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

 


NZ angels told to broaden portfolios: Lightning Lab

NZ angels told to broaden portfolios as start-ups pitch at Lightning Lab

By Paul McBeth

May. 28 (BusinessDesk) - New Zealand angel investors are backing too few start-ups and should broaden their portfolios if they want to improve their chance of a return, according to Angel Association chairman Marcel van den Assum.

The success of software companies such as Wellington-based Xero had helped foster an environment where start-ups can flourish, though local angel investors have been reluctant to expand their portfolios, van den Assum, who was part of the successful sale of local software firm GreenButton to Microsoft earlier this month, told an audience at the Lightning Lab demo day in Wellington yesterday.

"A lot of angel investors looking to hit home runs and that places unreasonable pressure on ventures and boards," van den Assum said. "We need to start encouraging angels to broaden their portfolios, and as they start to build the portfolio, it improves their chance of ultimately achieving a successful return."

Van den Assum warned against getting too carried away by the success of the local digital sector, with last year's listings of Wynyard Group, SLI Systems, GeoOP,and the upcoming initial public offerings of Gentrack and Serko.

"We need to be careful we're not marching ahead of expectations," he said.

Van den Assum spoke ahead of pitches by nine start-ups which went through the Lightning Lab's digital accelerator programme to prepare early stage companies for investors. Of the nine companies pitching, eight sought a total of $2.24 million from investors, of which five had already received commitments of $740,000.

Common Ledger, which developed a platform allowing accountants to integrate different accounting software, sought the biggest amount, asking for $550,000, of which half was already subscribed, on a pre-money valuation of $1.75 million to help fund the completion of an enterprise deal with a major accounting firm and boost sales and distribution.

Cloud Cannon, which developed a platform makes it easier for web designers to deploy and maintain websites, asked for $450,000, of which half was committed, to expand its customer base and develop new add-on products. GlassJar, whose software allows shared rentals to better manage their finances, asked for $400,000, with $110,000 in soft commitments, to fund the next 12 months when it plans to develop mobile apps, integrate bank fees into the software and secure 20,000 users before advancing into the US.

CoachSeek, whose software helps sports coaches manage their programmes, asked for $450,000, of which $100,000 was committed at a pre-money valuation of $1 million to fund the next 18 months. Twingl, which developed software to track a secondary school student's learning process, sought $90,000 in a convertible note, with commitments of $30,000, to fund a pilot programme in New Zealand and push into the US.

Floc, whose software allows restaurants to forecast customer traffic, was seeking $100,000 in a convertible note. Keen, whose software connects social media users to meet up for activities offline, sought $150,000. Mish Guru asked for $50,000 in convertible notes to build a platform allowing corporate users to manage social media sites such as Snapchat.

Cogo Digital, whose software helps manage institutional knowledge built up by staff, didn't ask for a specific amount in its pitch.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news