New Zealand: government funding for technology companies.
Thursday, March 27th, 2008Ok i don’t often talk about my own business here but time to throw a story out for comment.
As some of you know I am a director of VortexDNA, a technology company based here in Christchurch. Now a while ago we were told we could get a grant from New Zealand Trade and Enterprise, which is our economic development agency for developer resources. Great we thought because we were short handed in that department and had plenty of work available.
We applied and were fortunate enough to receive $20,000 for a developer. I’ll state now that I am not a fan of government grants at all but if it’s available then I guess you have to take it.
The developer did some work for us and was very good. We decided to reward him with some stock in the company as we do with pretty much anyone who does anything worthwhile for us. It’s a measure of our gratitude and a desire to make people part of what they help create. Sounds good?
Well no not according to NZTE who have told us we were in breach of some clause in the agreement which states there can be no financial arrangement between the company and the developer. Stone the crows!
The audit people from NZTE have played firm with the rules and told us we have to repay the money and to add insult to injury we have been placed on a high risk register for any future application.
Needless to say the directors are fuming.
And I am even more convinced that government should stay well out of business.
Meanwhile we continue to expand into the US, UK and even Russia.
Under our own steam no doubt!
