Invest through AngelEquity. The New Zealand crowdfunding platform with access to deals prepared by formal angel networks.
We offer wholesale investors (as defined by the FMCA 2013) access to deals already backed by angels who are members of the AANZ New Zealand’s formal angel industry association.
Business angels are experienced in making personal investments early in the lifecycle of businesses. Therefore, they are very careful about their investments. This brings significant benefits to other investors.
To increase the likelihood of returns on early-stage investments, investors need to build a portfolio. AngelEquity has been created in the belief wholesale investors interested in this high-risk asset class should be able to invest, and build their portfolio, by accessing sophisticated opportunities they can be sure have been prepared by experienced people.
Invest with confidence in deals where:
- Experienced business angels have screened and assessed all deals.
- Due diligence is undertaken by a team of business angels who have an interest or expertise in the industry sector and an understanding of the market and opportunity.
- The company’s valuation is validated. It is negotiated based on the expert insights of angels. They apply their knowledge regarding the likely growth path of the company.
- Investor protection terms are negotiated. These may include pre-emption rights, voting rights, tag-along and drag-along rights.
- A lead angel is appointed. The lead maximises the expertise of the business angels involved and provides on-going support to investee companies.
- Angels are investing and in many instances, the New Zealand Venture Investment Fund is co-investing through SCIF (Seed Co-Investment Fund).
- Wholesale investors can invest on the same terms.
Benefits of AngelEquity deals:
Rigorous due diligence
Wealthy individuals, who have chosen to become business angels can invest considerable amounts in early stage companies. They have been successful business people themselves so can apply significant expertise to the research and analyse of a company; its team, market, opportunity, competition, and other business fundamentals.
Negotiating the valuation
Investing at the appropriate valuation is crucial to generating a good return for investors, and for entrepreneurs. Valuation is critical to the entrepreneur’s ability to grow the company – it has an effect on the ability to raise later rounds of capital from other investors and the way a company, and its team is viewed by those investors. Entrepreneurs often value their companies much higher than angels. Sometimes they unaware of the many complexities of scale and capital required in later rounds of financing.
Supporting growth post-investment
The company’s growth path can be affected dramatically by having successful business angels as investors. Angels add their experience, domain knowledge and often have an extensive network which they can call on to help a company grow. On AngelEquity, you’ll find regular reports on investee companies.
Build a diversified early-stage investment portfolio on good terms
Angels have learned one of the keys to investing success is to build a portfolio of early-stage investments with the right terms. On AngelEquity, it’s easy to create a diversified portfolio of deals which have the backing of angels with considerable expertise who ensure all investors receive the same protective terms. Whether you are looking to invest directly in individual deals or through an angel fund AngelEquity’s platform provides the opportunity.
Angels have early-stage growth expertise
In the largest study of angel investment returns ever conducted, authored by Robert Wiltbank of The Angel Resource Institute at Willamette University (ARI) results showed that angel investors achieved an average 22% internal rate of return on their investments. It doesn’t mean that they never experience failures. However, the overall return from building a diverse portfolio is positive.
Now, if you qualify as a wholesale investor, you can invest through AngelEquity in the same deals angels do.