ICE Angels Marks Second Year

ICE Angels Marks Second Year; Gains Traction In Investment Industry

Media information: 12 September 2005.

The country's most active angel investment group has just marked the end of its second year with increased activity including over 50 applications and four successful investments, a fifth on the way and several entrepreneurial businesses poised in the pre-selection stage.

The ICE Angels, founded by The ICEHOUSE, now has over 60 members and was successful in forming a Bay of Plenty chapter last month.

Cory Williams, ICE Angels CEO, says this year (to August 31) has been a big step up for the two year old organisation. "We've had a lot more interest and we're really gaining some traction both from the investment perspective and in encouraging interest around the country."

ICE Angels has formed partnerships with fledgling angel networks in Wellington and Christchurch but Williams says that the industry is very much 'early early stage' compared with angel investment interests world-wide.

"The Angel scene in New Zealand is gaining momentum, with a national steering committee set to create a national voice for angel investment. It is clear that the ICE Angels lead the country in regard to experience with organised angel investment," says Mr Williams.

"There is", he says, "a challenge in finding great companies, so the ICE Angels have been looking for good companies and turning them into great. It's difficult finding people who are prepared to be active in working with companies and taking on the investment risk that is inherent with early stage companies."

Cory Williams says finding money itself is not the prime issue. "There is always enough money; it's more a question of getting the match right between investors who are prepared to take the risk and the entrepreneurs who have the capability to make money."

ICE Angel's $795,000 of investments to date has been in two companies associated with The ICEHOUSE (Nexus 6, and two rounds into Biomatters) and one external (Calcium).

However, Mr Williams points out that ICE Angels investment is available to the wider business community as evidenced by the nearly 50 deal applications that have come from external sources.

He says companies, particularly the early stage small businesses that traditionally attract angel funding, like and value the association with a group of angel investors. "Angel investing attracts people who want to allocate around 10% of their investment portfolio and who want to have fun investing in a range of high growth, high energy early stage companies."

They want a good return, but that's not the sole driver, he says. "Angels help companies and get alongside them in a governance and mentoring role. In a way it's a little like a parent /child relationship - often the faith and support is unconditional."

-ends-

More information:

Notes to editors: ICE Angels

· The ICE Angels is an angel investor network that was founded in Auckland by the ICEHOUSE.

· It is a collective of private investors who have banded together to increase their 'deal flow' (the number of investment opportunities they see).

· Potential deals must meet a strict criteria for investment to be considered by the club, and undergo a thorough due diligence process prior to investment.

· Members are experienced entrepreneurs and business people who take an active interest in the management of investee companies.

· ICE Angels is not a venture capital fund, but does have venture capitalists as affiliate members - TMT Ventures, Endeavour Capital, No 8 Ventures & KIWI.

Investments to date:

· Nexus 6

· Biomatters

· Calcium

KPI Targets

5/09/2005

Year to
31-08-04
Actual
2005 Target
2005
YTD

Investment
1 @ 220K (Biomatters)
5 @ $200k each
Total $1m
Nexus6 -$500k
Biomatters (2) - $30k & $195
Calcium - $70k
Total (4) $795

Presentations
6
15
12

Presentation Meetings
3
6
6

Deals Pre-screened
10
20
15

Applications
6
35
21

Enquiries
12
60
61

Membership
30
50
62

...Nine-tenths of wisdom is being wise in time"....Theodore Roosevelt

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