Dodson Motorsport: Finding Another Gear
It’s a classic kiwi success story – one day Harry Dodson decided to start a business in his garage in Albany. Fast forward 35 years, and now Dodson’s business, Dodson Motorsport, is a world leader in aftermarket dual clutch transmission components for high-end and performance vehicles. Dodson has a global network of over 200 dealers and distributors worldwide, and its products have been used to set over 30 world records.
By the mid-2010s the business was cruising from strength to strength. Then last year, Dodson hit a speedbump. The business was growing rapidly and needed more capital to keep up. Dodson’s co-managing directors Harry and Glenn were looking to raise additional growth capital and also sell down some of their existing shareholdings in the business.
Many kiwi entrepreneurs experience the struggles of New Zealand’s funding gap. An exciting private kiwi venture gets halted because it has run out of capital and is struggling to source more – it’s an unfortunate, yet common story.
In New Zealand, there is very little funding available for start-up businesses to progress onto the next level. New Zealand has a healthy angel investment sector – last year $80 million was invested in early stage companies. However, once those early stage businesses mature into an expansionary stage, the funding available drops. In 2018, only $20 million of domestic venture capital funding was invested into businesses at the expansion stage. [1]
So, Dodson enlisted the help of professionals – Armillary Private Capital. Armillary is a boutique investment banking firm with extensive experience in raising capital in New Zealand. Its purpose is to enable success for businesses, business owners and investors and its work with Dodson exemplifies this.
Armillary successfully facilitated Booster Tahi’s investment in Dodson Motorsport. Booster Tahi is a special investment fund dedicated to supporting private New Zealand SME’s. The fund is all about helping Kiwi’s invest in successful kiwi ventures, so the profits and talent stay in New Zealand.
Needless to say, it was a perfect fit! Booster Tahi is passionate about supporting kiwi ingenuity and innovation and helping New Zealand companies take this to the world stage. On the other hand, Dodson has passionate people committed to its products, its innovation and its global expertise in creating true game changers in an industry.
Booster Tahi secured a 35% share in Dodson, as well as representation on its board.
Representation on Dodson’s board benefits both Booster Tahi and Dodson. Having someone on Dodson’s board not only gives Booster insight into how its capital is being utilised, but also enables the investor to help the company reach its potential. Dodson also benefits from this representation because of the expertise and networks that Booster Tahi brings to the table.
“We wanted to maintain [Dodson’s] position of being a global leader in the modified performance vehicle sector. Tahi’s investment enables us to grow through speed to market and create more jobs here in New Zealand” said Harry in a Good Returns article. [2]
The investment will also enable Dodson Motorsport to relocate to an enhanced fit-for-purpose facility, purchase new equipment and increase its level of research and development in New Zealand, rather than having to rely on offshore development.
Regarding this successful investment, in their media release, Booster’s managing director Allan Yeo said that “this is the kind of innovation and inventiveness that embodies everything we stand for… By securing this investment, Booster will continue to practice our philosophy of backing New Zealand businesses”. [3]
Dodson Motorsport is a classic kiwi success story – one where kiwi capital is being applied to a kiwi business, enabling success for Dodson, Harry and Glenn, and Booster Tahi’s investors.
[1] https://thespinoff.co.nz/business/16-04-2019/closing-the-gap-why-this-budget-may-offer-hope-for-cash-starved-nz-firms/
[2] https://www.goodreturns.co.nz/article/976515102/tahi-backs-motorsport.html
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