NEWSROOM
Dr Simon Malpas: the urgent need for innovation investment in New Zealand
10 July 2023
Dr Simon Malpas, the CEO and founder of Kitea Health and Professor of Physiology and Bioengineering at Waipapa Taumata Rau, the University of Auckland, recently shared his insights on raising capital and emphasised the importance of investing in innovation for New Zealand’s economic growth and resilience.
Dr Malpas’ entrepreneurial journey began in 2003 and 2004 when he participated in the Velocity entrepreneurship development programme delivered through the Business School’s Centre for Innovation and Entrepreneurship (CIE). A serial entrepreneur, he is currently focused on his latest venture, Kitea Health Ltd, which has created a ground-breaking implantable pressure-sensing device. This device has the potential to improve the lives of millions of patients worldwide who suffer from hydrocephalus or chronic heart conditions.
Kitea, a Māori word meaning detect, observe, or notice, perfectly encapsulates the company’s mission to develop technology that empowers patients to monitor life-threatening symptoms from the comfort of their homes. “The holy grail for us is to help keep people away from hospitals and give them some confidence and autonomy in proactively monitoring their condition,” says Dr Malpas. However, the journey from idea to being commercially available is long and slow. While patient safety is always a number one priority when it comes to new medical technology, raising money for research and development is often the biggest barrier to success.
Innovators not only need good ideas, but they also need to convince investors that their ideas are worth investing in. The initial pitch often involves an element of imagination and storytelling; to capture potential investors’ attention. But Dr Malpas believes it is the post-pitch phase of the capital raising process that is crucially important and advises founders to invest time in preparing well and supporting their vision with evidence. “We set up a very detailed data room to assist with the due-diligence process, and a number of investors that came on board commented that it was the best they had seen.”
Providing supporting information to investors helps improve confidence and move the process forward. However, Dr Malpas notes that founders need to be prepared for delays, as well as being prepared to be turned down.
Kitea Health recently secured an additional $6 million in funding from investors, including the University of Auckland’s research investment and knowledge mobilisation company UniServices. The funding will enable the company to enter the clinical trial phase. Kitea Health is currently working through the process of submitting ethics applications in preparation, after which the plan is to expand into the United States. “We have identified a regulatory pathway, so once established in a major market like the US, the hope is that it will open up opportunities to expand to the rest of the world”.
Dr Malpas firmly believes that New Zealand needs to significantly increase its investment in tech innovation to create a resilient and future-proof economy. “We need to move our economy to be focused more on innovation in its broadest sense, and yet we as a nation are not investing in innovation. Successive governments over the past 20 years have a stated aim of raising the overall investment in R&D above 2% of GDP. None have come close to achieving this.” Unlike the traditional land-based sectors that NZ has focused on in the past, investment in innovative technology would lead to a more resilient economy. “The land is a finite resource, and as we have seen recently, very vulnerable to climate change and adverse weather events.”
As well as investing in research and development, Dr Malpas suggests that New Zealanders must adopt and support a more entrepreneurial mindset and that programmes, such as those run by CIE, play a crucial role in nurturing future founders and fostering a culture of innovation. When Dr Malpas first came up with an idea for a start-up, he struggled to know how to take the idea further, and it was his involvement in Velocity (previously Spark) that was crucial for carving out a path forward. “The University of Auckland is becoming more future-focused, and we will all see the benefits from that.”
Dr Simon Malpas, CEO and founder of Kitea Health
Dr Simon Malpas, CEO and founder of Kitea Health
10 July 2023
Dr Simon Malpas, the CEO and founder of Kitea Health and Professor of Physiology and Bioengineering at Waipapa Taumata Rau, the University of Auckland, recently shared his insights on raising capital and emphasised the importance of investing in innovation for New Zealand’s economic growth and resilience.
Dr Malpas’ entrepreneurial journey began in 2003 and 2004 when he participated in the Velocity entrepreneurship development programme delivered through the Business School’s Centre for Innovation and Entrepreneurship (CIE). A serial entrepreneur, he is currently focused on his latest venture, Kitea Health Ltd, which has created a ground-breaking implantable pressure-sensing device. This device has the potential to improve the lives of millions of patients worldwide who suffer from hydrocephalus or chronic heart conditions.
Kitea, a Māori word meaning detect, observe, or notice, perfectly encapsulates the company’s mission to develop technology that empowers patients to monitor life-threatening symptoms from the comfort of their homes. “The holy grail for us is to help keep people away from hospitals and give them some confidence and autonomy in proactively monitoring their condition,” says Dr Malpas. However, the journey from idea to being commercially available is long and slow. While patient safety is always a number one priority when it comes to new medical technology, raising money for research and development is often the biggest barrier to success.
Innovators not only need good ideas, but they also need to convince investors that their ideas are worth investing in. The initial pitch often involves an element of imagination and storytelling; to capture potential investors’ attention. But Dr Malpas believes it is the post-pitch phase of the capital raising process that is crucially important and advises founders to invest time in preparing well and supporting their vision with evidence. “We set up a very detailed data room to assist with the due-diligence process, and a number of investors that came on board commented that it was the best they had seen.”
Providing supporting information to investors helps improve confidence and move the process forward. However, Dr Malpas notes that founders need to be prepared for delays, as well as being prepared to be turned down.
Kitea Health recently secured an additional $6 million in funding from investors, including the University of Auckland’s research investment and knowledge mobilisation company UniServices. The funding will enable the company to enter the clinical trial phase. Kitea Health is currently working through the process of submitting ethics applications in preparation, after which the plan is to expand into the United States. “We have identified a regulatory pathway, so once established in a major market like the US, the hope is that it will open up opportunities to expand to the rest of the world”.
Dr Malpas firmly believes that New Zealand needs to significantly increase its investment in tech innovation to create a resilient and future-proof economy. “We need to move our economy to be focused more on innovation in its broadest sense, and yet we as a nation are not investing in innovation. Successive governments over the past 20 years have a stated aim of raising the overall investment in R&D above 2% of GDP. None have come close to achieving this.” Unlike the traditional land-based sectors that NZ has focused on in the past, investment in innovative technology would lead to a more resilient economy. “The land is a finite resource, and as we have seen recently, very vulnerable to climate change and adverse weather events.”
As well as investing in research and development, Dr Malpas suggests that New Zealanders must adopt and support a more entrepreneurial mindset and that programmes, such as those run by CIE, play a crucial role in nurturing future founders and fostering a culture of innovation. When Dr Malpas first came up with an idea for a start-up, he struggled to know how to take the idea further, and it was his involvement in Velocity (previously Spark) that was crucial for carving out a path forward. “The University of Auckland is becoming more future-focused, and we will all see the benefits from that.”
EMAIL
CIE@AUCKLAND.AC.NZ
POSTAL ADDRESS
THE UNIVERSITY OF AUCKLAND BUSINESS SCHOOL
PRIVATE BAG 92019, AUCKLAND
