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.”


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news