The Dark Net

Bill Bennett:

Key point for me is Simpson’s last sentence:
“Just a thought, but maybe we should make it more about the companies and less about the investors.”

Sure, we couldn’t have most of these wonderful innovative companies without investor money, but the emphasis on investors is wrong, unless you’re writing news stories purely for investors to read.

Originally posted on Rowan Simpson:

NZVIF have released their latest Young Company Finance report. The report includes a list of all of the companies that raised new capital so far in 2014. It is an appallingly incomplete list. These are the companies that I know of they have missed:

I’m sure there are many others. Please add a comment to this post if you can give me more names. If you add up the amount raised by just those I’ve listed it comes to more than the $23m that is reported, meaning they miscalculate the amount of investment by at least half. No wonder officials are convinced there is a shortage…

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Chorus warns Australia on structural separation

Chorus manager of marketing strategy and insight Rosalie Nelson warned Australia’s telecommunications industry on the risks of New Zealand-style full structural separation. She was speaking at the CommsDay Melbourne Congress and reported in Communications Day.

Nelson’s comments come as Optus chairman Paul O’Sullivan calls for Telstra to split along similar lines to Telecom NZ (now Spark) and Chorus.

When Chorus demerged from Telecom NZ, it inherited the copper network, a considerable share of the former company’s debt and almost all the regulatory obligations.

Nelson says the Commerce Commission ruling on the price Chorus can charge telcos and ISPs to use the copper has hurt its ability to pay for the fibre network.

While the arguments are well-known, what isn’t widely understood is how dependent Chorus is on revenue from the copper network and how it doesn’t get to set the prices for copper services.

She says that for every dollar the government puts into the UFB build, Chorus puts in two. For every dollar Chorus earns it needs 60 cents of capital expenditure.

Nelson says the assumption telecommunications is like other utilities needs questioning because it is subject to rapid change. That leads to uncertainty — yet investors are usually drawn to utilities because of their stability and relative certainty.

She warns Australian telcos to make sure all their funding sources are secure before taking part in an industry restructure.