4 Nov 2019

Today's business news: What you need to know

3:30 pm on 4 November 2019

Latest - Local start ups are increasingly relying on offshore funding to help them traverse the so-called valley of death.

PWC building logo in Auckland Central City

Photo: RNZ / Claire Eastham-Farrelly

It's the term often used to describe the difficulties and risks young companies face in getting enough funding to grow their business beyond the early stage - and it's the subject of PwC's latest research.

The advisory firm's found the proportion of offshore funding in local start ups has grown from nothing to almost a quarter in the past 12 years.

PwC partner Anand Reddy said it's well known that there's not a lot of growth capital out there for start ups, but offshore investors are filling the gap.

Evolve expands in Australia

The early childhood education provider is rolling ahead full steam with its Australia expansion, purchasing another five childcare centres.

The centres across Queensland and Victoria come at a cost of more than $AU7.5 million upfront, plus a performance-based payment of $1.5m.

They're in addition to the five centres the company bought last month.

Evolve said it plans to fund the acquisitions through a combination of cash and a share issue.

AFT adjusts full year profit expectations

AFT Pharmaceuticals said it will book a one-off, non-cash gain of nearly $10 million in full year underlying operating profit because of accounting changes.

It now expects the profit to be in a range of nearly $19 million and $22m.

The gain comes from an accounting change which makes it add the full value of its increased stake in a product development partnership.

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