Angels seek new investments
Angel investors are still investing in New Zealand start-ups, pouring $23.1 million into new companies in the first half of the year and showing more appetite for new rather than follow on funds, as measured by the New Zealand Venture Investment Fund’s Young Company Finance Index.
That’s slightly down on the record $23.7 million in the first half of 2013 but shows that angel activity in the early part of the tech company pipeline is in good health, said NZVIF chief executive Franceska Banga, releasing the latest index update.
A trend this half year has been a shift back to new investment rather than follow-up money. Of the $23.1 million invested in the last six months, 53 per cent was follow-on investment and 47 per cent new compared to 80 per cent follow-on and 20 per cent new in the same period in 2013.
Angel Association chairman Marcel van den Assum said it was a little early to tell if it was a sustainable shift but could be a sign the market was maturing with investors saying ‘no’ to follow on investments when companies don’t meet milestones.
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