CROSSING SHOPPING CENTRE I
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Page 15 and 16: than if our home grown produce went
Page 17 and 18: is a desirable and increasingly sou
Page 19 and 20: in the Bay of Plenty and is often c
Page 21 and 22: COVID-19 could be the catalyst we n
Page 23 and 24: CRAIGS COMMUNITY GIVING PROGRAMME I
Page 25 and 26: SCOTT MCKENZIE, CEO, PMG. and provi
Page 27 and 28: Townhouses Artistic Representation
Page 29 and 30: Priority One and Tourism Bay of Ple
Page 31 and 32: to develop more land stock, but als
Page 33 and 34: noticeable difference compared to g
Page 35: Together, Creating the Best Soil an
Page 39 and 40: inging the port’s fleet to nine.
Page 41 and 42: BY LUCY HILL, Trustpower 2019 Apoll
Page 43 and 44: “In 2019, Bayleys Tauranga was cr
Page 45 and 46: for the outstanding marine life, to
Page 47 and 48: manufacturing to create waste-free,
Page 49 and 50: Kerr’s unique approach and knowle
Page 51 and 52: tompkinswake.co.nz Which local law

Year Book 2020

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