Firms' financing falls under Act 221
By John Duchemin
Advertiser Staff Writer
AssistGuide and Kona Bay Marine Resources joined the list of Hawai'i companies to receive venture financing at the end of 2002 as each drew several hundred thousand dollars in investments.
AssistGuide, a Kailua-based Internet-services company, received $470,000 from local and Mainland investors, said venture capitalist Debra Guerin, whose San Francisco-area firm International Venture Corp. participated in the financing.
Kona Bay, a Big Island aquaculture company, received $380,000, said company president Brian Goldstein.
Both companies were able to capitalize on the high-tech tax incentive known as Act 221, which lets local investors obtain tax credits worth up to 100 percent of their investments. The deals were made at the end of 2002 so some investors could apply the credits against their 2002 taxes, Guerin said.
Several other Hawai'i technology companies have received investments in recent weeks. 'Aiea research firm Hawaii Biotech secured a $3 million appropriation from the U.S. Department of Defense to search for an antidote to anthrax toxins.
Also, Landmark Technologies, a startup maker of wireless Internet equipment, has received $1.5 million in equity investments from sources, including local bankers and the state government's venture financing arm.
AssistGuide sells Internet services and related technology to long-term care providers. The company, which has a small staff in Hawai'i and several branch offices on the Mainland, also has worked on projects with the Hawai'i state government.
AssistGuide raised more than $1 million from local and Mainland investors in late 2001 and earlier in 2002. Guerin said the latest investment is a "bridge financing" to help sustain the company as it tries to raise several million more dollars this year.
Kona Bay has created a shrimp- and clam-breeding system that it claims is more efficient than competing systems. The company is selling high-priced breeding shrimp and bivalve clams to customers in Asia and the U.S.
The company has attempted to raise venture money for several years, but in October 2002 underwent a management change. Guerin said Kona Bay has since impressed investors by signing new customers in Asia.
