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Offshore capital and Government support startup growth

30 October 2019

Media Release

Offshore capital and Government support driving startup growth

PwC New Zealand and the Angel Association of New Zealand’s latest report explores two factors having a positive impact on the growth of New Zealand’s startups – increasing offshore capital and new Government funding.

The latest Young Company Finance Index data illustrates the role offshore funding is playing in New Zealand startups:

• The proportion of offshore funding in local startups has grown from 0% in 2006 to 23% in 2018

• In 2019, the average size of funding rounds including offshore capital has been over $4 million compared to under $600,000 for rounds without offshore capital

• The sector attracting the most offshore funding is Software as a Service with startups in this space receiving 48% of all offshore investment.

An increase in the support being provided by Government is also having a positive influence on the local startup ecosystem. The $300 million funds programme announced in May will give startups looking for Series A backing to scale their businesses more opportunities to grow. At the beginning of the funding journey, KiwiNet data from the first half of 2019 also reveals increasing activity with $1.14m of pre-seed grant funding provided to early stage startups.

PwC New Zealand Partner Anand Reddy says, “The Young Company Finance Index data highlights the important role offshore funding has in our ecosystem. This, along with the increasing commitment the Government is showing towards the sector makes it an exciting time to be part of the startup community in New Zealand.”

John O’Hara Angel Association Chair of New Zealand comments, “There has never been a better time in New Zealand to be a founder seeking funding or an investor looking to invest. This edition of Startup reveals that growth remains strong and we are on track for another year of well over $100 million in new funding for early stage companies in 2019. I remember a time when the only access to capital was through bank debt often secured against the family home or other property - this is a huge sea change in just a generation.”

This analysis forms the basis of the latest edition of Startup Investment magazine, a bi-annual publication from PwC New Zealand and the Angel Association. More information can be found at


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