NZ Young Company Finance - Issue 6 - February 2009
NZ Young Company Finance - Issue 6 - February 2009
DEALS ON THE DECLINE
The number of young company private financing deals undertaken in New Zealand fell away significantly in 2008 with 26 deals completed compared to 46 in 2007, according to the Young Company Finance Private Finance Index.
While absolute dollar investment was not significantly affected during the year - in 2008, the 26 deals had a combined value of $22.9 million compared to 2007's 46 deals with a combined value of $24.2 - two clear trends have been seen.
Firstly, a greater proportion of 2008's deals were second round finance or later, with only $4m of new capital being introduced to companies during the year. This is a significant change from the 2007 year where nearly $16m was invested in new deals.
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