Angel investing is by nature an individual pursuit. Angel networks, groups and funds are private entities. As a consequence, it is difficult to generate empirical investment data.
However, the establishment of the Seed Co-investment Fund (SCIF) in 2006, designed to accelerate the sector’s development, has provided data about deals in which match-funding has been committed. The results show New Zealand’s industry is maturing.
In addition, since 2008 when the Angel Association of New Zealand was founded, the number of formal groups seeking membership has risen to 15. Networks, groups, funds and most recently equity crowd funder’s, incubators and accelerators have also joined New Zealand’s leading early stage investment industry association.
Nationally the amount of dollars invested is growing. Furthermore, with an increasing number of people looking out for and supporting the development of highly scalable early stage businesses, the deal flow of opportunities suited to angels is also growing.
What drives angel investment?
Early-stage opportunities can be exciting. Companies which are capable of moving quickly into offshore markets can bring exceptional returns. Business angels are in great position to see them before anyone else.
Another driver is the support, camaraderie and opportunities delivered by being part of a network. This is due to the exposure investors gain to companies in exciting sectors they may not otherwise be able to access.
Finally, business angels are driven by the prospect of significant monetary return. However, this sits alongside anecdotal evidence which suggests this driver is equal to the desire to share their knowledge. They look forward to helping young founders and their companies grow. In addition to their money they invest time, mentoring and coaching management teams to help build local and national economies.
For more information about the industry click here. Discover New Zealand’s wide network of angels and find a local network here.