Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Crowd-funding and angels could combine

Media Release
Crowd-funding and angels could combine

PRESS RELEASE: 3 March 2014

The New Zealand Venture Investment Fund says new rules permitting equity crowd-funding investments for start-ups could allow angel investors to develop platforms to integrate crowd-funding with their investments.

“The Financial Markets Conduct Act 2013’s provisions permitting crowd-funding in New Zealand come into effect on 1 April. We have watched the development of crowd-funding investment in the United States and believe it could have a positive impact on New Zealand start-ups,” says Franceska Banga, NZVIF’s chief executive.

“The early stage investment community, and particularly angel networks and investors, need to consider how crowd-funding can be integrated with existing investment platforms in order to increase the capital available to young start-up companies.

“Angel investment has become, over the past decade, an important source of capital for start-ups. At the same time, non-equity crowd-funding platforms, like Kickstarter, have seen exponential growth, especially in music, design and consumer products.

“These new rules provide the opportunity to design new platforms which bring together the best of angel investing with the best of crowd-funding.

“The United States is leading the way. Angel List, for example, has developed a platform which enables start-ups which have received a certain level of angel investment to then be able to seek further capital from crowd-funding.

“The benefit of this sort of structure is that it opens up angel-backed companies to a much broader pool of investors. People keen to invest through a crowd-funding platform might be more attracted to an investment proposition which has already attracted angel investors and due diligence has been done. They might also want the assurance that the investment is properly executed, and includes appropriate investor protections.

“This type of crowd-funded investing will be high risk – just as all early stage investment is high risk. But if it allows new start-up companies with a good business opportunity to attract both angel investors and crowd-funding, that should be positive for their development.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


New Bill Introduced: GST On Online Services

These measures are an important first step in the Government’s efforts to deal with increasing volumes of online services and other intangibles purchased from overseas suppliers that should, under New Zealand’s tax rules, be subject to GST. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news