Dave Moskovitz named NZ Arch Angel 2018

One of New Zealand’s true champions of kiwi start-ups and angel investment, Dave Moskovitz, was awarded the Angel Association New Zealand’s (AANZ) Arch Angel Award at the 11th Anniversary NZ Angel Summit in Blenheim.

The Arch Angel Award is the highest honour in New Zealand’s angel investment community, and recognises individuals who reflect the qualities of the best angel investors and who are champions for the endeavour.

The award recognises the significant amount of time and money angels contribute to startups and early-stage companies – and specifically to their founders and teams – to help them reach their potential while also recognising angels who make a significant difference to New Zealand’s start-up ecosystem. The recipient is chosen by the previous years’ winners.

Dave has been investing in early-stage companies for a decade and been an investor director for a number of the ventures he has backed including ShowGizmo, The Appreciation Engine and Jaipuna. Most notably he was at the helm of peer-review publishing platform, Publons as Chair when that venture exited to UK-based Clarivate Analytics last year.

Dave has held governance roles with Wellington-based AngelHQ and was one of the founding fathers of New Zealand Start-up Weekends. He has mentored for 9 accelerator programmes helping dozens of ventures to secure funding and grow their businesses. Dave is an active member of InternetNZ, a member of the council of Open Polytech and was recently appointed to the Ministerial Advisory Group for Digital Economy and Digital Inclusion. He is also New Zealand’s representative to the Global Business Angel Network.

Former Arch Angel winner, Andy Hamilton, says one of the hallmarks of Dave’s work has been the importance he places on the role of empathy in business success.

“Dave takes a very genuine interest in supporting not just the success of the founders he backs, but also their wellbeing,” he said, noting that being a founder can be a very personally challenging role.

2012 winner, Movac’s Phil McCaw, who has worked with Dave over the years in the Wellington start-up and early stage investment scene, said Dave’s contribution to angel investment and start-ups in New Zealand is significant.

“Dave has freely given up countless weekends and evenings to work with people from all kinds of backgrounds who want to create new businesses. Making a difference and leaving the world better than he found it are integral components of Dave’s purpose. In investing in a number of these start-ups, he follows through very tangibly to deliver on that purpose.”

Speaking earlier in the year to Simon Morton on Radio New Zealand, Dave spoke with deep and personal insight about how successful angels and founders recycle skills and capital generating a virtuous cycle of further start-ups and cutting-edge roles in disruptive industries. He also spoke enthusiastically about the role start-up methodology could play improving the delivery of government services.

Dave received his award at the 11th Anniversary NZ Angel Summit, held at Marlborough Vintners in Blenheim and attended by 150 delegates. The annual event provides a hub for angels to learn and network, and is recognised as one of the world’s top angel events.

American born, Dave came to New Zealand over 25 years ago. He attended the University of California, Berkeley where he majored in computer science. He is one of three migrants to win the Arch Angel Award.

Former Arch Angel winners include The Warehouse founder and long-time angel investor Stephen Tindall; Andy Hamilton, chief executive of The Icehouse and member of IceAngels; US super angel Bill Payne; veteran angel investor Dr Ray Thomson; prolific AngelHQ member, Trevor Dickinson, former AANZ Chair, Marcel van den Assum and ardent angel investor, Debra Hall.

Please follow and like us:

On track for another record year

First half year results show angels are investing at rates on a par with previous years. The upward trajectory continues. It’s likely the formal part of the market will hit $100m into high growth start-ups this year.

Reporting on the activity of its members tracked by the NZ Venture Investment Fund, Angel Association Chair John O’Hara said $30.8m dollars was invested in 46 deals in the first six months of the year compared to $20.2m into 29 deals in the same period last year.

More detail and deeper insights can be found at www.pwc.co.nz/startupmagazine in the second edition of Startup Investment New Zealand; a collaboration between Angel Assn and PwC.

Mr O’Hara noted there is always a substantial uplift in activity in the second half of the year, in part inspired by two of the country’s larger angel networks, Ice Angels and AngelHQ, holding their annual venture showcases in September.

“This year Ice Angels’ showcase attracted 1000 guests and that level of enthusiasm has been reflected in capital commitments to the ventures presenting. AngelHQ’s showcase attendance numbers were also up,” said Mr O’Hara.

“We are seeing increasing valuations and amounts raised, and in many cases, start-ups are now appearing to be fully valued. While this is positive it comes with some challenges,” said Mr O’Hara.

“Start-ups that are too well funded can lose their edge and correspondingly high valuations put pressure on founders to deliver the requisite valuation uplift to ensure the next funding round is successful,” he noted.

These sorts of issues were discussed at the Angel Association’s first ever event for founders and investor-directors held the day before the industry’s annual summit in Blenheim on Wednesday 31 October 2018. Called “The Runway”, the day-long event brought together over 35 founders of high growth ventures and the angels who have backed them. As well as building a cohort of like-minded founders who support each other as their ventures scale, the initiative began to build tighter alignment and awareness of what it takes to scale an angel backed company.

Please follow and like us:

Key metrics for assessing an angel deal

This is a terrific article setting out key metrics to ask about when assessing an angel deal from David Jackson, a Committee Member of Sydney Angels Inc. Some great tips on how to be an effective angel investor are also embedded.

“Let’s say you have a brilliant idea for a startup.

You know your Hats-for-Cats app is going to take the world by storm. And while you may be half-starved, you have a whiteboard and a T-shirt with your logo on it, and the energy, guts, and grim determination to make it happen.

But the funds scraped together from friends, family, and savings for market research and a demo are now completely exhausted. The credit cards are completely maxed out. You’ve realised it may be time to find an angel investor who can lay enough runway for a developer and the go-live phase. The good news is: angels want to give you money. That’s our job.”

Read more

Please follow and like us:

International angel experts descend on Summit #AANZ18

The big event in the calendar for the Angel Association New Zealand is the annual Angel Summit.

This year our Summit focuses on the power of diversity and how it delivers better outcomes.

The world has changed significantly since we began over ten years ago. This year we acknowledge the changes and discuss how we can adapt, focusing on amping up the power of angel investment through diversity and inclusion to deliver higher value outcomes. We will be welcoming aligned VCs from NZ, Australia and Singapore to join the conversation and discuss questions like;

Why and how does a more feminine approach, both as founders and investors, add value?
What values do different ethnicities bring to angel backed ventures to increase the prospect of success?
Why is it important we include millennials in our ventures?

Joining our discussion will be;

Randy Komisar
Last year Randy Komisar, managing partner from Kleiner Perkins attended the summit with support from NZTE and Spark Ventures. Randy’s fireside chat at the end of the summit was one of the top rated presentations. As a direct result of his visit Randy was inspired to write “Straight Talk for Startups – 100 rules for beating the odds”. The book is currently ranked no.1 on Kindle’s Business Technology section. His return to NZ is intended to amplify the connections he made last year and he will play a lead role in The Runway event for founders and investor directors and spend a couple of days in Wellington.

Jeffrey Paine
Jeffrey Paine is a founding partner of Golden Gate Ventures based in Singapore. Since it’s inception in 2011 Golden Gate have invested in 30 companies across Asia. GoldenGate consider any ventures expanding into Asia and will invest between $US1-10m in early stage and series A rounds.

Wendee Wolfson
Wendee Wolfson co-founded one of the first angel networks in Washington DC, New Vantage Group with ACA Chair Emeritus, John May. She has chaired the US Angel Capital Association international exchange for the last seven years. Wendee is currently working with the Next Wave Impact Fund and has worked with the predecessor fund, Rising Tide, to educate and engage more women in early stage investment and will spend time in Auckland during her visit.

Marisa Warren
Marisa Warren is from Elevacao which has gained profile and traction in Australia, San Francisco and New York helping woman founders to scale and attract investment. Marisa has deep experience in corporate M&A and extensive networks.

Dr Sean Simpson
Dr Sean Simpson is one of the co-founders and current Chief Science Officer for Lanzatech which is ‘revolutionising the way the world thinks about carbon waste’. Sean has a tremendous depth of experience and belief in New Zealanders’ ability to change the world and will talk about lessons learned along the way as he led a team taking Lanzatech to the world. Dr. Simpson served as Leader of the Biofuels initiative at AgriGenesis BioSciences Ltd.

John Henderson
John is a Partner, Head of Venture and Business Development from Airtree Ventures based in Sydney. Airtree has made over 50 investments, including a number of NZ companies and had over a dozen exits.

We will also be privy to valuable input from a wealth of local early-stage investment experts including; the experience and insight of Marcel van den Assum, former Chair of the Angel Association and currently chairing a number of high growth ventures such as Wipster and Merlot Aero; the marketing chops of Vic Crone, CEO of Callaghan Innovation; the investment strategy of Richard Dellabarca, CEO of NZ Venture Investment Fund; and insights about fast track of growth from Janine Manning, Chair of Crimson Consulting, one of New Zealand’s most highly valued angel backed ventures.

This 11th annual Angel Summit will deliver a unique opportunity to learn how to invest to create a bright future for New Zealand, its talented entrepreneurs and drive returns so we can re-invest.

What will I come away from the summit with?
Friends and super relevant contacts, pithy, practical insights on how to be an angel with more impact, a great little goodie bag, and as is customary when you descend from a summit… arms full of inspiration!!

Check out the draft programme here.

Please follow and like us:

Angel investment rises 26% to reach record level

Startups in New Zealand received an unprecedented level of funding last year, with $86 million flowing into early-stage businesses across the country. That’s according to Startup Investment NZ, published by PwC New Zealand, the Angel Association of New Zealand (AANZ) and the New Zealand Venture Investment Fund (NZVIF).

“It’s exciting to see such a large number of deals coming through to support early-stage companies. We’re seeing investment levels that are almost three times what we saw just five years ago” said Anand Reddy, Partner at PwC New Zealand.

John O’Hara, AANZ Chair, endorsed this sentiment noting that membership of angel networks continues to grow with a new network established in Marlborough last year and a budding network getting started in the Hawkes Bay.

Established networks like Ice Angels in Auckland, AngelHQ in Wellington and Enterprise Angels in Tauranga are also experiencing growing memberships.

Driving the growth in investment dollars is an increasing number of larger deals in 2017, compared to the year before. The number of deals in 2017 held steady at 111 – one lower than the 12 months previous – the total amount invested has risen by $18 million, a 26% increase.

Offering some insight on the larger number of dollars being invested in a similar number of deals, John O’Hara suggested it reflected a maturing ecosystem.

“A number of the ventures angels have backed are now looking for larger capital injections to fuel their growth. With a thin VC industry, it’s not surprising we are seeing larger deal sizes.

John also offered a word of caution to investors and founders.

“The market’s a little frothy right now. We’re seeing some strong valuations. Entrepreneurs have to be sure they’re not setting the bar too high with their forecast results. If they fail to meet these, it’ll make it make it harder for them to get the next round of funding.

“And investors will be similarly impacted. Flat and down rounds do not impact well on portfolio return prospects.”

Click here to find out more about how the startup sector is evolving, and where it’s heading next.

Click here to dive into the data about this asset class.

Please follow and like us:

The network effect: NZ angel networks drive funding

Of the $86 million invested into young companies in 2017, over half ($49 million) came from angel investment networks, rather than individual funds or institutional investment.

“The strength of our angel investment networks in New Zealand is growing every day, which helps to explain why they’re responsible for a growing share of overall funding” says AANZ Chair John O’Hara.

“They’re responsible for over double the funding that’s coming through the next most-popular channel of angel funds.”

Raising funds from angel networks can take a little longer than other sources of early stage funding (such as mico-VCs and high networth individuals) given that sometimes over a dozen individual investors are collaborating to complete DD and gather the investment. Angel networks also tend to be run with a large component of voluntary input so founders and lead investors need to be committed project managers.

John notes that not only do networks tend to bring a larger pool of connections and expertise than single source funding options, they bring deeper reserves of connections for follow on funding.

“Angels are inveterate travellers and networkers and have connections in markets across the world which can be tapped for sales channels, in-market insights as well as follow on funding recommendations,” said John.

“Nothing beats getting on a plane with a line-up of carefully targeted meetings. New Zealand founders and investor directors need to spend more time in-market and be preparing for the founder to be based there,” John added.

He concluded by noting that lining up an in-market Board member was also an important component of scaling into offshore markets.

Click here to find out more about how the startup sector is evolving, and where it’s heading next.

Click here to dive into the data about this asset class.

Please follow and like us:

Software the top sector for NZ angel investors

More than half the investment made in early stage companies in New Zealand last year was in the software and services space (53.8%), followed by 17% in technology hardware and equipment.

“Technology is increasingly the engine of growth for all companies, regardless of size” explains PWC’s Anand Reddy.

“It’s no surprise that it’s these areas where the most activity is happening and where angel and early-stage investors are putting their energy. This reflects global trends too. Data generated by Crunchbase notes that the software and services remains the dominant sector for investment.”

Speaking personally, John O’Hara said that his own portfolio leant towards software generated ventures.

“I am particularly proud of Ask Nicely, which produces software for NPS (net promoter score) collection and analysis. This company has already generated tangible returns for a number of the early angel investors. The company is now scaling into the US, with the founder moving to Portland, Oregon in the last couple of months.

“New Zealanders have a knack for practical problem solution and we are increasingly seeing them turn this knack into compelling business opportunities,” said O’Hara.

Click here to find out more about how the startup sector is evolving, and where it’s heading next.

Click here to dive into the data about this asset class.

Please follow and like us:

Waiheke Angel Summit Reflections

The best things about this year’s angel summit…

The annual summit always reinforces why angel investment is my thing.

Angel investors are unapologetically optimistic, creative, generous and ambitious. And our community cares… to their bone marrow, those involved in early stage investment care! These people are ambitious for the success of the founders and ventures they are working with and they are genuinely ambitious for New Zealand.

Kiwi early stage investors want to see the incredibly cool stuff we do in New Zealand get out to the world, they want to help create fabulous jobs in New Zealand, they want to contribute to raising our living standards and to the creation of role models for our budding entrepreneurs.

I came away super-chuffed about the real pride in our New Zealand-ness which imbued this year’s event. It really feels like we are at the tipping point of cracking serious success. New Zealand innovators and founders are absolutely worth backing.

And guess what? At the same time as we begin to acknowledge the real value of being kiwi, we get a bunch of proof points that kiwi founders and innovation really does deliver. The ventures angel investors have been helping to scale are becoming more and more appealing to others. This year Apple bought PowerbyProxi, US-based Clarivate bought Publons and UK-based Oxford Metrics bought IMeasureU.

Key themes at the summit which will help us continue to amp up the appeal and success of angel backed companies include:
• genuinely put the founder first – be empathetic, be accessible and be truly aligned;
• start with the end in mind and work unrelentingly towards it – together;
• know what it’s going to take to achieve liquidity – deeply understand your capital strategy and potential acquirers;
• actively manage your portfolio; and
• at all times focus on adding value.

In a future post I want to dig deeper into how angels best support founders to deliver the dreams they have to change the world. But to augment the take-outs from this year’s event I’ve extracted couple of quotes and insights from some of our keynote speakers.

Ian Taylor – Animation Research Limited
• Bugger the boxing, pour the concrete anyway
• Well it wasn’t a failure… it just didn’t work

Deb Hall – New Zealand ‘angeling’
• By the end of 2006, NZVIF recorded 55 deals and $30m of investment. By the end of 2016 nearly 1000 deals have been done, with $484m invested in nearly 200 companies.
• Over half the angel community spend more than a day week mentoring and supporting founders.

Phil McCaw and Andy Hamilton – what’s next
• Phil – “I see a bright future. As a country and a world we are going through a process of massive social change. The capitalist model is going to reshape and be reborn”
• Andy – “New Zealand will be way better off, the more angels we have.”

Bruno Bordignon – term sheets
• Context is everything. Always ask ‘how does this term or will this term apply to me/the stage of my venture/the sector it’s in/the growth plan I have/the liquidity plan I have.

Justin Milano – exponential mindsets and the triangle of founder expansion
• Shift anxiety and the need to control uncontrollable outcomes to selfless service and generosity. How am I being asked to serve today? There is always something you can do to add value.
• Shift from beating yourself up to a growth mind-set. Be kind to yourself. It’s all about learning, growing and embracing challenges.
• Shift from a head space of “I am my company” [or investment] and free yourself from self- importance. Acknowledge you are not your company [or investment] and instead accept that “this mission is bigger than me” and adopt a sense of humility.

Ron Weissman – the importance of capital strategy
• Don’t ignore the boring stuff like capital models and capital risks. These are the key to success.
• Key capital risks include: capital inefficiency, no follow-on investors, misaligned investors, larger liquidation preference shares, management carve outs.
• Only 15% of angel backed companies achieve an exit of greater than $US50m.

Dan Bernstein – building exit value
• Mistakes made when ventures are being bought: having only one buyer, there is internal company conflict, poor due diligence preparation, poor qualification and management of buyers, ego, greed and arrogance, maximising profit and minimising growth.

Richard Dellabarca – managing your portfolio for returns
• A lack of exits is unsustainable for the ecosystem. Capital needs to be recycled.
• SCIF2.0 will focus on returns, opportunities with a global thesis, reserving capital for those getting traction, up to $1.5m for top performers (vs $500k under SCIF1.0).
• Since 1 July 2017, SCIF2.0 has approved 59% of deals presented, with a higher approval rate for follow on deals and declines being notified within 2 weeks.

Sam Stubbs – more capital is coming
• Kiwisaver is a $42bn saving pool which will grow to $200bn by 2030.
• Kiwisaver providers want to invest in early stage but are not currently being provided with the right products and mechanisms to be able to do so.
• Bigger follow-on cheques are coming.

Arama Kukutai – corporate venture capital
• Agtech activity has more than doubled by value and volume since 2014.
• US venture capital accounts for 47% of world-wide capital invested in agtech startups.
• In the agtech sector, corporate venturing and collaboration with VCs is becoming increasingly common and more sophisticated to generate win/win outcomes.

Randy Komisar – why do this? investment motivations and M.O
• Is this the deal, are these founders and is this cause… worth failing for?
• Investing in startups is about people and value creation, not about buying low and selling high.
• Don’t emulate any other place on the planet, do your thing. Protect and promote what you have as New Zealanders.
• If you can plot success for a company, it’s probably wrong or not worth doing.
• Fighting for crumbs on the table is no way to get cake – a reference to niggling over terms.

Please follow and like us:

Treatment of women & diversity in angel investment

Shabby, unkind and unprofessional treatment of women by men (and sometimes by other women) whether in venture capital or more broadly is unacceptable. While women have had the rough end of the stick for hundreds of years, being treated fairly and kindly should not be gender specific.

It is not about being a woman or a man or even religion or ethnicity. It’s about the values we choose to live by and which values give us a greater crack at success – however we define success!

How we treat each other and the importance of diversity is about a set of values and two values in particular – kindness and respect.

Supporting and scaling start-ups is no walk in the park. It’s often challenging and down right terrifying – for founders and investors. The fear of failure and rejection is always skulking in the shadows of fund raising, closing a sales deal and hiring senior employees. It’s anxiety inducing.

More kindness and respect would not go amiss. The AANZ believes both are key components of success, particularly when it comes to successfully scaling high growth startups.

We need to acknowledge that tough conversations are often necessary in our world. These may feel unkind but the pain can be minimised if respect and empathy – without bias – are at the heart of these conversations too.

Values complimenting kindness also support the importance of diversity. Kindness requires open-mindedness, curiosity and exploring different points of view. Successful founders live these values and these values are at the heart of the informed pivot and the ability to create and build value.

Kindness must underpin ensuring there is diversity in our deal flow, at our events and in our governance. Diversity mustn’t be about tokenism or ticking a box. Delivering diversity is about trying and looking harder to ensure it exists. It’s about valuing people to create value. We should select women (or Maori or Chinese or Buddhist) founders, speakers and board members based on their ability to shine and help others to shine. To do anything other than this is unkind – to everyone, and especially to the ‘box tickee’.

The AANZ Code of Conduct can be found here. We have added two clauses to the behaviours we expect. They are to be:
– Kind and respectful, and
– Supportive of diversity

As an industry we take responsibility, individually and collectively, for reflecting the behaviours set out in the Code of Conduct. We will talk quietly to those we are worried might not be reflecting these. We are not advocates of naming and shaming. That’s not kind or respectful.

The AANZ Constitution, however, makes it clear that our members must be “of good standing in the angel investment community” and there is provision for members to be expelled when this is no longer the case. The profound potential for common good inherent in angel investment is squandered when the self-interest reflected in unkindness is prioritised.

We all have circles of inspiration and impact – we must be the change we want to see – it’s powerful stuff.

Onwards…

Suse Reynolds
Executive Director

“Constant kindness can accomplish much. As the sun makes ice melt, kindness causes misunderstanding, mistrust, and hostility to evaporate.” – Albert Schweitzer

Please follow and like us:

Dave Moskovitz – Publons angel exit

Like so many in the startup and early stage investment community, the AANZ is delighted to congratulate the Publons founders and investors on the company’s recent acquisition by Clarivate. This outcome is an inspirational proof point that those sometimes elusive returns are actually achievable. Publons Chair and AngelHQ member, Dave Moskovitz writes about building strategic value and all those who were part of supporting the Publons team here.

Read more

 

 

Please follow and like us:

NZ Angel Values and Expectations

People do business with people. This is a universal truth, but in angel and early stage investment, the people side is writ large.

Angels and founders share a hunger for success and making a difference. It is this trait that aligns us so tightly.

There are a number of other values that underpin an angel investor’s effectiveness. A year or two back it seemed a good idea to explicitly set out these values and how we expect each other to behave, so the Angel Association agreed a Code of Conduct.

It sets out the following values as being important to us:

  • To be passionately ambitious for our ventures,
  • To be collaborative and collegial, and
  • To act with integrity and honesty.

Growing a successful business is hard work. Without passion and ambition, the knock-backs and grind of growing a business would quickly overwhelm most us. Angels share other traits with founders that are critical to success; unremitting optimism and creativity. The ability to positively and constructively address problems is powerful stuff.

Growing a successful business is never done alone. Generosity of spirit is one of the most inspirational aspects of working in angel investment. Angels bring value which goes way beyond their ability to write a cheque. Our experience, networks and expertise are the real rocket fuel. And what’s more, when a founder receives money from an investor in the formal NZ angel community, that investor is bringing over 600 people who share a generosity of spirit and values of collaboration and collegiality.

Another key component of success in the angel world is honesty and integrity. We have made it clear that communicating quickly and clearly is vital. We put great store on ‘doing what you say you are going to do’. When we commit to invest or offer to make an introduction, you should expect we will do it. If we are required to sign a document, you should expect it to be done quickly. Of course this isn’t always possible. We all know “life” happens, but you should expect that if something does get in the way of our doing what we said we would, we will communicate.

We also expect professionalism. Dealing professionally with each other sets the standard we expect of ourselves and our ventures as they grow into world-beating enterprises. Time and energy can be scarce resources in this setting. Sometimes this makes it challenging to operate at the levels of professionalism we are used to in other parts of our lives, but we strive for it nevertheless. Angel investors are also by definition actively involved in the business and with the founder. This level of familiarity also requires us to be sensitive to the need for professionalism.

These principles serve as the foundation for our dealings with each other and are the standards others working with us, such as founders and professional service providers, should expect.

What does this look like in practice?

If you are seeking angel investment should know that our members are looking for a credible entrepreneur with aspirations to grow an internationally competitive business with a well-defined product, customer and market. You should expect professional, prompt, objective and constructive guidance from our members, whether or not you ultimately secure capital.

Ends

Suze Reynolds

Please follow and like us:

Mahuki – bringing innovation to the global GLAM sector

Te Papa launched its first acceleration programme, Mahuki, in August. The programme is now nearing the half way mark.

There are ten start-up teams focused on innovating the GLAM sector (Galleries, Libraries, Archives and Museums). It is an in-residence programme and the Mahuki hub is located within Te Papa. The teams are working closely with museum experts, museum visitors and other cultural institutions to validate their ideas and build sustainable global businesses.

Given the size of the New Zealand market and our distance from bigger economies, Mahuki aims to take a ‘global from day one’ approach. To explore market opportunities, Mahuki will take these teams on a two week trip to the US towards the end of the programme.

The GLAM sector represents prestigious customers and large markets (it represents 4.3% of GDP in the US – larger than the construction industry). There are more museums in the world than MacDonald’s and Starbucks combined. There are in fact an estimated 75,000 of them, with 35,000 located in the US.  And while numbers of museums are still modest in China, that market has developed rapidly with a new museum opening every day.

The cultural sector is ripe for transformation – but entrepreneurs don’t necessarily know how to access the sector, how to best meet its needs or even recognise it’s potential.  At the same time, the experience economy is booming. However, no matter how large or attractive a market is – this means nothing if you don’t know how to access it.

The Mahuki programme has been designed to build the capability of businesses to deliver effectively to this valuable sector. Some of the key innovation trends and opportunities being seen in the sector include things such as augmented and virtual reality, gamification, location based services, mobile and BYOD, natural user interfaces, personalised goods and services, and wearable technology.

Mahuki can be translated as “perceptive” and it relates to the “wellspring of inspiration”. The Mahuki.org website provides more details about the programme, and you can get a small taste of the ten teams here –  http://www.mahuki.org/about/participants

Te Papa will host a Mahuki showcase event on Monday 5 December and an invitation will circulate Angel groups soon.”

 

 

 

Please follow and like us:

Amplifying NZ’s kotahitanga – working together for our people

One of THE best days I’ve had at work this year was the one I spent with fellow judges, Robin Hapi and Ian Taylor, talking to the finalists in the inaugural Maori Economy category of the HiTech Awards.

Without exception these finalists were not only great businesses – spanning startups to mature enterprises – they were also being run by talented, wonderful people.

What excited me though was how vividly clear it was that the values under pinning these businesses were shared by New Zealand’s angel investors.

As I said in my last post, we know angel investors join our networks for the following reasons:

  • To lift New Zealand higher – economically and socially;
  • To be actually involved in doing this – by contributing money, expertise and connections;
  • For the cool company – to be involved with like-minded, positive people; and
  • For the rich rewards – of course they hope for a financial return but the “psychic return” of doing good and contributing to lifting NZ higher is also a key reason why people become angels.

These values align with key values in Maori business such as:

  • Puawaitanga – the best possible return is sought on integrated goals, including but not just financial outcomes;
  • Kotahitanga – unity and a shared sense of belonging to work together for the benefit of your people;
  • Whanaungatanga – acknowledges the importance of networks and relationships, of developing, managing and sustaining relationships; and
  • Kaitiakitanga – which is about guardianship of natural resources but also extends to sustainable enterprise and taking care of assets as kaitiaki or guardians, the owners and trustees of an enterprise are responsible for protecting (and/or growing) resources for future generations.

The call for more Maori engagement in our rock star, high growth businesses and business people is getting louder. The New Zealand economy generally and the Maori economy specifically need more successful entrepreneurs. Did you know that all the net new job growth in an economy comes from new businesses?

Ian Taylor made the point during the day we spent with the finalists that our young people need more successful business role models. So true!!

Many of these budding role models and businesses would benefit from angel support. Providing capital is only a part of what angels provide. The money is just the fuel in the tank. Fuel in the tank means very little without skill behind the wheel and an experienced support crew. Experienced people who’ve been there before, who know who to talk to and where to source the best resources. And like driving a Formula One car, angel investment is not for the faint hearted. It’s a portfolio game with 90% of your returns coming from just 10% of your portfolio ventures.

More Maori engagement in early stage investment, will find the right time and place to come alive and gain momentum but the word is out now … New Zealand’s angel investment community is keen to do as much as it can possibly can to help.

Ends

 

Please follow and like us:

Success focused vs. Founder friendly or investor friendly

It’s a universal truth that we achieve much more working with each other, than against each other. What’s more, very few of us achieve as much on our own, as we do together.

This is certainly true in early stage investment. In this endeavour, no one ever achieves success on his or her own. No one!

That’s why I struggle – to the point of getting pretty vexed – with the whole “founder friendly vs. investor friendly” thing. I can’t see how it helps either side to the deal; especially founders.

Pitting ourselves against each other is not a great way start to a relationship.

As angel investors we are backing founders because we think you and your business are unbelievably awesome. We want to be part of the inspirational story you are telling. We believe we can add value. We want to help.

We know investors become members of our networks for the following reasons:

  • To lift New Zealand higher – economically and socially;
  • To be actually involved in doing this – by contributing money, expertise and connections;
  • For the cool company – to be involved with like-minded, optimistic, creative people; and
  • For the rich rewards – of course we hope for a financial return but the “psychic return” of doing good and contributing to lifting NZ higher is a key reason why people become angels.

When angel investors are negotiating the terms of a deal they are not looking to ankle-tap the founder or give themselves an unduly, unfair advantage over the founder. Negotiating a term sheet is about aligning the founder and investor to give the business the best chance of success.

Ideally negotiating a term sheet is front footing discussions around economic and control rights to establish three key things:

  • What expectations do we have about the venture’s future?
  • What expectations do we have about each other’s involvement? This should be based on an honest appreciation of each others strengths and weaknesses and how the terms of the deal and our involvement with each other address these; and
  • What happens when things go wrong?

Both investors and founders must fully understand the implications of all the terms of any deal. They need to be realistic about the needs of the business at that particular point in time, with an eye to positioning the business to be in the best position for securing more investment in the future. High growth businesses invariably need more capital.

There is no such thing as a stupid question in early stage investment. So whether you are an investor or a founder be sure you understand the implications of all the terms, understand the impact they will have on future funding rounds, understand the implications they have when things go wrong and when things go well.

To be success focused we need to be founder friendly AND investor friendly. It’s all about alignment.

Please follow and like us:

Governance at the coalface of the future

Hear from our very own Debra Hall (long time AANZ executive committee member) on her thoughts on Governance, the topic she delivers on so well for the AANZ Governance Courses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

I always knew that when I retired from my day job, I wanted to be a company director.  I never imagined how hard that would be – after all, if governance is at least in part about strategy, and I’d made a very good living shaping strategy for my many corporate and public sector clients, why would I not be highly desirable in the governance pool?

Read more

Please follow and like us:

Project16 / Creativity in Business on Sept.1

Project ’16 will focus on Creativity in Business – how can NZ’s creative entrepreneurs and their companies most effectively start, grow and scale their products and services. Our intent is to help NZ’s go global export focused companies lift their game exponentially and take full advantage of their business potential. On September 1st, twenty visionary thought leaders from New Zealand and around the Pacific Rim will come together to share their knowledge and experience about how to best build New Zealand’s future creative businesses.

So – what’s different about the Project16?

Our speakers stay for the entire day, so they can hear what’s said and build on it. And, they are around during the of the breaks (AM/PM teas, lunch & the networking reception) to answer questions and chat.

Project16’s Creativity in Business program will address:

  • What world-class best practices can help us develop and deliver our innovative creative products, services and brands more effectively?
  • What contemporary information do we need to know to grow our creative businesses as quickly and successfully as possible?
  • How can New Zealand’s best and brightest entrepreneurs better position to raise capital effectively?

Whatever your industry or interest, the 2016 Project program offers a rare chance to meet great minds who think differently and to learn from their successes and their failures. Together, we can make better sense of the shifting economic zeitgeist and how we can compete more dynamically in our continually evolving digital world. Join us to connect the dots. Come be part of building a more creative and prosperous 21st Century in (and from) New Zealand.

See Project16 speaker profiles here:

http://www.the-project.co.nz/project-16#speakers

Register for Project16 here.

http://www.eventfinda.co.nz/2016/project-16/auckland

Please follow and like us:

USA ACA trip reports

In May, a “Kiwi Contingent” of about a dozen angels attended the US Angel Capital Association conference in Philadelphia. Five lead investors were awarded an AANZ “scholarship” to support their attendance at the conference. Susan Iorns from AngelHQ, Blake Richardson from Flying Kiwis, George Gong from Ice Angels, Christopher Boyle from MIG Angels and Tina Jennen from Enterprise Angels have all completed reports on the conference. Some of their key insights included; no one ever thinks they changed the management of an angel backed company too soon, company boards must regularly discuss the exit, look for founders who are obsessed with making the business work, the CEO should not lead the exit, there are so many people to learn from at the ACA conference and angel investment is in the best place it’s ever been. You can access all the scholarship recipient’s reports and read more here.

Please follow and like us:

Employment Law Considerations

Lowndes-logoColourThis is general information on employment law in New Zealand. It is not employment advice, nor does it constitute legal advice. If you need employment law advice on a specific matter, please contact us for assistance.

1. Both employers and employees are under a statutory duty of good faith in all dealings.

2. It’s important to get written employment agreements in place. Not only is it a legal requirement, it aligns expectation and provides certainty on terms, including trial periods, notice periods, redundancy compensation, confidentiality and intellectual property obligations, restrictive covenants, etc.

3. Founders are usually employees too – they can also bring a personal grievance against the company for unjustified disadvantage or unjustified dismissal – an employer’s actions must be both substantively and procedurally fair. Where the employer’s actions what a fair and reasonable employer could have done in all the circumstances at the time the dismissal or action occurred?

4. An employee does not have a right to continued employment if a business can be run more efficiently without that position. The key question is whether there is a genuine commercial reason for determining that the position is redundant. Evidence of the rationale (e.g. detailed analysis of the proposal and commensurate savings) should be prepared and maintained to provide evidence of the genuine commercial reason for a restructuring proposal.

5. Without limiting the duty of good faith, an employer is required to give an employee access to relevant information and an opportunity to comment on that information before making any decision that will, or is likely to, have an adverse effect on the continuation of their employment.

6. Consultation requirements and timetable will depend on the nature of the workplace (number of staff, etc.) and context in which any restructuring is to take place (e.g. full business closure? Or individual redundancies?).

7. It is useful to provide affected employees with a written copy of the restructuring proposal – they often will not take in all the information during a first meeting.

8. Keep the costs of terminating the workforce in mind. In a redundancy situation where you’re looking to close the door tomorrow, even if no redundancy compensation is payable each employee remains entitled the notice period set out in their employment agreement, together with all outstanding salary and leave entitlements. (Accrued sick leave has no cash value and will not form part of any benefit payable on termination.)

9. Consider the impact of termination of any employee on your shareholder arrangements. Is there an employee share scheme in place? Do shares vest in the employee on termination? Is the employee required to sell shares back to the Company on termination?

10. Employee vs Contractor. It’s not as simple as claiming a party is one or the other. The real nature of the relationship is important – substance over form. If a “contractor” is determined to be an employee, that party may be able to make a personal grievance claim, claim for unpaid holiday, leave, etc., and tax issues will arise. Relevant matters include the actual operations of the parties, the level of control and integration, supply of own materials and ability to work for others and intention.

Please follow and like us:

Angels head to TechweekAKL

New Zealand’s angel investors, a community which actively supports the development of new technologies, will be out in force at TechweekAKL.

Angel Association of New Zealand member’s are involved in two key events, positioned right in the centre of the week-long celebration of all things new and innovative.

[email protected]: 18th May, from 6pm, The Grid – book your seat here.
Tech Innovation Showcase: 18th May, 3.30–5.50pm, Astrolab – apply for an invitation here.

[email protected]

An important event revealing personal accounts of angel-entrepreneur relationships. It is a must-attend evening for founders, and would-be angels.

In relaxed and informal format investors from Flying Kiwi Angels, AngelHQ, Ice Angels and Enterprise Angels will share their personal stories, including their individual entrepreneurial experiences, investment thesis, what they expect from entrepreneurs and how they help grow successful companies – alongside investing their money.

As well as bringing together angels, entrepreneurs and angel groups [email protected] event also brings together key organisations in our New Zealand innovation ecosystem. The event is being held at The Grid, organised by Venture Centre, and is only made possible with the sponsorship of AANZ, alongside New Zealand Software Association and AngelEquity.

To book your ticket and make the most of the opportunity to share a drink, nibbles and some rare ‘get to know you time’ up close and personal with Angel investors click here

The Tech Innovation Showcase

An opportunity for current angel group members to register for a private event focusing on some of the IP rich organisations emerging from government-funded Tech Incubators, Astrolab, Powerhouse Ventures and WNT Ventures. Set up by Callaghan Innovation the incubators are mandated to draw complex IP from Crown Research Institutes and NZ University R&D departments for commercialisation. The event is being held at Astrolab for an invitation click here.

Please follow and like us:

New Zealand: Angel Investment activity by Harveen Narulla

This week I attended the Asian Business Angels Forum in Queenstown, New Zealand. It was well attended. I noticed some things and gained valuable insights from speaking with members of the community.

A few things jumped out at me:

  • How many people in New Zealand were interested in angel investing;
  • That they recognized the limitations of the help that they could give to the companies, but still persisted undeterred;
  • That the angel community had over time coalesced in groups, mainly geographic based;
  • That the government was aware of the angel investment community and it had ministerial attention and support from heavyweight ministers;
  • That there were strong co-investment programs (which I need to learn more about);
  • That increasingly the angel community was looking within itself for leadership to better organise itself with a view to making better decisions (on for example due diligence) and getting better results from its investment activity;
  • Leaders had emerged from within the community, and were well supported by most of the community; there was also a big push from these individuals to disseminate best practices among the angel community;
  • That deals were shared among the different angel investment hubs, so in practice almost the entire community could participate in deals.
  • Some startup founders I engaged with there had interesting perspectives in relation to the need to build sound businesses that generated profit, more than just aiming for a big exit.

It seems much of the mechanics of the community’s working are a result of having to deal with the circumstances in which the community operates:

  • Follow-on or growth funding is limited;
  • the domestic market is small and not of meaningful size to fulfill the ambitions of most of the startups; hence companies need to head overseas early or turn profitable quickly;
  • being a relatively large and sparsely populated country, it was natural for personalities and individuals instead of group structures to have taken precedence in the early growth phases of the community.
  • However, there had then been a phase of experimentation with various incubator structures. Many of these had not yielded outstanding results, and the lessons were still being discerned and digested.
  • The size of the country also led to an understandable push to move organized activity around the country, when it may have yielded more return just being allowed to take root in particular places.
  • The lack of follow on funding and advice and market opportunities for growth had led the community to turn to the US. This in turn had led to valuation inflation, and migration of companies out of New Zealand.

What I appreciated about the community was that there was recognition that some of the early phenomena resulting from the natural evolution of the community should be corrected. In particular, it used to be seen as a badge of honour for startups to do second or third rounds at large valuations, which ended up trapping some start-ups up a tree they then had to make the unpleasant decision to climb down from. Today there seems to be more understanding that valuations need to be explainable by reference to where the company was in its growth journey.

The community was also very open to learning how to do things better.

There, I feel the experience we have had growing Hatcher’s processes and portfolio could add some value. Points I made in my panel session about the value of applying process and intensive involvement as a venture builder, focusing on a niche (B2B in our case), having a clear idea of founder profile (we preferred older founding teams that had a range of experience and competences), were not lost on those listening. I had many good conversations about this after my panel session at the event and look forward to more such exchanges.

Another thing that struck me – and this is larger than just the angel or venture scene – was how down to earth, open and sincere people in the community were. There was a lot of warmth, tremendous amounts of kind sentiment, and a willingness among people I spoke with to make introductions. This community clearly has a strong ethic and all the ingredients for progress together.

Hatcher looks forward to being involved with the New Zealand venture community in the years ahead.

See the original post here

Please follow and like us:

The Angel Evangelist

John May is founding chair of America’s Angel Capital Association (ACA). He’s championed the cause of entrepreneurs and angel investors since realising big organisations weren’t for him, establishing five US angel groups and now working internationally to establish more. He’s co-authored books on the subject, is managing partner of angel investment firm New Vantage Group and is investment director for UK-based global venture fund, Seraphim. He came to New Zealand to meet our angel community. We asked him why?

I loved it when I was here before, but I wanted to come back for longer, not just for a four-day thing… to get a better feel for the New Zealand business community, the angel community, but also the neighbourhood. It hasn’t disappointed.

 

But to what end, exactly?

I’ve been around the world running the (Ewing Marion Kauffman Foundation’s) Power of Angel Investing series and trying to get a better feel for what’s going on in different countries and how best to collaborate.

We’re not looking for countries that have the best deals to go write cheques, that’s the big fallacy: we’re not running international angel development workshops and building global networks because we’re deal orientated; we’re movement orientated.

What happens when your company wants to go from here to a bigger market in Southern California? Wouldn’t it be nice if there was communication between the angels of Southern California and the angels backing the company here? You don’t want to hire a lawyer in Southern California to tell you how to run a business in Southern California…wouldn’t it be better to have mentors and supporters in Southern California who are co-investors.

So you wanted to come here to build connections?

Yes and more. One of my big things is to get more overseas investors to come to our ACA conference to learn what we are doing.

Here’s some sobering statistics: even in the US – the largest economy in the world, the largest venture capital community in the world – we believe only about 5% of households are wealthy enough to be angels, not friends or family, but proper angels. And my definition of a proper angel is an individual who invests their own money in a stranger’s business, in a minority position, gives their time as well as their money and there is no one else in-between.

And of those 5% who can, we think there’s only 5% who do. And now we’re getting to the bottomline: not only do we think that only 5% of those who can, do, only 5% of those who do, ever do it in a structured, disciplined, portfolio diversification, networked group way and I bet New Zealand is pretty similar.

You really push the group concept. But why is it so important for that 5% of 5% to be part of an investment group?

What we’ve learnt is that we need to diversify our portfolios, which means getting out of our comfort zones. It also takes more money than we have personally to take a company that’s going to be significant from startup to breakeven and it takes time to do due diligence on the opportunity. Who’s going to make the phone calls? Who’s going to have the meetings? Who’s going to do the market research? So if you decide you’re going to diversify, if you’re going to do due diligence to make you comfortable, and you’re going to have enough money on the table to make it a viable company, what you learn very quickly is you can’t be a solo angel and do this.

What our companies need are cheques for US$250,000 to US$1 million and to deliver that and diversify your portfolio you need to be in a group, even better, a syndicate of groups – that’s the big movement in the US right now – the syndication of groups.

Why is that so important?

Well if you need US$2 million, it may be above the capacity of an individual group, but you may be able to bundle four angel groups or funds together and all of a sudden you’ve got a couple of million dollars, so then the company can finish developing their product or get their first sales and really get on their way.

You wrote the book: “Every business needs an angel” – why does every business need an angel?

The real wink is every high-growth, successful business, as opposed to a mom and pop store, needs an angel because it’s lonely out there doing it on your own; you need a mentor; you need risk capital; there’s so many reasons why angels are important for companies…an entrepreneur gets a board member, a friend, an adviser.

Doesn’t it depend on the angel they get?

Yes, and it depends on the entrepreneur. Some entrepreneurs just give lip service to the help; they really just want the money. Then there’s the lip service of an angel who says I’m going to be your friend, I’m going to be your adviser, I’m going to be available and then doesn’t answer the phone. It doesn’t always work. But it’s an art not a science.

The real wink is getting the right angel with the right entrepreneur because some angels can be great board members, but aren’t good at helping to find staff, sales or marketing; while some are good as a shoulder to cry on, but aren’t good at financials; some are good for startup and some are good for growth companies. That’s another reason why groups are better than individuals.

The right angel should always be a joint decision between the entrepreneur and the investors. There should be a chemistry between them and there should be a staging of the need, so the right investor for the company at the right time.

Should angel investors always have representative on the board?

Advisory boards are very important, but companies don’t need boards of directors until they’ve grown a little bit.

It’s also very important for [the chosen investor representative] to have a way of communicating to the other angel investors, so the entrepreneur doesn’t have to waste their time communicating with all of them.

What’s the most common mistake entrepreneurs make when they seek investment

Thinking they know it all. It’s quite rare to find a coachable, industry-savvy, less egotistical entrepreneur their first time around.

I’m a big believer in investing in second-time entrepreneurs. A serial entrepreneur is a wonderful thing to invest in, because someone has already paid for their mistakes the first time round. But that’s another thing that’s fascinating about here: New Zealand is a place where almost everyone is a first time entrepreneur.

Entrepreneurs need to understand the first thing angels look for is management, management, management; the second thing is a large market; and the third, if we’re smart, is the product or service, the technology, whatever. Yet most entrepreneurs want to sell us on the fact their thing is faster, cheaper, better, slicker, more fun first. But we invest in the jockey not the horse.

The problem is an entrepreneur has to have the dream and the ego to handle it. So there is a natural tendency to want to invest in someone who has a lot of confidence and a lot of energy. But if they are really going to grow their business into a significant company, they need to be humble enough to understand they can’t know everything: they are going to have to hire people; they are going to have to listen to people, so finding someone who is coachable is important.

What’s the most common thing angels do wrong?

Hearts over heads… and not providing enough tough love once we’ve invested: are you being direct enough; are you talking about the exit; are you educating the entrepreneur; are you telling it like it is instead of waiting until it gets worse to say something? That’s why you have to have the right chemistry; you can’t be in awe of each other. The entrepreneur shouldn’t think we’re just money and we shouldn’t think they are running the company so we shouldn’t give them our frank opinion.

Why do you love this area so much?

It’s the people. It’s the entrepreneurs. They are so important because they make businesses; they make money. We benefit from the vision, the energy, the business model of the entrepreneur…so the excitement for me is being a part of this journey.

Plus it’s what it does. It boosts any economy, any city to find a way to finance innovative new technologies and products. Economies will go backward if they don’t stay in touch with newer, faster ways of meeting their needs. And it creates jobs, futures. Major corporations are net job losers; they cut costs, find efficiencies. All the research shows startups and SMEs are the net job creators of modern economies.

But angels also have to make money in the end or it’s a losing proposition and will fade away.

What should we be doing more of in New Zealand to improve our angel ecosystem

Find as many ways as possible to educate the media, the government, the wider community that supporting high-growth companies matters; make people aware of the benefits to the entire economy of making this work, of encouraging more entrepreneurs, of making smarter entrepreneurs and of helping to make more and smarter angels.

We need to encourage more angels to increase the amount of capital available, because the more capital there is available the more likely people are to diversify and thus the more capital there is for different sectors to develop new products, and we need more angels to bring different skills into the mix. There is so much going on in social media and some of the new technology, for example, that you almost have to find a way to search out the recently cashed-out, under 40-year olds because they can make a material difference to understanding the current consumer market for those sorts of companies. It’s also hard to be an investor and help an entrepreneur and do due diligence on them if you don’t understand what they are doing.

We tend to talk to ourselves far too much.

By Lesley Springall

Please follow and like us:

#ABAFNZ15 Pitch on the peak

The first ever Asian Business Angels Forum in New Zealand will kick off on Wednesday 14th October with our country’s best ABC’s (Angel Backed Company’s) getting in front of up to 200 guests, with over 50 international Angels from 12 countries at ‘Pitch on a Peak’.

NZTE is partnering with the New Zealand Angel Association and Callaghan Innovation to host the Pitch on a Peak showcase, which features exciting emerging technologies through to high-growth internationalising tech ventures.

The event will be held in Queenstown at the spectacularly elevated Skyline Gondola Restaurant.

About Pitch on a Peak

The aim is to showcase the pinnacle of New Zealand’s high-growth technology companies to a domestic and international investor audience.

There are three groups of companies participating in Pitch on a Peak:

·     Early stage technologies – demonstrating the best of the best coming out of labs across New Zealand

·     Companies looking for their first round of domestic angel funding – investment critical for businesses on a high-growth trajectory

·     Internationalising companies – taking New Zealand to the world

Companies are seeking a mix of investment, valuable connections, and/or the experience and skills that investors can bring to fastrack their success.

Each group of companies will be introduced by an experienced investor who will discuss return horizons at seed and expansion stage, possible growth plans, capital strategies, liquidity scenarios and acquirer activity

The showcase is powered by NZTE’s Better by Capital programme, and wraps a bespoke plan and a dedicated NZTE Investment Manager around each company. Companies receive:

·     Capital readiness assistance

·     Pitch training

·     A platform to present their investment offering and network with up to 200 investors

·     Targeted investor matching

·     Access to the international NZTE Capital team and our contracted external industry experts Deloitte, Lance Wiggs, Grant Thornton and Catalyst Advisory

It is a challenging, fast paced and highly valuable experience for any company, and each participant’s highlights are different from the next.

Attendance at Pitch on a Peak is limited to qualified investors and is strictly by invitation only. Guests can expect the following at Pitch on a Peak:

·     A jaw-dropping ascent to the showcase via priority gondola

·     The best of New Zealand’s tech innovation showcased in one of our most iconic venues

·     A stimulating evening of compelling investment opportunities and creative technology demonstrations

·     Quality food and beverage offerings from some of New Zealand’s top producers

·     An exclusive opportunity to mingle in a unique investment community from all over the world

Pre-registration is open for investors. Click here to complete the form and book your place at this exclusive event

Please note that investment opportunities do not represent offers of securities to the public. Before investing it will be necessary to determine your eligibility in accordance with the Financial Markets Conduct Act 2013.

 

Please follow and like us:

AANZ Update for Investors about FMCA Compliance

AANZ Advice on FMCA Compliance

Introduction

Late last year the Financial Markets Conduct Act 2013 (the FMCA) came into force and brought with it a new regime for regulation of the capital markets. The “bright line” definition of an eligible person (net assets of at least $2m or gross annual income of $200,000 for the previous two years) was abandoned.

Rather than tick-box compliance, this new regime approaches compliance through the lens of what is appropriate in light of the FMCA’s purpose and acting professionally. The focus is on promoting fair, efficient and transparent markets, which means more useable disclosure documents for investors, but also appropriate exclusions so that regulatory burdens are more proportionate to the risk of potential harms being addressed.

It’s not practical or economic for early stage companies to comply with the disclosure requirements of the FMCA when raising capital so they therefore look to rely on the FMCA exclusion regime. These are generally referred to as “Schedule 1 Exemptions”.

A clear understanding of the application of these exclusions by early stage companies, their investors and advisers is therefore an important component of the vigour and health of the early stage ecosystem.

The FMA has a set of useful FAQs, which can be found here.

The FMCA specifies three broad categories of exclusion:

  • wholesale investors;
  • close relationships; and
  • exclusions based on the nature of the offer.

Within these three categories there are two key exemptions applicable to angel investors. Satisfying the conditions of these exemptions minimises the risk of action by a disgruntled founder or fellow investor.

Angel investors fit most neatly as either meeting:

  • “eligible investor” criteria under the ‘wholesale investor’ exemptions, or
  • the requirements of the “small offers” regime under the ‘certain offers as a whole’ exemptions.

In our recent discussions with the FMA two additional issues have been clarified with respect to small offers:

  • the implications of investors using a nominee structure; and
  • the implication for angel deals of the advertising strictures under the FMCA.

Wholesale Investors

There are a range of categories of wholesale investor but the one most angels will rely on is the “eligible investor”. Eligible investors may self-certify but a third party must verify the self-certification; either a lawyer, chartered accountant or authorised financial advisor.

An “eligible investor” is defined, in summary, as having “previous experience in dealing with financial products such that they can assess the risks, information needs and adequacy of the information provided.”

There was some initial concern that verifiers of eligible investor certificates would be unwilling to do so because they were left exposed due to the subjectivity implicit in making this assessment and the risk that the previous experience could be found to be insufficient.

The FMA has subsequently provided a substantial degree of comfort for certifiers and offerors.

The FMA advised that the certifier need only:

       ensure that the person self-certifying has been sufficiently advised as to the consequences of being certified; and

       assess whether, factually, the “relevant experience” cited has actually occurred (i.e. they do not need to provide a value judgment as to whether or not the experience cited is, in fact “relevant” experience). 

By way of example, if a person, wishing to make an investment in a start up company, cites previous experience in trading listed stocks, a third party lawyer, counter signing the certificate can be comfortable in doing so as long as:

       they are comfortable that the investor has been sufficiently advised as to the consequences of giving the certificate; and

       they have no reason to believe that the stock trading never actually occurred (i.e. he/she does not need to consider whether or not the experience in listed stocks was actually “relevant”).

In summing up, unless there is reason to believe that the actual facts stated in the certificate are incorrect or the certificate does not include statements that it is required to include, the offeror will be able to rely on an eligible investor certificate and no action could be brought against the independent advisor on the basis that their only role is to advise the relevant person as to the consequences of self-certifying as an eligible investor.

We have been assured there is no need to certify angels on a deal by deal basis. This is certainly the case if they fall under any of the “wholesale” investor definitions. As long as wholesale investors are certified every two years and the certificate relates to the class of financial products (in most instances for angels this means acquiring equity securities or making loans convertible into equity securities) this is sufficient.

Small offers

The small offers exemption (often referred to as an SOE) is a personal offer of equity or debt securities:

       where no more than 20 people are issued or sold the financial products;

       in any 12 month period; and

       where no more than $2m is raised in the same time period.

A personal offer is one made to, and that may only be accepted by, a person who is likely to be interested in the offer having regard to:

       previous contact or a professional or other connection between the offeror and the person;

       statements or actions made by the person indicating that they might be interested in such offers (such as the person’s membership of an Angel network); and

An offer will also be a personal offer if it is made in the same manner to a person who has had an annual gross income of more than $200,000 per annum over the past two years. 

It is also important for an angel backed company to be aware there is an obligation on them to notify the FMA within a month of the relevant accounting period that they have made a small offer. In clarifying the extent of this obligation the FMA made it clear the issuer need only report once a year on a very simple basis:

       the name of company seeking investment,

       note the type of securities offered,

       the date of distribution of the document containing the key terms,

       the number of investors (no names required); and

       the amount raised.

The ‘personal offer’ nature of this exclusion has a fairly high degree of subjectivity. It is therefore important, particularly in an angel network context that any investment event is clearly introduced with the disclaimer that the offers made at the event are “personal” and do not “constitutea regulated offer of financial products i.e. an offer to the wider public”. Investors will not be able to take up any offer unless they clearly meet the criteria of FMCA Schedule 1 exemptions.

It is also important to be aware that relying on this exclusion requires the company raising funds to be very careful that ONLY those people who fit into one of the personal offer categories receive the offer. Advertising has a wide meaning under the FMCA as essentially “any communication promoting an investment offer, or intended offer, to a section of the public”.

Advertising when wholesale and ‘small offers’ investors are involved

Issues arise when a company is pitching to both wholesale investors and those who seek to invest under the ‘small offers’ criteria. The FMA’s guidance is that the company must take “all reasonable steps” to ensure any advertisement about the small offer is not received by any investors that don’t meet the ‘personal offer’ requirements.

So a company may advertise a contemporaneous wholesale offer as long as in that advertisement it is clear the ‘wholesale offer’ may only be accepted by people meeting the requirements of a wholesale investor.

It is of course common for angel investor networks to notify their existing members about new offers, and those members may then pass on information to others. For contemporaneous ‘small’ and ‘wholesale’ offers the company should ensure that any communication to the angel investor network makes it clear that there are two offers and that only the wholesale offer communication is able to be passed on to other wholesale investors.

The FMA have made it clear that they are very happy to be approached if anyone has concerns about advertising. The first port of call is [email protected] to raise these concerns. 

Nominee structure and the Small Offers Exclusion

A number of angel networks operate nominee companies. These entities hold the shares of their members who invest in any individual angel deal. The nominee in most of these instances operates as a bare trustee holding the shares for the individual angel. The nominee structure minimizes the number of shareholders on the capitalization table.

In our discussions with the FMA we have been assured that the nominee structure does not limit the usefulness of the small offers exemption.

We explored a number of different factual scenarios with the FMA that lead to different assessments of how the FMCA applies, but in general, to reiterate the point just made, we were advised that the small offers exclusion does not prevent investors investing through a nominee company.

Where investors are relying on the ‘small offers’ exemption, the 20-investor limit applies to the number of persons to whom financial products are issued or sold. Where a nominee company holds shares on bare trust for an underlying investor, the effect of the FMCA is that the underlying investor is still receiving an equity security therefore the underlying investors count in the 20-investor limit, because they are still being sold financial products.

The impact of the advice we have received is that it is necessary for AANZ members to keep clear records, on a deal by deal basis of the relevant exemption under which individuals are investing. The more members categorized as ‘wholesale investors’ the easier this aspect of network administration will be.

Conclusion

In an ideal world, all this would be more straightforward and we would have unequivocal advice that the way we are operating is legally robust and all participants are safe. There is no such thing as an ideal world! The AANZ is nevertheless satisfied the FMA has a high level of understanding about how we operate and even more fundamentally about our intention to do so in good faith within the confines of the Act.

Please follow and like us:

#ABAF15NZ Speakers – Raiyo Nariman

Meet the speakers #ABAF15NZ – Raiyo Nariman

The Angel Association of New Zealand brings the 2015 Asian Business Angel Forum to Queenstown this October. Leading investors and early stage business specialists from around the globe will share their knowledge and make their New Zealand connection at this premier global investor forum

Presenters sharing personal learnings garnered from years of investing with the carefully curated audience of Angel groups, network and fund members from across this dynamic country include Raiyo Nariman founding VC of the Malaysian Business Angel Network.

Register-now

Raiyo Nariman specializes in commercialization of technology, research & IP, and the development, funding and growth of start-ups. As a Venture Manager, Raiyo personally invests and partners with founders, taking a hands-on role to ensure successful execution of commercialization & growth strategies, including international market entry and capital raising.

Raiyo’s entry into the venture arena started in New Zealand, as part of the founding executive team for a Foundation, where his focus was on the development, funding and incubation of new ventures. Raiyo’s executive-level engagements include CEO of Canterprise, the venture company at University of Canterbury, and MD of Encore Professional Services, a business he spun-out, established and grew for a PE fund in Hong Kong.

As the founding VP for the Malaysian Business Angel Network, Raiyo played a key role in establishing the current angel investor community in Malaysia and has also established, developed and managed angel networks in Hong Kong and Singapore, and works with angel clubs and associations across Asia and the West.

Raiyo is MD and Partner for Mercatus Ventures, a Malaysian-based early stage venture firm that invests in, and takes a hands-on role to develop, regional ventures. He is also a Partner in Serendipity Ventures, a Hong Kong-based boutique venture management firm, where he personally invests in early stage ventures and takes them to market.

Meet Raiyo, along with a host of angels from New Zealand’s angel investment community and the world at the Asian Business Angels Forum, Queenstown, October 14-15. Only a handful of seats remain.

Be quick to register yours. ABAF2015, NZ

Please follow and like us:

#ABAF15NZ Speakers – Marcia Rick Dawood, Jamie Rhodes

Meet the speakers #ABAF15NZ – Marcia Rick Dawood, Jamie Rhodes

A truly international trio rounds out an exceptional line-up of speakers at the 2015 Asian Business Angel Forum (ABAF) hosted by the Angel Association of New Zealand. ABAF event plays a pivotal role in bringing together speakers and delegates from 12 of the most active and connected early-stage investment ecosystems in the world.

Marcia Rick Dawood, Sasha Mirchandani, Jamie Rhodes all come to ABAF with intent to share a combined 100 years of experience in founding, finding, screening, funding, growing and exiting startups.

It’s an honour to welcome all three to Queenstown, New Zealand, from 14th until 16th of October to share their insights at #ABAFNZ15.

Register-now

Marcia Rick Dawood is on the Board of the Angel Capital Association (ACA) in the United States an organisation which represents over 12,000 accredited investor members, 220 angel groups and accredited platforms who have invested in well over 10,000 entrepreneurial companies.

Marcia is also Managing Director of Golden Seeds, an investment firm dedicated to delivering above market returns through the empowerment of women entrepreneurs and those who invest in them. The firm’s nationwide angel network is the fourth largest and most active in the US with 250 members. Its venture capital group has $35million under management. The firm, headquartered in New York, also has groups in Boston, San Francisco, Dallas and LA and has invested over $50million into 52 companies since 2005.

Syndication of deals between Golden Seeds and BlueTree Allied Angels is also lead by Marcia where she is also a member and Chairman of the Education committee. BlueTree’s focus is investing in regional, early-stage companies.

Not content with the ACA and 2 angel funds Marcia is Managing Director of OneHEEL Partners in Greater New York too. She focuses on helping businesses grow, through direct investment and expert consulting services. The firm also offer a laboratory with resources to grow, develop and encourage business ideas and investments, identifying those concepts with the highest potential, and providing the financial and business expertise required, leveraging the background and network diversity of its partner members.

She supports women led, impact as well as tech/life sciences and overall fun companies and is passionate about education as well as investment. In her 16+ year career prior to becoming an active investor she gained experience and success in operations, sales and marketing with Kaplan Higher Education Campuses (KHEC). She has also walked the road of an entrepreneur as a founder, owner/operator of a professional sports franchise.

Register-now

Jamie Rhodes is a serial entrepreneur and investor with deep experience in science and technology. He is co-founder of National NanoMaterials, manufacturer of Graphenol™, a functionalized form of graphene and previously founded Perceptive Sciences Corporation.

He brings over 30 years of experience managing investment in technology with him to his presentation at ABAF based on nine years in management at IBM, being co-founder of a venture capital funded start-up focused on the telecom industry (which IPO’ed in 2011) and, in the early years of his career, working with numerous start-ups, most notably National Instruments in its early stage. He holds both a Bachelor’s of Science degree and a Master’s of Science degree from the University of Texas at Austin.

A leader in his community in Texas, Jamie has been named one of ‘The 30 Most Influential People in Central Texas in the Last 30 Years’ by the Austin Business Journal and ‘Technology Volunteer of the Year’ by the Greater Austin Chamber of Commerce where he previously served on the board.

Among other advisory and governance roles Jamie also counts his position on the board of the Central Texas Regional Center of Innovation and Commercialization and the Texas Tri-Cities Chapter of the National Association of Corporate Directors, St. Edward’s University, Texas State University and the University of Texas. He is also an IC2 Fellow.

With the support of the GACC in 2006 Jamie founded the Central Texas Angel Network (CTAN), which provides funding and support to Texas entrepreneurs across a broad spectrum of industries. Jamie, along with a group of local investors and community leaders, were among the early adopters who believed that early-stage investing could provide a meaningful return for investors while also spurring local economic growth and so CTAN was formed as a not-for-profit corporation. Like most angel groups CTAN began with individual members of the organization volunteering their time and expertise to review potential investments, assist entrepreneurs and take care of administrative duties.

Jamie has also organized angel groups around the state of Texas into the Alliance of Texas Angel Networks, which represents over 300 investors and investment in over 60 companies in 2012. He is vice chair of the board of directors of the Angel Capital Association, a national organization spun out of the Kauffman Foundation representing seed stage investors.

Register-now

Meet the trio in person, along with a host of angels from New Zealand’s angel investment community and the world at the Asian Business Angels Forum, Queenstown, October 14-15. Seats are now very limited. Be quick to register yours. ABAF2015, NZ

Please follow and like us:

#ABAF15NZ Speakers – Carolynn and Jon Levy

Meet the speakers #ABAF15NZ – Carolynn and Jon Levy

Hosted by the Angel Association of New Zealand, the 2015 Asian Business Angel Forum brings together leading investors and early stage business specialists from around the globe to share their knowledge make their New Zealand connection.

They join a carefully curated audience of investor members of Angel groups, network and fund members from across this dynamic country bought together by the AANZ to celebrate this small country’s big contribution to early stage investment and build international relationships.

Among the highly experienced line up of speakers AANZ is extremely pleased to be able to bring Carolynn and Jon Levy from Y Combinator, one of the most successful incubators in the US to ABAF to share their insights and experience at #ABAFNZ15.

Register-now

Carolynn Levy is a partner at Y Combinator (YC). She was previously at renowned West Coast US firm Wilson Sonsini Goodrich and Rosati, where she helped hundreds of startups with legal questions and acted as Y Combinators counsel for 6 years. She has a BA in political science from UCLA and JD from the USF School of Law, and is a member of the State Bar of California.

Jon Levy, is also a partner at Y Combinator and previously counselled public and private technology companies as an attorney for Wilson Sonsini Goodrich and Rosati. He ran ThinkEquity’s private placement department and worked as a Managing Director at Merriman Curhan & Ford. Jon earned a J.D. from the University of Michigan Law School, and a B.A. in English Literature and Religious Studies from Wesleyan University.

Both Carolynn and Jon are skilled and experienced in dealing with entrepreneurs at all stages of the lifecycle, offering services to those beginning their ventures, those exiting and experiencing the process of merger or acquisition and those that recycle their capital investing in the new. They make themselves available for office hours at YC and Carolynn is active in entrepreneur education via Stanford University providing insights to founders Finance and Legal Mechanics for Startups helping them to get the structure right at the start.

Joining YC was a natural move for the couple, Carolynn says “YC was becoming bi-coastal and needed legal help on the west coast.  So for years, as an associate at WSGR, I helped YC’s portfolio companies with formations, fund raising, etc.  YC kept getting bigger, and my husband Jon joined YC as a legal consultant.  Jon was (is) so happy working with YC because of the people and the culture.  So eventually, since YC kept getting bigger, I decided to leave WSGR and come to YC as a full time partner.  It was a great decision.”

She councils startups with pragmatic guidance, for instance “It doesn’t matter who thought of the idea, who did the coding, who built the prototype, or which one has an MBA. It will feel better to the whole team if the allocation is equal because the whole team is necessary for execution. The take away on this point: in the top YC companies, which we call those with the highest valuations, there are zero instances where the founders have a significantly disproportionate equity split.

Y Combinator itself has an impressive track record, so in their time as independent and in-house council Carolyn and Jon have been involved in some of the biggest deals and best known companies in technology today, including: Airbnb (valued at approx $10B), Dropbox (valued at approx $10B), Stripe (over $1B and growing), Twitch, Heroku and Reddit. Twitch (formerly known as Justin TV) was acquired by Amazon for $970M, Heroku was acquired by Salesforce for $212M.

As detailed by investors following YC’s progress tens of other YC companies have been acquired, those “based on reports had a price greater than $10M were Parse (Facebook, $85M), SocialCam(Autodesk, $60M), Xobni (Yahoo, $48M), Cloudkick (Rackspace, ~$50M),Loopt (GreenDot, $43M), Wufoo (SurveyMonkey, $35M), Omnisio(Google, ~$15M), 280 North (Motorola Mobility, $20M), and Appjet(Google). Parakey‘s acquisition by Facebook likely involved Facebook stock which is now worth a greater amount also. Others that were smaller but non trivial and were likely deemed successes by the founders were Auctomaticand Zenter.

Meet Carolynn and Jon Levy, along with a host of angels from New Zealand’s angel investment community and the world at the Asian Business Angels Forum, Queenstown, October 14-15. Seats are now very limited. Be quick to register yours. ABAF2015, NZ

Please follow and like us:

Steve Blank – Angels and the Lean Startup #ACAAngelSummit15

Angels Connect NZ series – Bill Murphy from Enterprise Angels reports from ACA Conference 2015

A major highlight of the American Capital Associations annual conference was Steve Blank’s presentation of his customer development methodology – a process which has had an impressive impact on the teaching of enterprise creation in the last decade.

Steve, an academician, serial entrepreneur and investor with over thirty years experience in the technology industry who has founded or worked within eight startup companies, (four of which have gone public), is recognised for being one of three founders of the Lean Startup movement.

His contribution was recognising that commercialisation is a process of testing a series of hypothesis. He currently shares his theories at Haas School of Business, University of California Berkeley, Columbia University and the California Institute of Technology (Caltech). His methods are now being taught in more than 200 universities worldwide, and are recommended by the National Science Foundation and National Institutes of Health in connection with federal grants.

Prior to the lean startup movement and wide spread use of Steve’s customer development methodology investors assumed because they funded a company the entrepreneur would follow a set plan and the board simply monitored it. Investors were treating startups like they were big companies – work out a business plan and then simply implement it.

Great tools were built for execution against plans in large corporations and then used in early-stage ventures and it was assumed this was enough. People who didn’t execute were fired.

Steve proposed that while large companies execute known or proven business models, startups don’t. What angels and other early-stage investors thought they were funding – execution – was actually the search for a scaleable business model that created true value. Instead of assuming entrepreneurs were ‘doing it wrong’ the question that should have been asked was ‘are the critical assumptions about the business plan wrong’?

He has gone on to show that a large percentage of the time entrepreneurs are just guessing about execution. There are no models for early stage venture execution – and no-one is executing in that first year. They are in fact just burning cash conducting a search for that business model – performing a series of experiments to test a problem, solution, a product and a market.

He then went on to create a much-needed methodology to do this work in a robust and repeatable way.

The customer development methodology is now well documented. A good place to start learning more about it is at www.steveblank.com or on his free Udacity Lean Startup course.

Here are the key points Steve shared with angel investors at ACA:

  • Customer development is a process – founders need to get out of building and turn hypotheses into fact by testing the problem exists, the solution is valuable, the product will work and the market wants it.
  • Only then should they build a minimum viable product.
  • Founders need to do the work themselves so that they hear first hand that ‘this or that’ is a bad idea or ‘I wouldn’t pay for it’, read non-verbal signals and pick up on leads to alternatives that might prove to be the solution, ‘Oh we don’t want that – but if you could invent X we would…’
  • Talking to a minimum of 10 to 15 customers a week is the role of everyone working on the startup, with a goal of talking to 100 to 150 potential customers being the benchmark. This number is shown to produce the best results.
  • Then the founder can report back, ‘here’s what I thought, here’s what I learned, here’s what I’m going to do’.

At the conference Steve also pointed out a great thing about this process is tech founders already understand it. The process of defining hypothesis and testing it is used in their work to create and test software and hardware. Striving for evidence based commercialisation is similar to the process engineers go through to work towards deploying programmes and technologies that work.

Its a proven process for minimising time, money and resources.

So, what should angels learn and do that’s different in light of the lean startup movement and in particular customer development methodology?

  • Recognise that often all the entrepreneur has in reality is a hypotheses – ask for evidence or at least what the plan is to collect the evidence.
  • Understand that a startup is a temporary organisation designed to search for repeatable and scaleable executable business model – it is not a business yet.
  • Know the goal is not to stay a startup, but rather to build something which has real value to a set of customers – a sustainable enterprise – and if it scales too you are going to increase the speed of growth and hopefully the size of your returns.
  • Don’t fund people to execute on an idea, that shouldn’t be done on angel money. Before investing check what evidence the entrepreneur has collected that who they say are customers, really are the customers of the product or service they propose. Ask who they have talked to (and how many) and how they have tested their hypotheses. Rather than angels finding out by funding entrepreneurs ideas and blowing $500k, get the founder to go out and do this validation work themselves. Take the time.
  • Then insist you get access to all those conversations and get the founders perspective on the evolution of the idea.
  • Work with founders who are passionate about doing the quantitive and qualitative validation of facts themselves, using a marketing research company to validate the market is not as effective. It is critical is that the people with skin in the game validate whether anything a marketing company tells you is true.
  • Get out of the building yourselves as angels too, make validation your work too – the purpose being to inform the founder’s vision.
  • Your job is not to fund someone to just do focus groups which come up with superficial data such as ’47 say one thing 3 say another’ the skill you’re investing in may be a founder’s ability to pick up on the feedback from the 3 and testing the opportunity to build a business model around them. (47 say sell it for $9.99 – 3 say its an enterprise play and we’ll pay $200k).
  • Once you have a marketing plan aim to test it yourself and see what you learn that’s different from the entrepreneur’s plan.
  • Celebrate the fact that the startup is a search for that executable business model rather than focus on the original business plan and its implementation. Be glad when you and the entrepreneurs learned these new important things instead of beating up the founder for not delivering on a plan.
  • Do the customer validation test yourselves. When you hear ‘I want to order now’, say ‘OK give me $20 I’ll hold it and give you the product when its done’.
  • Invest with the full understanding the initial goal of a startup is to maximise learning not revenue. Returns come from real value-creating scaleable, sustainable business models that are born from that learning.

Bill Murphy

For more highlights from attendees who attended the conference clik.vc/Angels_connectNZ

To meet and hear from international angels and leaders in New Zealand’s angel investment community secure your seat at one the southern hemisphere’s largest international exclusive investor events Asian Business Angels Forum, being held in Queenstown, New Zealand, October 14-15 2015.

Screen Shot 2015-04-22 at 9.57.20 pm

Screen Shot 2015-04-22 at 9.58.59 pm

Screen Shot 2015-04-22 at 10.00.00 pm

Screen Shot 2015-04-22 at 10.00.49 pm

Screen Shot 2015-04-22 at 10.02.08 pm

Screen Shot 2015-04-22 at 10.03.18 pm

Screen Shot 2015-04-22 at 10.04.35 pm

Screen Shot 2015-04-22 at 10.05.55 pm

Screen Shot 2015-04-22 at 10.08.58 pm

Screen Shot 2015-04-22 at 10.10.17 pm

 

 

 

Please follow and like us:

#ABAF15NZ Speaker – Ian Sobieski

Meet the speakers #ABAF15NZ – Ian Sobieski

The Asian Business Angels Forum 2015 takes place in Queenstown, New Zealand and will run 14-16 October. The event has attracted an impressive line up of speakers from all over the world.

The AANZ is particularly proud to have secured Ian Sobieski as a key presenter. Ian leads the Band of Angels, one of the United States most active and successful angel groups.

Register-now

The Band of Angels is an impressive group of high-net worth individuals who are all former officers or founders of the kinds of high tech companies that have made Silicon Valley famous. They have invested approximately $231M into 270 startup companies helping to create more than 3,000 jobs. More than 55 of these companies have had successful exits and 10 have IPO’ed.

Growing up in Virginia close to a significant US naval base, Ian was inspired to look into how to make submarines quieter. This led to him being a finalist in the 1987 Westinghouse Science Talent Search.

Ian held senior roles at Evite.com and engineering positions at medical device company Enact Health Management and Kaman Aerospace. He earned an aerospace engineering PhD from Stanford University and a BA in Philosophy from Virginia Tech – an interesting path which took him from submarine acoustics to financial modeling as a venture capitalist.

Ian’s portfolio includes over a hundred early stage investments and he has served on over twenty boards. Seven of his investments have successfully exited via ‘M&A’ including SeaDragon Software, Quorum Systems, Nellix, Novus Packaging, and Ordinate. Two of his investments have been listed on Nasdaq: Genitope and PortalPlayer.

As a founding partner of three seed venture funds, Ian has raised $US65M and a further $US120M as a partner in an early stage venture fund. The Band of Angel’s Acorn Fund backs entrepreneurs with a strategy to build profitable companies or exit on the sole investment of the fund.

Highly active in the early-stage ecosystem in the US, Ian is a founding board member of the Angel Capital Association and is a member of the Young Venture Capitalists Association, as well the American Institute of Aeronautics and Astronautics.

He is author of a dozen technical publications, a former lecturer at the Center for Entrepreneurship and Technology at the University of California at Berkeley, and is a frequent speaker, lecturer, and commentator in Silicon Valley.

In this video from a series on the popular investment platform ‘Gust’ he talks about the angel experience and how angel investment offers entrepreneurs the opportunity to benefit not only from the capital, but also the intellectual investment of angel investors.

Register your place at Asian Business Angels Forum, Queenstown, New Zealand, October 14-15 2015, one the southern hemisphere’s largest international angel investor events, to meet Ian Sobieski in person. Seats are limited, act now. ABAF2015, NZ

Please follow and like us:

#ABAF15NZ Speaker – Allan May

Meet the speakers #ABAF15NZ – Allan May

The 2015 Asian Business Angel Forum is our country’s big opportunity to meet and build connections with some of the world’s most successful and insightful investors from around the world.

AANZ is pleased to welcome Allan May – Founder, Life Science Angels and General Partner, Emergent Medical Partners as one of its international line-up of thought-leaders.

Register-now

As a founder of Life Science Angels (LSA), focused solely on medical device and biotech startups, Allan has curated a group comprised of high net worth individuals who are veterans from the medical device or biotech fields in the US.

The group have, since 2005, invested over $35M in 32 early stage companies who have gained over $700M in follow-on funding. The LSA portfolio also boasts five favourable exits.

Allan’s experience spans founder, CEO, board member and Chairman roles on a number of early stage companies in life sciences – including Intella Interventional Systems, MAST Immunosystems, ImmuneTech, Athenagen (Comentis), Nanostim, nSpine, and BioMimedica. In 2007 Allan joined renowned inventor, entrepreneur and cardiac surgeon, Dr. Thomas Fogarty, in co-founding Emergent Medical Partners. EMP is a boutique venture fund focused on early stage medical device company creation and investing. It has made 25 investments to date with 4 successful exits, including eValve and Ardian.

In 2010, Allan was elected Chairman of the Board of the Kauffman Foundation’s Angel Capital Education Foundation, now known as the Angel Resource Institute. ARI is devoted to the promotion and study of angel investing.

A strong advocate for developing angel investing as a complex ecosystem of peer-to-peer support and mentorship and also the formalization of angel investment engines, Allan has been outspoken on the benefits early-stage investing to the growth of ecosystems. For instance in a 2011 piece for The Atlantic he goes so far as to say angels were key to ‘saving Silicon Valley’; operating as they do on the clear understanding “capitalism still works, and the higher the risk the higher the return”.

Allan began his academic career at Case Western Reserve University where he received his Juris Doctorate. He earned a Bachelor of Arts degree in 1969 from Kent State University and is a graduate of the Stanford Executive Program for Small Business. Allan now frequents conferences and government programs as a lecturer on trends and developments affecting investing in life science. He has co-chaired Singularity University’s Innovation and Entrepreneurship Track at its FutureMed Program and is a member of the editorial board of Elsevier Windhover’s In Vivo magazine.

Allan brings to New Zealand insights from his extensive background of involvement in negotiating mergers, acquisitions, strategic alliances and successfully completing transactions with both public and private companies.

Meet Allan along with New Zealand’s angel investment community and other thought leaders from over a dozen countries by securing your seat now at one the southern hemisphere’s largest international exclusive investor events Asian Business Angels Forum, Queenstown, New Zealand.

 ABAF2015, NZ

Please follow and like us:

#ABAF15NZ Speakers – Jayesh Parekh

Meet the speakers #ABAF15NZ – Jayesh Parekh

Queenstown, New Zealand, is gearing up for 2015’s Asian Business Angel Forum. The event runs from 14-16 October 2015 with an impressive line-up of business angels from all over the world.

Among the investment experts coming to New Zealand to share their knowledge and networks is managing partner of Jungle Ventures, Jayesh Parekh.

Register-now

Mr Parekh has accumulated an extensive portfolio of technology, media and social impact investments with over ten exit or acquisition events among them.

He is also well placed to provide attendees of #ABAF15NZ with an authoritative view on funds and the benefit of angel networks, incubators and accelerators as a partner in a wide range of early-stage business growth and investment vehicles including Jungle Ventures, 500 Startups and Mumbai Angels.

Jayesh is a Singapore citizen and lives there with his family where he is actively involved in the ecosystem. He is Chief Mentor at the Hub Singapore, an Entrepreneur-in-Residence at INSEAD, an Executive Advisor to NUS (National University of Singapore) Enterprise and a TiE (Tech In Asia) Charter Member. As a judge at TiE’s Startup arena in Jakarta in 2014, Tech in Asia’s biggest Startup Asia to date with 2,202 participants, Jayesh was on the judging panel coaching founders to clearly articulate their monetization strategies.

Drawing on his background as an engineer with a Bachelor’s degree in Electrical Engineering from MS University in Baroda, India, a Master’s degree in Electrical Engineering from the University of Texas at Austin, USA and over 12 years at IBM based in Houston and Singapore, he supplies valuable guidance around product believing “best of class product is extremely important and that means the user experience fits across all regions.”

Jayesh also works with existing businesses to help them apply a more entrepreneurial mindset and approach to their enterprises. He delivers in-company presentations and often facilitates deep discussions with sales and marketing and business development teams to help them embrace corporate entrepreneurship as a way to identify new business opportunities.

In his long list of achievements Jayesh counts being a co-founder of Sony Entertainment Television, a major network launched in collaboration with Sony Pictures Entertainment and his board membership of One Animation, Shemaroo, Milaap, and investment in Asvathaa (gaming & animation), Game Ventures (online gaming) and eBus (TV commercial digital distribution).

He is also a passionate advocate and investor in ventures which give back to the community with roles on the Boards of social enterprise focused ventures such as the Investment Committee of Aavishkaar India, which invests in enterprises active in the social infrastructure sector in rural and underserved India. He was on the board of SONG, a fund owned by George Soros which invests in SMEs in India that meet social objectives. He served on the Board of United Way International for six years and is a founder of ProPoor, a non-profit portal for Non-Governmental Organizations in South Asia, and now a service of CharityFocus.

You can follow Jayesh on Twitter and meet and hear from him in person, along with a host of angels from New Zealand’s angel investment community and the world at one the southern hemisphere’s largest angel investor events Asian Business Angels Forum, Queenstown, October 14-15. Seats are now very limited. Be quick to register yours. ABAF2015, NZ

Please follow and like us:

Lead Partners

NZTE NZVIF PWC

Expert Partner

AVID “FNZC.jpg”

AANZ Summit Sponsors

Callaghan Innovation “UniServices” Kiwinet “Spark”