American tech giant Amazon is set to give a boost to start-ups in New Zealand. AWS, Amazon Web Services, a subsidiary of Amazon Inc. will bring investors and startups together in New Zealand by joining hands with NZTE. In an attempt to boost and promote startups, cloud computing giant AWS has brought 18 New Zealand start-ups and representatives from 20 foreign investors on the same page in Wellington. The event organized by Amazon is hailed as the first of its kind where investors and startups are will come face to face with each other.
Each start-up has five minutes to lay forward their ideas and projects in front of the investor. The events held in Wellington and Auckland, two of the largest commercial hubs in the country. Senior AWS executive Ian Gardiner has been given the job to make sure that start-ups in New Zealand and Australia get the necessary boost. The start-ups should make the maximum use of AWS’ massive data center facilities the nearest of which stands in the Australia’s Sydney.
AWS is not investing directly in the Kiwi start-ups but the company feels that a great relationship between start-ups and venture capitalists will eventually benefit AWS in the long run. The start-ups will use more of AWS services which will lead to better revenues for the company. To help better relation and tie-ups between start-ups and venture capitalists, NTZE has already contributed $25,000 to organize such sessions. Many of the venture capital firms, especially from Australia have already started calling New Zealand as a serious and healthy market. A great example is Airtree which had invested a large chunk of investment in Auckland based “gig economy”, 90 seconds.
Start-ups in New Zealand are welcoming this move as they believe this will get more ideas to get off the ground. The investors, on the other hand, are looking to tap almost half of the market in New Zealand by 2020. The reason AWS chose New Zealand is that the country has a huge and thriving start-up ecosystem. According to New Zealand Venture Capital Association, the startup investment in New Zealand has risen significantly over the past one year. With a rise of almost 50% the investment value today stands at $92m in the previous year. The private equity investment, on the other hand, has tripled to a whopping $1.2b.