by Peter Mellalieu
Willis, A., Mellalieu, P. J., & Emerson, L. (2000). Walking the Streets: Shareholder Profiles and Perspectives on a High Technology Startup Company. Proceedings of the Annual Educators Conference of the New Zealand Strategic Management Society, 2 (Vol. 1). Presented at the Strategies for sustainability and success: the role and impact of strategic thinking in the development of sustainable enterprise, Canterbury University, Christchurch: New Zealand Strategic Management Society.
How does a high technology enterprise based in a remote, small sector economy raise over $US 10 million from 600... more
How does a high technology enterprise based in a remote, small sector economy raise over $US 10 million from 600 shareholders for an ambitious new venture that challenges global corporations, and relies for its success on the creation of a market for the electric-powered motor vehicle – a product hitherto offering few – if any – consumer advantages over the ubiquitous fossil fuel-powered vehicle?
The New Zealand venture capital market has in recent years faced a ‘bad press’, with many business and political leaders complaining at the dearth of capital made available by banks and other financial institutions for the foundation of small scale, high technology enterprise. Accordingly, the founders of Pacific Lithium Limited (PLL), resorted to ‘walking the streets and knocking on doors’. PLL eventually built up a loyal shareholder ‘family’ whose members included a diverse mix including a prestigious Japanese trading corporation, Nisho Iwai, the Singapore Government, several high-profile domestic businessmen and a gaggle of what initially appear to be ordinary New Zealand folk.
The article reports on a survey of the shareholder investors in PLL, a technology-based startup company whose foundation was reported in PECNZSM Vol 1, No 1, 1999. The survey identifies the demographic profiles of the shareholders, why and how they went about investing in PLL, and their attitudes to technology-based risk-venture investments in general. The article concludes with implications of the research for investors, entrepreneurs and Government policy makers – and speculates on the implications for investors of the NZSE’s New Capital Market due to be launched in mid-2000.
Note:
This article accompanies a series of cases. For a Case Resource library providing see:
Mellalieu, P. J. (n.d.). Pacific Lithium Ltd - Case resource library. Retrieved July 1, 2009, from http://tinyurl.com/pllcase1
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