Five important things about raising tech company capital in NZ
September 4, 2013
From the outside, raising capital for technology start-ups seems harder than elsewhere in the world. In truth, it isn’t more difficult, just different.
This week’s Moxie Sessions on capital for technology companies revealed five key points. Few of these are widely discussed at the moment. Let’s change that:
• While the rest of the world turns to formal sources of capital investment and less formal sources such as crowd-funding, New Zealand’s start-ups typically use informal funding sources. This has positive and negative implications.
• New Zealand Angel investment is immature by international standards. Local angels typically have unrealistic expectations and often ask too much of entrepreneurs.
• Despite the common perception, there is no shortage of investment capital in New Zealand.
• The most appropriate role model for New Zealand’s start-up technology sector is not Silicon Valley or Australia but Israel.
• Sophisticated investors look for evidence a business is gaining traction, particularly in overseas markets. They also want to see clear proof the idea behind the business works in the market.
That’s the headline material. You’ll find a fuller report from Vaughn Davis later this month at the NBR (here’s a link to his last Moxie report) and there will be a podcast at the Moxie Sessions site.