Introduction to angel investing

Angel investment in New Zealand

What is the business of angel investing?
The Business of Angel Investing in New Zealand: A Guide has been written by the New Zealand Venture Investment Fund (NZVIF) as a definitive guide to angel investing in New Zealand.

Why the business of angel investing?
Discussions with industry players have demonstrated that many angel investors without a background in investing in early stage companies (often referred to as angel investing) want to understand the fundamentals of how to make money from this activity; that is, the business of angel investing. The purpose of this Guide is to provide a resource for those interested in angel investing and who are keen to learn the basics in a simple how-to guide, developed by NZVIF with the assistance of experienced angels active in New Zealand. The goal is to educate and inform new and existing angel investors, increase the number and likelihood of successful angel investments within the New Zealand angel market, and accelerate the development of the New Zealand angel market.

Who is NZVIF?
NZVIF is a Crown Owned Company that invests in seed, start-up and early stage New Zealand businesses. Investment is always alongside matching private capital. NZVIF investment capital is provided to companies either indirectly through investments into private sector venture capital funds (the VIF Venture Capital Fund) or directly alongside angel investors (the NZVIF Seed Co-Investment Fund). NZVIF is also committed to developing and educating the early stage investment market through initiatives like The Business of Angel Investing in New Zealand: A Guide.

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Introduction to Angel Investing – Tom McKaskill

by Tom McKaskill 2009
Click here to download the full publication
Breakthrough Publications, 2009, Australia (279 pages, 1.1MB)

Angel investing involves active mentoring and coaching of an early stage management team towards a successful exit or additional funding, probably from a venture capital firm.

Many high net worth individuals are reluctant to invest in early stage entrepreneurial ventures because they are unsure of how to evaluate the investment or to manage their involvement. Even those that do undertake a limited number of investments are unsure how to best structure the deal or when to intervene to ensure their investment is protected. Additionally many wealthy individuals mistakenly believe that Angel Investing is beyond their means or outside their range of experience, but with the emergence of Angel Networks, Groups and Angel Funds, the majority of wealthy individuals can now participate in this class of investment.

Successful Angels know that investing in entrepreneurial ventures is more than just providing finance. There is involvement of the Angel in all aspects of the business. Successful Angel investing is active investing which requires the Angel to find the right investments to suit their personal knowledge, time and interests. Angel investors enjoy what they do but they also understand the risks involved. Those risks are substantially reduced with a systematic approach to the selection, management and harvesting of their investments.

The Introduction to Angel Investing book is designed to help high net worth individuals become successful Angel Investors, is a useful guide for those new to the Angel space.

It sets out a comprehensive and rigorous process which will help the Angel generate deal flow, evaluate investment proposals and manage the investment and subsequent harvest. The book also provides a useful guide to managing operational risks in the venture.

The book details:

  • The role that Angels play in early stage ventures
  • How they should generate a deal flow
  • The manner in which they should evaluate potential investments
  • How Angel Funds and Angel Networks work
  • The contribution Angels should make to their investee firms
  • How they should structure the investment deal
  • How to develop a viable exit strategy
  • The role of professional advisors
  • Guidelines for operations risk management

An Introduction to Angel Investing shows how significant wealth can be achieved by private individuals through investments in high growth early stage entrepreneurial ventures.

State of Entrepreneurial Finance: VCs, Angels, Super Angels, and the Creative Other

by John May 2015
Click here to download the presentation