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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news