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


NZ angel investors bet on few new investments in first half

NZ angel investors bet on fewer new investments in first half as total funding falls

By Paul McBeth

Oct. 12 (BusinessDesk) - New Zealand angel investors scaled back their support for new investments in the first half of the year, instead preferring to top up funds to firms already in their portfolios, as the amount of money invested fell 20 percent from a year earlier.

Angel funds invested $20.6 million in the six months ended June 30 across 53 deals, compared to $25.9 million across 61 deals a year earlier, according to the Young Company Finance index compiled by the New Zealand Venture Investment Fund and Angel Association. Of that, about 77 percent, or $15.8 million, was follow-up investment, and the remaining 23 percent, or $4.8 million was new investment. That compares with a 53/44 split a year earlier.

"Angels are coming off a previous year which saw a lot of new investment," Angels Association chair Marcel van den Assum said in a statement. "When economic conditions tighten, it is natural that investors will look to continue to support those companies in their portfolio which are doing well."

Earlier this year, visiting Silicon Valley venture capitalist Bill Reichert of Garage Technology Ventures said New Zealand's angel investment community appeared to be vibrant, but could benefit from greater pooling of its resources, whereas the local VC community was still recovering from the global financial crisis in 2008.

An increased proportion of deals in the period were syndicated between different angel groups at 88 percent, compared to 77 percent a year earlier.

The index showed $8.8 million of funds invested by angels in the half was in software and service companies, followed by $3.4 million in pharmaceuticals and biotechnology, $2.7 million in healthcare, $2 million in food and beverage, and $1.1 million in technology.

In terms of the stage of investment, $9 million was in seed investment, down from $13.4 million a year earlier, $11.1 million was in the start-up stage compared to $10.4 million in 2014, and $500,000 was at early expansion or expansion stage, down from $2.1 million.

NZVIF investment director Chris Twiss said the second half of 2015 will provide a greater steer on how wider economic events are weighing on early stage investing by angels, and the annual investment was likely to be below the $55.9 million in 2014.

"That said, there continues to be strong interest in good New Zealand technology, especially where there is a global market opportunity, and the role of risk capital stimulating and supporting start-up companies is even more important in this climate," he said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


RNZ: Porirua Most Expensive Region To Rent, According To Trade Me

A rental website shows this town is now New Zealand's most expensive region to rent a house, ahead of Wellington and Auckland cities. More>>


Stats NZ: Nearly 1,000 More Big Businesses Now Than Two Decades Ago – Media Release

There are now 2,690 big businesses in New Zealand employing more than 100 staff – nearly 1,000 or 58 percent more than 20 years ago, Stats NZ said today. Over the 20 years to February 2020, the total number of enterprises in New Zealand increased ... More>>


RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>


Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


CERT NZ: Malicious Computer Virus Targeting New Zealanders

CERT NZ, the government agency which supports organisations and individuals affected by cyber security incidents, says a recent surge of increasingly sophisticated malware attacks is affecting everyday New Zealanders as well as large organisations. The ... More>>


Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>