By PETER GRIFFIN
Billing system maker Argent Networks has received an $8 million venture-capital injection which it will use to finance pitches for bigger telecoms deals in the Middle East and Africa.
The money comes from TMT Ventures and No 8 Ventures, both fund managers in the Government's Venture Investment Fund. TMT
is investing $5 million and No 8 Ventures adding to its 2001 investment in the Auckland company.
The stakes the companies now hold were not disclosed.
But Argent founder and chief executive Chris Jones said dilution of his own shareholding was a fact of life.
"The direction of the company is supported by everybody," he said.
Argent struck a $3.5 million deal with Iraq Telecom in March and is working on projects in Afghanistan and Liberia. Another African contract will soon be announced.
As the deals Argent was pitching for got bigger, more money was needed to support them.
Jones was reluctant to talk about the progress of the Iraq contract.
"I don't want to put any of our people at risk," he said.
"Yes, there have been issues, but the project is still going ahead."
Gavin Lonergan, investment director for TMT and chairman of the New Zealand Venture Capital Association, said Iraq was a volatile country to be working in but the Middle East as a whole was ripe with opportunities for Argent.
He attributed at least part of TMT's decision to back Argent down to Jones' leadership.
"He's one of the best entrepreneurs I've seen," Lonergan said.
The VIF fund managers have now invested in 14 companies and Lonergan expected two more investments to be named before the end of the year.
"In time we'll look back at 2004 as being the time we started to see the end of the Ice Age and the emergence of better times."
Lonergan, who will host the Venture Capital Association's annual conference in Auckland on Thursday, was particularly pleased to see companies increasingly partnering to make venture capital investments.
"In the New Zealand context that's really vital.
"If our companies are to be successful they have to go offshore and that takes big capital."
TMT Ventures now has five investments through its VIF fund - Argent, EMS Global, GeoSmart, Esphion and another one yet to be disclosed.
