E-Business
Issue No. 4 - February/March 2002
South Australia’s IT ‘money magnet’
In the early 1990s the information economy started to pick up pace, giving rise to a number of South Australian initiatives including the nationally recognised Ngapartji Multimedia Centre and the creation of five additional chairs in IT in the state’s universities.
Playford Capital, formerly known as the Playford Centre, was established in 1997 by the government of South Australia and was funded in part by the EDS contribution to industry development.
“The principal objective of Playford Capital is to help kick-start Information and Communications Technology (ICT) businesses in South Australia,” said CEO Geoff Thomas. “As South Australia’s leading ICT investor, Playford Capital is in the business of making a real difference to the sector here in our state.”
Since its inception, Playford has worked with more than 150 businesses and invested more than $6 million in 24 South Australian companies. These companies turn over approximately $7.5 million per annum, of which $2.5 million is generated by export.
In 2001 Playford partnered with Ngapartji to secure $10 million of the Federal government’s Building on IT Strengths (BITS) funding. In recognition of the importance of the ICT industry to South Australia, the SA government is funding Playford Capital’s operating expenses, ensuring that all of the BITS funds are directed towards ICT companies.
Playford will invest amounts of $200,000–$400,000 in companies and aims to make 25 to 35 investments over the next three years. For the first time, too, Playford Capital is able to make equity investments into companies. (Originally, Playford supported companies by way of grants recouped from a royalty base flowing from increased sales.)
Mr Thomas recommended that budding entrepreneurs educate themselves as to how the private investment and venture capital markets work. Playford holds regular open-invitation information sessions at month...
