The magazine for angel investors
Welcome to the October 2019 edition of Startup Investment magazine.
We hope you enjoy this latest edition of Startup Investment.
The latest Young Company Index data shows offshore funding in New Zealand startups has grown exponentially since 2006. In 2018, 23% of startups received offshore funding, with an average round size of $4 million, compared to an average round size of $573k for those without. While those in the software & services and technology hardware sectors have benefited most from this investment, their success puts New Zealand on the world stage as a great place to find investment opportunities in innovative startups.
Australian venture capital firms BlackBird Ventures and AirTree Ventures (interviewed in this edition) see New Zealand’s emerging world class talent as a key point of difference for New Zealand when they’re looking for investment opportunities.
Another positive trend emerging is the wide range of Government support provided to startups, from pre-seed through to Series A. This can have a significant impact on a startup’s growth trajectory. During the first half of 2019, KiwiNet provided $1.14m of pre-seed grant funding to early stage startups. The Government’s co-investment fund provides additional opportunities for more developed startups looking to obtain Series A funding to scale their businesses.
Data collected by New Zealand Trade & Enterprise and shared in this edition shows that startups working closely with NZTE contribute a 35% increase in the number of deals concluded, with a strong interest from markets in Australia, Asia and the US. Looking forward, the Government’s $300m funding into venture capital, and changes to the R&D grants and tax incentive regimes should give the start-up ecosystem a further boost.
These trends demonstrate just how exciting it is to be a part of the startup ecosystem in New Zealand right now.