Rangatira Invests in Konnect Net, Tech-Based Medical and Insurance Service Provider
September 26, 2012
Wellington-based investment company, Rangatira, has invested 3.5 million New Zealand dollars into hi-tech medical and insurance service provider, Konnect Net.
Rangatira will be investing smaller amounts now owing to the potential risks involved with some companies, especially those involved in new technology deployments.
Moving away from the more expensive paper-based administration functions, Konnect Net offers traditional back-office services delivered via new communication technology.
This investment marks the latest tech-based investments made by Rangatira. Previously, Rangatira has invested in online accounting software provider Xero, Facebook (News - Alert) backer Peter Thiel’s Valar Ventures and the Movac 3 investment fund.
It is the trend now to make investments in companies that are looking to adopt new technology to offer traditional business services, according to officials.
Auckland-based Konnect Net gained the distinction of being named New Zealand’s fastest-growing tech company for 2011. A Technology Investment Network TIN100 report highlighted the fact that Konnect witnessed a huge increase in sales by persuading big insurers in the country to use its medical information requests.
Rangatira has offered $1 million to $5 million in investments, as Konnect Net is at an earlier stage of growth and at potentially higher risk. Rangatira will be making an additional $2 million investment next year as a follow-on capital.
In June 2012, Rangatira showed an increased number of investments after exiting Dunlop Living, Tecpak Industries and Te Kairanga Wines in 2011.
With more focus on New Zealand-based companies, Rangatira is also keen on making forays into investment opportunities in Australia. The firm holds around $20 million to be used in future investments.
Murray Gough, chairman of Rangatira, opined that there is a shift in the economy which favors services over manufacturing sectors in New Zealand.
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Edited by Braden Becker