Sharechat Logo

Angel investors provide record funding for young companies

Monday 20th September 2010

Text too small?

New Zealand angel investors, punting on young companies springboarding to high growth, have put a record $31 million into 35 deals during the first half of 2010.

Cumulatively $160 million has been invested by angel investors, typically high net worth individuals, since 2006 when Young Company Finance begun its index.

“Angel investors are making new investments but also supporting existing investee companies as they grow,” said New Zealand Venture Investment Fund chief executive, Franceska Banga.

“As more companies are invested into, more companies are receiving follow-on investments, providing a snowball effect.”

She said there is now a considerable pipeline of young technology companies looking to grow following consistent and significant growth in the angel investment sector in the past few years.

“As these promising young angel-backed companies develop, they need new sources of growth capital,” Banga said.

“The challenge for New Zealand’s capital markets is to improve the availability of growth capital to keep building these companies.”

Of the $31.6 million invested by angels in the first half of the year, $13.4 million was into first round investments and $18.2 million comprised follow-on investments.

In terms of the stage of investment, $3.9 million was seed investment, $20.5 million was at the start-up stage, $4.8 million at the early expansion level, and $2.5 million at the expansion stage.

Deal flow for the year was maintained at the high level of last year. In 2009, 64 deals were completed. So far in 2010, 35 deals have been completed.

Since 2006, by region, 49% has been invested in Auckland, 17% in Wellington, 11% in Christchurch, 8% in Dunedin, 7% in Palmerston North, and 4% in Hamilton.

Software and services received 27 percent of the amount invested, followed by pharmaceuticals/life sciences technology (26%), hardware and equipment (13%), and food and beverage (11%).

Businesswire.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report