Inward Investment in Wales

Written evidence submitted by Pingar LP

· Pingar was appointed in 2008 under the UKTI’s Global Entrepreneur’s Programme

· Over the past 18 months we have invested from NZ over £250,000 into Kaimai Research, initially a modest operation in Swansea with a view to long term growth.

· We originally investigated opening a European research operation in the East of England (East of England International) or Wales:

· We chose Swansea NOT for Financial Incentive reasons primarily but on skills from Swansea University and in particular Professor Matt Jones who has significant world leading knowledge and experience working with Waikato University in New Zealand and the energy we felt when engaging with our IBW contacts.

· IBW: Once the introduction was made at a NZTE meeting we were extremely impressed by the thoroughness and excellent support we received from IBW (non-financial). In particular Catrin Kemp and the team in London, Cardiff. The IBW New Zealand/Australia office and staff were actively engaged with NZTE and provided every assistance in promoting Pingar in NZ and UK.

· We moved to Technium 1 in Swansea and engaged two graduates with assistance of IT Wales at Swansea University and subsequently moved to Digital Technium.

· We launched at MP sponsored event at the House of Commons in November 2009 we announced our intention to jointly form with the University of Wales (POWIS) and the University of Waikato (supported in NZ by FRST and Priority One, Bay of Plenty regional development authority) a two centre research and PhD student exchange programme and the development of a centre of research and development excellence known as ‘The Centre of Knowledge Engineering’. This is still on going.

· We have now signed sponsorship contracts with Software Alliance Wales for four 4th year students and a Swansea graduate to undertake a PhD research under the KESS (WAG/EU) programme.

Executive Summary

1. Pingar LP was formed in New Zealand in 2008 as a privately funded Limited Partnership and has developed significant IP in Search Summarisation and Content Monetisation. Private investment and financial assistance from the New Zealand government’s Foundation for Research, Science and Technology and NZTE enabled us to develop world leading research and development with the Universities of Waikato and AUT (Auckland).

2. Pingar was chosen as a NZ company of high growth potential and is a member of the New Zealand governments ‘Beachead’ programme. With that comes matched financial assistance and leading mentoring programme in the UK, USA and Asia in order to grow the organisations position outside of New Zealand.

3. We are about to expand but due to the change in the UK immigration policy we are now unable to locate our original Swansea University graduate (Hong Kong national) who has developed our Chinese Search product we recently launched in Beijing with Microsoft and the New Zealand Government. Also if our application for a larger office facility at the Digital Technium is rejected the board is seriously reconsidering our future in growing our facility in Wales.

Recommendations:

1. The concept of a single investment fund is innovative and should remain. ‘Time to decision’ is a key factor for competitive advantage and our recommendation is that the New Zealand government/FRST research grant’s timely application process should be considered.

2. The Welsh Assembly government should review the New Zealand support and assistance for perceived ‘High Growth’ companies and the Beachead programme for overseas growth assistance.

3. SIF grants should remain and flexible with regard to speed of decisions but access to early stage and International growth Venture funds should be a priority. Finance Wales as a venture fund vehicle should be reviewed. New Zealand introduced the Limited Partner investment tax incentive programme and was well received by single investors. No capital gains tax was also a boost to investment.

4. University of Wales in particular should be supported in continuing to engage Internationally with leading global universities in developing joint PhD programmes and development of world leading ‘Centres of Research Excellence’ in Wales, and the subsequent engagement with all Welsh Universities for mutual benefit.

5. UK immigration policy for SME’s who are actively engaged in Wales by recruiting graduates from Welsh Universities should be reviewed in order to allow these skills to remain in Wales. The inability to retain the skills that they have learnt whilst graduating in the universities of Wales will be detrimental to long term skills retention and competitiveness.

6. The Technium concept of incubation is of the highest quality and an excellent support programme but the application process seems unwieldy and a barrier to many SME’s with no track record.

November 2010