Startup Genome and the Global Entrepreneurship Network Launch the Global Startup Ecosystem Report 2018

Released at the Global Entrepreneurship Congress (GEC) in Istanbul, GSER 2018 features strategic startup, investment and policy insights from over 10,000 founders in 60 ecosysytems – including New Zealand.

With insights ranging from the fast-growing dominance of ICT verticals to the filling of critical gaps in Success Factors both funding and startups, the Global Startup Ecosystems Report (GSER) 2018 continues to present thought-leadership and knowledge building driven by the world’s largest primary ecosystem research, Voice of the Entrepreneur. This is where we find out what it takes to build dynamic startup ecosystems with both local and global resonance and which cities around the world are doing it best.

Produced in partnership between Startup Genome and the Global Entrepreneurship Network (GEN) this year’s Global Startup Ecosystems Report launches at the Global Entrepreneurship Congress in Istanbul – signaling a strong commitment to advancing a greater understanding of startup ecosystems and the global network of capital and connections that drive them.

“We’ve now entered the Third Wave of innovation – where our global startup community is disrupting industries by combining technology with deep industry expertise. This is creating a potentially game-changing opportunity for smaller, less mature startup ecosystems that can now build out competitive advantage at a global level by focusing on their DNA and legacy strengths,” shares Startup Genome CEO and co-founder JF Gauthier.

A fitting occasion for the launch of this collaborative report, the Global Entrepreneurship Congress gathers thousands of entrepreneurs, investors, researchers, policymakers and other startup champions from more than 170 countries to identify new ways of helping founders start and scale new ventures around the world.

“Research in the field is vital to shaping the interventions necessary to empower entrepreneurs around the world,” said Jonathan Ortmans, president of the Global Entrepreneurship Network. “As thousands of startup champions gather this week to explore innovative approaches, efforts such as the Global Startup Ecosystem Report help us become better informed about what is needed.”

Incorporating data from Crunchbase and Orb Intelligence, as well as the voices of over 10,000 founders from 24 countries worldwide and counting – including some of New Zealand’s top startups like Flick Electric, Fuel 50 and Nyriad – GSER 2018 presents an incisive look at over 60 ecosystems. Through an analysis of startup output and legacy traits, it identifies the industries where each ecosystem has the most potential to build the vibrant economy for which it is uniquely positioned.

This year, GSER the report takes a close look at key sub-sectors such as Advanced Manufacturing & Robotics, Agtech, A.I., Big Data & Analytics, Life Sciences and Cybersecurity, as well as new technologies in education, health, advertising and finance. The sub-sectors in focus point towards imminent entrepreneurial revolutions. Thanks to SpaceX we may already have a car in space – but will we have greater diversity and value distribution on the ground and in our startup ecosystems? These are among key qualitative issues that GSER 2018 also looks at.

In the New Zealand ecosystem in particular, GSER provides a detailed look at the following subsectors: agtech and new food, health and life sciences and govtech.

Angel Association NZ has been delighted to partner with over a dozen ecosystem participants, including NZ Trade and Enterprise, Callaghan Innovation, the Ministry of Business Innovation and Employment, the tech and founder incubators, NZX and others to bring a wealth of insight to the New Zealand findings.

Commenting on the value of the report, outgoing AANZ Chair Marcel van den Assum said that not only did the report raise New Zealand’s profile with the 60+ other ecosystems also taking part but it provided insights into where we are best placed to focus our resources to enhance the impact of New Zealand startups and technology.

Download the full report here: www.startupgenome.com/report2018.

 

ABOUT US

The Angel Association of New Zealand (AANZ)

The Angel Association is an organisation that aims to increase the quantity, quality and success of angel investments in New Zealand and in doing so create a greater pool of capital for innovative start-up companies. It was established in 2008 to bring together New Zealand angels and early-stage funds. AANZ currently has 30 members representing over 700 individual angels associated with New Zealand’s key angel networks and funds.

Startup Genome
Startup Genome works to increase the success rate of startups and improve the performance of startup ecosystems globally. Fueled by the Voice of the Entrepreneur – the world’s largest primary research conducted with more than 10,000 startups annually – Startup Genome advises leaders of innovation ministries, agencies and organizations supporting startups. It brings data-driven, actionable insights, clarity and focus needed to produce more scale-ups, jobs and economic growth worldwide. Visit www.startupgenome.com for more and stay up to date on Twitter or Medium.

The Global Entrepreneurship Network

The Global Entrepreneurship Network operates a platform of programs in 170 countries aimed at making it easier for anyone, anywhere to start and scale a business. By fostering deeper cross border collaboration and initiatives between entrepreneurs, investors, researchers, policymakers and entrepreneurial support organizations, GEN works to fuel healthier start and scale ecosystems that create more jobs, educate individuals, accelerate innovation and strengthen economic growth. For more, visit www.genglobal.org and Follow GEN on Twitter.

ENDS

For interviews and further enquiries, please contact us:

Dinika Govender
Communications, Startup Genome
[email protected]

Jessica Wray Bradner

Communications, GEN
[email protected]

Suse Reynolds,

AANZ executive director
mob: 021 490 974 or email: [email protected]

Marcel van den Assum,

AANZ chair and 2015 Arch Angel
mob: 021 963 459 or email: [email protected]gelassociation.co.nz  

 

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Two New Angel Awards Announced

MIG Angels’ Dean Tilyard and PowerbyProxi recognised

In recognition of Angel Association New Zealand’s 10th Anniversary Summit two new awards have been announced to augment the Arch Angel Award which was first awarded in 2009 to Sir Stephen Tindall and yesterday awarded to Debra Hall.

The Puawaitanga Award recognises the founder and investor-director who best exemplify what can be achieved when committed people draw on their collective skills and experience. This award celebrates an angel-backed venture achieving world class success. This venture has excellent governance, a compelling business proposition and a well-defined strategy for exponential returns.

Puawaitanga – ‘best return on integrated goals’.

The Kotahitanga Award recognises those people in the angel community who have made an outstanding contribution to the industry. It acknowledges those who have selflessly given personal time and energy for a sustained period and contributed to the professionalism, profile and reputation of angel investment in New Zealand.

Kotahitanga – ‘unity and a shared sense of working together’.

The inaugural Puawaitanga Award has been presented to PowerbyProxi’s founder Fady Mishriki and investor-director, Movac partner David Beard. Movac were the first angel investors in the company after Fady and his business partner, Greg Cross founded the business in 2007 with the Icehouse becoming the first external shareholder joined in the following years by UniServices. Auckland-based IceAngels investors also contributed capital in later rounds alongside other investors including Evander Management. PowerbyProxi was recently acquired by Apple for an undisclosed sum.

In making the award, Angel Association Chair, Marcel van den Assum said Fady and Dave are shining examples of what great alignment can achieve.

“A consistent message in angel investment is the importance of founder and investor alignment. Both parties need to be committed to the same end-point.  This has clearly been the case with PowerbyProxi. From the outset, eight and a half years ago, both Fady and David were in sync on the end game; to generate stunning returns, financially for the investors and just as importantly for the New Zealand economy,” he said.

PowerbyProxi employs over 50 people and holds over 300 wireless charging related patents.

The first recipient of the Kotahitanga Award is MIG Angels founder, Dean Tilyard.

Dean founded MIG (Manawatu Investment Group) Angels in 2007. Since then the group has raised in excess of $20m for 19 technology based and largely agtech companies. Dean led the fund raising for two MIG Angels side-car funds, and oversees the investment committee to co-invest with MIG members. Dean was instrumental in the establishment of the Sprout Accelerator, which has 16 agtech alumni. Companies taking part in Sprout have gone on to triple their sales and raised $2m in funding. Dean was Treasurer of the Angel Association from its inception in 2008 until 2016.

“Dean is the kind of leader and influencer who has a tremendous impact on all those who work around him by leading powerfully and unobtrusively.”

“Dean has spent countless unpaid hours with founders and budding angels mentoring, encouraging and inspiring them all. He has also championed early stage investment to others on the periphery of angel investment; those whose support is vital to the successful growth of New Zealand’s startup ecosystem,” said Marcel.

–Ends–

For more information, please contact:

Suse Reynolds, AANZ executive director
mob: 021 490 974 or email: [email protected]

Marcel van den Assum, AANZ chair and 2015 Arch Angel
mob: 021 963 459 or email: [email protected]

The Angel Association of New Zealand (AANZ)
The Angel Association is an organisation that aims to increase the quantity, quality and success of angel investments in New Zealand and in doing so create a greater pool of capital for innovative start-up companies. It was established in 2008 to bring together New Zealand angels and early-stage funds. AANZ currently has 30 members representing over 700 individual angels associated with New Zealand’s key angel networks and funds. Recent NZVIF data revealed angels have invested more than $NZ484m in over 928 deals and 296 companies in the last 10 years. AANZ works closely with NZTE and Callaghan Innovation and a number of private sector partners including NZX, First NZ Capital, PWC, Avid Legal, AJ Park, KiwiNet, Uniservices and Spark Ventures. For more, please visit: www.angelassociation.co.nz

 

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Debra Hall named New Zealand Arch Angel 2017

One of New Zealand’s most ardent angel investors, Debra Hall, has been awarded the Angel Association of New Zealand’s (AANZ) prestigious Arch Angel Award at the 10th Anniversary NZ Angel Summit on Waiheke Island.

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 startup ecosystem

Debra has made many investments in early-stage companies and been an investor director for a number of these ventures. She has held governance roles with Auckland-based IceAngels, the Angel Association itself and is currently an Advisory Board member for the first Chinese founded angel investment group, Zino Ventures. In 2015 Debra received IceAngels “William H Payne, Active Angel Award”.

AANZ Chair and 2015 Arch Angel recipient, Marcel van den Assum, says Debra imbues all the qualities of a top-notch angel.

“She is not only an active investor, contributing money and the deep expertise she has from scaling and selling her own market research company, but Debra also genuinely cares about the founders she backs, providing personal and practical advice which is a vital part of the more holistic role angel investors play,” he said.

Marcel, who worked with Debra during her time on the AANZ Council, said her contribution to the angel investment in New Zealand is marked.

“The passion and energy she brings is extraordinary, whether it’s developing and delivering a specialised course for aspiring directors of angel-backed companies, or on the boards of companies she’s backed, advising entrepreneurs, making deals happen by bringing people together or cajoling and gathering data on our community, Debra has made a very real impact and lifted the professionalism, profile and reputation of angel investment in New Zealand.”

Andy Hamilton, recipient of the 2011 award, has known Debra since she began angel investing in 2007 and said she had been a dedicated and invaluable member of IceAngels, renowned not just for her deal making capability but also for the lively dinners she and her husband Peter have hosted over the years for dozens of international visitors.

Interviewed in Startup Young Company Finance Report’s October 2016 edition, Debra noted that she and Peter had heard about IceAngels through a connection who knew Andy Hamilton and subsequently received an introduction to the group.

“In those days, from the outside, it looked to me like a secret society,” Debra said. She subsequently discovered that wasn’t the case – “all angels are very welcoming of new members and in fact eager to get new angels on board,” she said.

“Peter and I invest together and we only invest in companies we both agree on. We’ve taken small and big investments across a diverse range of companies – from technical manufacturing, to biotech, to software businesses.”

It was in this article that Debra set out why she is so passionate about the role good governance plays in the success of angel-backed companies.

“Governance is often seen as an inconvenience or intrusion by founders, however an effective board is actually critical to their success. With many of these companies, we’re dealing with a team that has never run a business before, so experienced directors are not just bringing classic governance to the table, they’re bringing their contacts, business experience and willingness to take on risks – often for minimal remuneration,” Debra pointed out.

Debra received her award at the 10th Anniversary NZ Angel Summit, held at Cable Bay Winery on Waiheke Island 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.

South African born, Debra was that country’s first female metallurgical engineer. After immigrating to New Zealand, her career changed tack when she took on a job for a market research company that allowed her to work from home. She found a passion for the sector, leading her to establish the market research company Research Solutions in 1992. It grew into one of the country’s leading market research consultancies, and was sold to global market research giant, Synovate in 2007. She chaired the New Zealand Marketing Association for a number of years.

Former Arch Angel winners also 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 and current AANZ Chair, Marcel van den Assum.

–Ends–

For more information, please contact:

Suse Reynolds, AANZ executive director
mob: 021 490 974 or email: [email protected]

 

Marcel van den Assum, AANZ chair and 2015 Arch Angel
mob: 021 963 459 or email: [email protected]

 

The Angel Association of New Zealand (AANZ)
The Angel Association is an organisation that aims to increase the quantity, quality and success of angel investments in New Zealand and in doing so create a greater pool of capital for innovative start-up companies. It was established in 2008 to bring together New Zealand angels and early-stage funds. AANZ currently has 30 members representing over 700 individual angels associated with New Zealand’s key angel networks and funds. Recent NZVIF data revealed angels have invested more than $NZ484m in over 928 deals and 296 companies in the last 10 years. AANZ works closely with NZTE and Callaghan Innovation and a number of private sector partners including NZX, First NZ Capital, PWC, Avid Legal, AJ Park, KiwiNet, Uniservices and Spark Ventures. For more, please visit: www.angelassociation.co.nz

 

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Angel Investment Tracking Well – First Half Year Results

With the Angel Association to hold its 10th Anniversary Summit at the end of the week, first half year results show angels are investing at rates on a par with previous years and that the upwards trajectory of interest in the sector continues.

Reporting on the activity of its members tracked by the NZ Venture Investment Fund, Angel Association Chair Marcel van den Assum said $20.2m dollars was invested in 29 deals in the first six months of the year. Reflecting previous years, the split between new deals and follow-on funding was one third/two thirds.

Mr van den Assum went on to note that typically there is a substantial uplift in activity in the second half of the year.

“The level of deal flow being generated by accelerators such as Wellington’s Lightning Lab, the Manawatu’s Sprout and Auckland’s Flux together with the establishment of new networks this year such as Zino Ventures, Angel Investors Marlborough and Hawkes Bay Angels bodes well for another record year of investment,” said Mr van den Assum.

“When record keeping began in 2006, only 30 deals were done and $21m was invested. Annual investment has now exceeded $50m per annum for the last four years and grown by an average of $5m a year to reach nearly $70m in 2016,” he added.

“A decade into this endeavour it’s pleasing to see three angel-backed ventures deliver returns this year,” said Mr van den Assum.

PowerbyProxi was sold to Apple, Publons to US-based Clarivate and IMeasureU to UK-based Oxford Metrics.

This year’s 10th anniversary angel summit is being held back where it all started in 2007, on Waiheke Island. The focus will be on what is required to build on the success of the last decade which has seen almost $500m invested into nearly 1000 deals. Ten years ago there were just 4 angel networks with about 100 members. Today there are a dozen networks operating from Dunedin to Auckland with over 700 angels contributing capital, connections and expertise to about 100 ventures a year. All this activity has delivered hundreds of jobs and tens of millions of revenue for the country and is now beginning to generate the returns required to ensure the endeavour is sustainable.

–Ends–

For more information, please contact:

Suse Reynolds, AANZ executive director
mob: 021 490 974 or email: [email protected]

Marcel van den Assum, AANZ chair and 2015 Arch Angel
mob: 021 963 459 or email: [email protected]

The Angel Association of New Zealand (AANZ)
The Angel Association is an organisation that aims to increase the quantity, quality and success of angel investments in New Zealand and in doing so create a greater pool of capital for innovative start-up companies. It was established in 2008 to bring together New Zealand angels and early-stage funds. AANZ currently has 30 members representing over 700 individual angels associated with New Zealand’s key angel networks and funds. AANZ works closely with NZTE and Callaghan Innovation and a number of private sector partners including NZX, First NZ Capital, PWC, Avid Legal, AJ Park, KiwiNet, Uniservices and Spark Ventures. For more, please visit: www.angelassociation.co.nz

 

New Zealand Venture Investment Fund
The New Zealand Venture Investment Fund invests with venture capital funds and alongside angel investors to support New Zealand technology companies with start-up and growth capital. The NZVIF was established by the New Zealand government in 2002 to build a vibrant early stage investment market in New Zealand. Recent NZVIF data revealed angels have invested more than $NZ484m in over 928 deals and 296 companies in the last 10 years. NZVIF has $245m of funds under management which are invested through two vehicles: the $195m Venture Capital Fund of funds and the $50m Seed Co-investment Fund. All investments are made either through privately managed venture capital funds, or alongside experienced angel investors. For more please visit: www.nzvif.co.nz.

 

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Launch Taranaki and NZVIF to invest in local startups

The New Zealand Venture Investment Fund and Launch Taranaki, the New Plymouth-based angel investment fund, have formed a partnership to invest into start-up companies, primarily in Taranaki.

Launch Taranaki was formed last year.  The angel group has over 20 members, and is chaired by Ian Frame, who previously ran Rangatira, a Wellington-based private equity fund, for over a decade.  The government-owned NZVIF partners with angel groups and investors through its Seed Fund to co-invest into young startups.

Mr Frame said the partnership with NZVIF’s Seed Co-Investment Fund – or SCIF as it is known – will bring more investment into innovative companies in the Taranaki region.

Read more

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MEDIA RELEASE: AANZ supports Government Changes to Startup Investment

Angel Association NZ welcomes the changes the Government has announced today to the Seed Co-Investment Fund mandate outlined in SCIF 2.0.

Early stage investment has established itself as fundamental to New Zealand’s future economic and social wellbeing. It is a key contributor to the growth of New Zealand’s innovation ecosystem.

“Recognizing that building momentum is the first step in generating value, the changes to the New Zealand Investment Fund’s seed co-investment reflect the maturing of the early stage investment industry in New Zealand,” said Angel Association Chair, Marcel van den Assum.

“As an industry we are moving from prioritizing the number of deals we do, to prioritizing the value of the ventures we have invested in. We are pleased to see the investment cap lifted from $750,000 to $1.5m; doubling down on companies that are performing improves the odds of a rewarding return.”

Mr van den Assum also added that it was good to see NZVIF sending a clear message about the importance of well executed due diligence and active investor engagement.

“Quality due diligence improves the odds of success,” he said noting that it was also critical that ‘in-flight due diligence’ was regularly carried out to ensure the funds are being deployed effectively and strategically with a view to the return on that investment.

“As angel investors we have limited capital and time. We must be more diligent in our assessment both of a venture’s ability to scale and in assessing which companies we will retain in our portfolios,” he noted.

Angel Association New Zealand also welcomed the announcement as an indication of the Government’s ongoing commitment to the early stage ecosystem.

“Creating a self-sustaining, innovation ecosystem is a 20-30 year exercise and it’s pleasing to see the Government continue to support the early stage kiwi companies who are part it,” he concluded.

Ends

For more information, please contact:

Suse Reynolds, AANZ executive director
mob: 021 490 974 or email: [email protected]

Marcel van den Assum, AANZ chair and 2015 Arch Angel
mob: 021 963 459 or email: [email protected]

The Angel Association of New Zealand (AANZ)

The Angel Association is an organisation that aims to increase the quantity, quality and success of angel investments in New Zealand and in doing so create a greater pool of capital for innovative start-up companies. It was established in 2008 to bring together New Zealand angels and early-stage funds. AANZ currently has 27 members representing over 600 individual angels associated with New Zealand’s key angel networks and funds. Recent NZ Venture Investment Fund data revealed angels have invested more than $NZ437m in over 928 deals and 296 companies in the last 10 years. For more, please visit: www.angelassociation.co.nz

 

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Angel funds invest record $69m in 2016

Angel networks and funds invested a record $69 million into young New Zealand companies in 2016 – a 13 percent increase on the previous record set in 2015 – New Zealand Venture Investment Fund investment director Bridget Unsworth said today.

Releasing the latest Young Company Finance Index, Bridget Unsworth said the second half of 2016 was an especially strong period with investment of $46.1 million, following the trend in recent years which has seen surges of investment activity in the second half of the year.

“This is an excellent result.  The continued strong growth of angel fund investing was notable for the fact that while the transaction volume dropped by 15 percent, the amount invested by angel groups and funds increased by 13 percent.

“This indicates angel funds are continuing to back the winners for follow-on rounds. While it means fewer portfolio companies get funded, the high performing ones are able to close larger sized capital rounds. We see this as healthy development.”

The new companies funded by angels were at a very similar levels in 2015 (40) and 2016 (41), meaning the pipeline is steady.

Eight start-up companies raised investment rounds of more than $1.5 million which together totalled $20.4 million.  This accounted for 44 percent of total investment amount in the second half of 2016. Five companies out of this eight are software technology companies.

Chair of the Angel Association of New Zealand Marcel van den Assum said it is great to see the early stage investment community continuing to sustain a solid level of investment.

“Annual investment has exceeded $50 million for the last four years and grown by an average of $5 million per annum to reach nearly $70 million last year.

“This is a highly credible performance for a country where our startup ecosystem is still only a decade old and our early stage capital markets are still maturing. A concerted NZ Inc approach is required if we are to leverage the outcomes we aspire to see generated from our investment, and to sustain the performance of our startup ecosystem.

“In this respect it is good to see more money going into fewer deals and businesses attracting significant follow-on investment. This suggests a tighter focus by investors on those companies which are performing.  It will give the deepening growth capital providers in New Zealand – venture capitalists, corporate venture and strategic investors – more confidence to invest in angel-backed companies.”

The $69 million was invested across 112 deals compared with $61.2 million across 132 deals in 2015.  Cumulatively, $483.7 million has now been invested into young companies by angel groups since the Young Company Finance Index began measuring activity in 2006.

2016 saw $37.8 million investment into the software and services sector, which continued to be very attractive to investors.  Pharmaceuticals was the next most attractive investment sector in 2016, receiving $8.9 million of investment, up from $3.6 million in the previous year.

Click here to download the latest issue of StartUp.

Media contacts
NZVIF: David Lewis, m: 021 976 119, [email protected]

Angel Association: Suse Reynolds, m: 021 490 974, [email protected]

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Global Survey Rates NZ Start-up Ecosystem

New Zealand start-ups have the highest percentage of offshore customers when measured against their counterparts from 50 other ecosystems including New York, Moscow, Beijing and London.

For the first time over 100 kiwi start-ups have taken part in the Compass Start-up Genome’s Ecosystem Ranking Survey. The Compass Start-up Genome project team is based in San Francisco and benchmarks start-up ecosystems from around the world.

The 2016 survey results have just been released at the Global Entrepreneurship Congress in Johannesburg, South Africa.

Commenting on New Zealand’s performance AANZ Chair, Marcel van den Assum said he was pleased to see “NZ Inc” on the world map.

“Start-up eco-system inputs such as volume of deals, number of angel investors and investment levels have grown consistently, and position New Zealand as a highly credible performer on a per capita basis,” said Mr van den Assum.

“I am particularly pleased to see our founders and start-ups leading the charge when it comes to engaging globally. To generate the level of value we hope our start-ups will deliver for New Zealand and their shareholders, we have to think and sell globally from day one. And our companies obviously are.”

New Zealand start-ups also ranked among the highest, at 5th, when it comes to positively interacting with corporates.

“The extent to which our companies are garnering interest from corporates bodes well for their success. New businesses need customers and investment and corporates are a great source of both,” said van den Assum.

Another important insight revealed by the survey is New Zealand entrepreneurs’ lack of experience. Less than half of our start-up growth teams have had more than two years previous entrepreneurial experience.

While this concerning, Mr van den Assum said this finding should provide a high degree of confidence to those supporting the growth and professional development of founders and start-ups.

“The challenge for New Zealand is to apply higher levels of capability, capital and connections to those businesses that have real potential to scale and deliver a return on investment to all eco-system participants. This is fundamental to longer-term sustainability. Those running start-up weekends, government incubation and accelerator programmes and the Seed Co-Investment Fund now have a clear evidence that these programmes are vital and much needed,” he said.

The survey was led by the Angel Association NZ and carried out with support from NZX, New Zealand Trade and Enterprise, New Zealand Venture Investment Fund, Ministry of Business Innovation and Employment and Callaghan Innovation.

“Lifting and supporting our high growth tech companies requires a NZ Inc approach so we are pleased that acquiring this data reflected that,” said Mr van den Assum.

 

For more information, please contact:

Suse Reynolds, AANZ executive director
mob: 021 490 974 or email: [email protected]

Marcel van den Assum, AANZ chair and 2015 Arch Angel
mob: 021 963 459 or email: [email protected]

The Angel Association of New Zealand (AANZ)

The Angel Association is an organisation that aims to increase the quantity, quality and success of angel investments in New Zealand and in doing so create a greater pool of capital for innovative start-up companies. It was established in 2008 to bring together New Zealand angels and early-stage funds. AANZ currently has 27 members representing over 600 individual angels associated with New Zealand’s key angel networks and funds. Recent NZ Venture Investment Fund data revealed angels have invested more than $NZ437m in over 928 deals and 296 companies in the last 10 years. For more, please visit: www.angelassociation.co.nz

The Compass Start-up Genome

The Global Startup Ecosystem Ranking is the definitive resource for founders, investors and other leaders to understand entrepreneurial vibrancy in 50+ leading cities. It was been published at the Global Entrepreneurship Congress 2017 in Johannesburg, South Africa last week in front of policymakers from 160+ countries. It will be read by approximately 500,000 people (25% founders, 25% investors, 25% policy makers, 25% other). A full copy of the report can be found at  https://www.thunderclap.it/projects/52927-startup-ecosystem-report-2017?locale=en

New Zealand Venture Investment Fund

The New Zealand Venture Investment Fund invests with venture capital funds and alongside angel investors to support New Zealand technology companies with start-up and growth capital. The NZVIF was established by the New Zealand government in 2002 to build a vibrant early stage investment market in New Zealand. We have $300 million of funds under management which are invested through two vehicles: the $250 million Venture Capital Fund of funds and the $50 million Seed Co-investment Fund. All our investments are made either through privately managed venture capital funds, or alongside experienced angel investors, who we partner with to invest into New Zealand-originated, high-growth potential companies.

Callaghan Innovation

Callaghan Innovation is the government’s business innovation agency. Its purpose is to grow New Zealand’s economy by helping businesses succeed through technology. It delivers innovation services to businesses and build New Zealand’s innovation capability, including supporting a network of incubators and accelerators across New Zealand. It also provides technical and scientific expertise, impartial advice, skills development, access to industry networks, and grant funding. www.callaghaninnovation.govt.nz

 

 

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More money for entrepreneurial women

A government-backed investment fund has gone into partnership with ArcAngels, a group of private individuals focused on investing in female-led business start-ups.
The New Zealand Venture Investment Fund (NZVIF) will invest dollar for dollar alongside ArcAngels through its Seed Co-Investment Fund (SCIF).
ArcAngels chairwoman Cecilia Tarrant, a director of Fletcher Building and former Morgan Stanley managing director, said it approached NZVIF to form the partnership on the back of other relationships the fund already had with angel networks around the country.
Tarrant said the deal means it would have access to more capital than the size of its membership suggested.
“That makes us more attractive for entrepreneurs.”
ArcAngels was launched in 2014 and has around 30 members although Tarrant said it hoped that would grow to around 40 by mid-year.
So far it has invested $1.6 million in eight transactions including into Pictor, Fuel 50, Acuite and Engender.
Tarrant said with the NZVIF partnership it would hope to increase its investments to around 10 per year both through new companies and follow-up investments.
NZVIF investment director Bridget Unsworth said the ArcAngel partnership was the 17th it had entered into through its SCIF.
To date NZVIF and its angel partners had co-invested around $142m into more than 150 companies.
Unsworth said the ArcAngel partnership would double the capital available to companies.
“The past year has seen continued healthy investment activity across New Zealand with more than $60 million invested by angel funds and groups.
“There is a healthy level of syndication of investments among different angel groups meaning they are likely to invest in opportunities throughout New Zealand. Early stage investing is a high-risk investment class and so diversification is important.”
Tarrant said around one-third of start-up companies in New Zealand were led by women or had a major female component but the number of female-led companies which attracted investment was lower.
At the same time the number of women angel investors was also lower.
Tarrant said the group hoped to replicate the success of the New York-based, women-led angel group, Golden Seeds, which has invested more than US$80m ($114m) in more than 76 women-led companies.
“Our principal aim is to make successful investments. But we also want to empower more women entrepreneurs, strengthen their competitiveness and maximise the success of New Zealand’s small business engine for greater economic growth in the long term.
“Many of our members are experienced angel investors with the capacity and capability to be able to provide mentoring and ongoing support to the female-led ventures the group invests into.”
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Theresa Gattung Venture Capital fund

ArcAngels and Angel Association New Zealand today welcomed the launch of Theresa Gattung’s new Venture Capital fund which aims to raise capital from women, for women entrepreneurs.

“Boosting the pool of capital for entrepreneurs is vital for New Zealand’s ecosystem of start ups to grow,” said Cecilia Tarrant, Chair of ArcAngels, a New Zealand based angel organisation focused on funding women entrepreneurs.

“As an organisation, focused on women-founders, we are delighted to hear Theresa Gattung, one of New Zealand’s preeminent business leaders has launched an initiative to fund women entrepreneurs, supported by women. Having a Venture Capital fund will help expand the capital and mentorship female entrepreneurs need to develop their businesses,” Tarrant said.

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Movac Fund 4 reaches first close at $105 million

MEDIA RELEASE

Movac Fund 4 reaches first close at $105 million

Movac Fund 4 has raised $105 million to invest in the next generation of iconic Kiwi technology companies.

The Fund is underpinned by $75m in investment commitments from institutional investors including Ngāi Tahu Holdings, with the balance coming from the New Zealand Venture Investment Fund, leading New Zealand family offices, community trusts, and private investors.

Movac Fund 4 will be investing in established New Zealand technology companies that are seeking capital to accelerate their growth.  These are companies with an established track-record of sales, a team in place to grow the business, and the ambition and potential to scale their business internationally.  This is a later stage fund than Movac’s previous funds.

Phil McCaw, Movac Managing Partner, commented: “We are really encouraged by the commitments from all of our investors, and in particular our new cornerstone investors who have recognised the significant investment opportunity that exists in the New Zealand technology sector right now.”

“Importantly, we have a strong pipeline of potential investments for Movac Fund 4.  We have already been meeting with and conducting due diligence on various opportunities, and are very impressed by the quality of the companies that we’re seeing.  We anticipate that we will make Fund 4’s first investments prior to Christmas.”

Ngāi Tahu Holdings Chief Executive, Mike Sang, commented: “Ngāi Tahu Holdings is excited about the addition of Movac Fund 4 to our portfolio.  We are looking forward to our new partnership with the Movac team and the added diversity the investment brings us from its focus on investing growth capital in the technology sector.”

Mr McCaw added: “As a team, we have 55 years of collective investment experience and we believe that we are uniquely placed to invest in and help accelerate New Zealand technology companies.  Our Fund 4 investors include a number of highly successful founders and business builders, experienced investors, as well as family offices and investment funds.  We also have a number of investor migrants investing in Fund 4.  We would like to thank them for their commitments, and look forward to working with them to grow the next wave of iconic Kiwi companies and delivering an outstanding investment return.”

Movac Fund 4 remains open for eligible investors until its final close in April 2017.

ENDS
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MEDIA RELEASE: Angel Association commends initiatives like AngelEquity

The Angel Association today welcomed the launch of AngelEquity, a new equity crowd-funding platform leveraging deals from New Zealand’s formal angel networks such as AngelHQ, Ice Angels and Enterprise Angels.

“Early stage, high growth companies are always looking for capital. Without capital the growth path is exponentially slower,” said Suse Reynolds, AANZ Executive Director.

The Angel Association exists to support those investing in these companies and welcomes any initiatives to help broaden and deepen the pool of capital available and raise the profile of the ventures they are funding.

Angel Association members include the networks or clubs, early stage funds, investor-led tech incubators and equity crowd funding platforms.

Suse Reynolds said she believed there is still plenty of room for growth and specialisation in this end of the capital markets.

Early stage, high growth companies are highly risky investment prospects but they are absolutely vital for NZ’s future economic and social wellbeing. The companies our members are backing are the Xero’s, F&P Healthcare companies of the future.

In order to give these companies the best chance of success what they need, along with the capital, is the exposure and support to the expertise and connections the capital can help deliver.  AngelEquity provides a link between the angel networks and individual high networth investors improving the prospect of those synergies being created.

–Ends–

For more information, please contact:

Suse Reynolds, AANZ executive director on 021 490 974 or [email protected]

The Angel Association of New Zealand (AANZ)

The Angel Association is an organisation that aims to increase the quantity, quality and success of angel investments in New Zealand and in doing so create a greater pool of capital for innovative start-up companies. It was established in 2008 to bring together New Zealand angels and early stage funds; to support the angel networks and help create new networks; to promote the growth of angel investment in New Zealand by encouraging and educating entrepreneurs, new angel investors and angel groups; and to ensure the ongoing success of the angel movement through developing industry strategy, encouraging collaboration and educating the wider New Zealand public about the importance of angel investing in growing our economy.  AANZ currently has 20 members representing more than 550 individual angels associated with New Zealand’s key angel networks and funds. Recent NZ Venture Investment Fund data revealed angels have invested more than $NZ438 million in over 680 deals in the last 9 years. For more, please visit: www.angelassociation.co.nz

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Angel funds invest over $60m in 2015

Angel networks and funds invested a record $61.2 million into 94 young New Zealand companies in 2015 – a 9 percent increase on the previous record set in 2014, New Zealand Venture Investment Fund investment director Chris Twiss said today.

Releasing the latest Young Company Finance Index, Chris Twiss said New Zealand now has a strong core of investors involved in angel networks and funds which are driving the continued growth of investment into start-ups.

“The last year was noteworthy not just for the high level of investment – hitting over $60 million for the 2182047.jpgfirst time – but also that we are now seeing angel-backed companies successfully raising capital from overseas investors – including venture capital firms, angel groups and equity crowdfunding.

“That indicates that New Zealand is increasingly on the radar for international investors looking for opportunities.  Offshore investment brings capital and access to networks and markets, and widens the shareholder base for companies.

“While the activity is at healthy levels, significantly more capital is needed to ensure that more New Zealand companies can become internationally competitive companies of scale.  There is also a lot more to do to develop and broaden the investor base in New Zealand, particularly outside the main centres.”

NZ Angel Association chair Marcel van den Assum said that it is particularly pleasing to see the level at which ventures were engaging overseas and raising funds offshore reflected in the recent data.

“Four companies raised $7.2 million from overseas venture capital firms through series A and B rounds and three companies raised $7 million through overseas angel networks.  The market for capital is global and these results illustrate that New Zealand companies are internationally competitive.

“Another feature to note was that more than two-thirds of the investment into our companies last year was follow-on investment. Our market is beginning to mature. We’ve been at this for nearly ten years and we need to focus increasingly on outcomes, driving for the investment returns required of angel investment.

“The high level of activity mirrors what the Angel Association is seeing in terms of interest and growth in membership. My own network, Angel HQ in Wellington, has doubled its membership in the last 18 months which is heartening.

“We need to bear in mind that the Young Company Finance data is an indicative one – and does not capture much of the investment by individuals and others outside the formal angel networks and funds. There is a great deal of activity not captured in these figures.”

Chris Twiss said the $61.2 million was invested into the 94 companies across 132 deals (also a record) compared with $56.4 million across 119 deals in 2014.  Cumulatively, $414.7 million has now been invested into young companies by angel groups since the Young Company Finance Index began measuring activity in 2006.

2015 saw $39.4 million investment into the software and services sector, which was a significant increase on the $26.2 million invested into software companies in 2014, and comprised over 60 percent of all angel fund investment over 2015.

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Click here to read the latest issue of Startup.

Media contacts:

NZVIF: David Lewis, m: 021 976 119, [email protected]

Angel Association: Suse Reynolds, m: 021 490 974, [email protected]

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AANZ backs NZVIF

“Without a thriving early stage ecosystem,
New Zealand simply has no future”

Responding to the release this morning of the New Zealand Venture Investment Fund (NZVIF) Investment Report and suggestions the future of the Fund is in doubt, Marcel van den Assum, chairman of the Angel Association of New Zealand (AANZ), encouraged the government to stay the course.

“Building an early stage capital ecosystem and generating returns from the ventures receiving funding requires fortitude and commitment, and without a thriving early stage ecosystem, New Zealand simply has no future.”

Van den Assum, the 2015 Arch Angel award winner for his support and encouragement of Kiwi entrepreneurs, early stage companies and early stage investors, noted the government’s original concept was for a 25-year early stage investment programme.

It’s important the programme stays true to the original aim to build a strong and professional early stage venture capital community, he said. “It’s also important the Fund’s portfolio of ventures are managed to provide the best possible opportunity for the returns investors are looking for.”

Van den Assum said he is supportive of NZVIF taking a more active approach to managing what is a very valuable portfolio. In this respect and commenting on the Investment Report itself, van den Assum said it was still early days. The bulk of the Seed Co-investment portfolio had been generated in just the last two-to-three years.

The AANZ works closely with its members to raise awareness about the importance of portfolio management and how best to support their portfolio companies to achieve the sorts of returns expected for the higher levels of risk associated with earlier stage investing. NZVIF is a key support partner in sharing these risks and the associated rewards, he said.

And by any measures the leverage generated from the government’s investment through NZVIF to date was stunning, said van den Assum. “Putting $147 million in to generate $1.7 billion is impressive no matter how you look at it.”

And it’s not leverage just in financial terms, he added. “The country’s angel investors don’t just share the financial risk with the government, they bring substantial capability, experience and international connections to our young companies.”

Van den Assum said building and supporting early stage, high growth companies required ongoing commitment from government, professional services providers and investors. “No one group can do this alone. All partners and stakeholders need to commit fully and for the long term for us generate the socio-economic goals we are all seeking for the future of our country.”

–Ends–

For more information, please contact:

Marcel van den Assum, AANZ chair on mob: 021 963 459 or email: [email protected]

Suse Reynolds, AANZ executive director on mob: 021 490 974 or email: [email protected]

The Angel Association of New Zealand (AANZ)

The Angel Association is an organisation that aims to increase the quantity, quality and success of angel investments in New Zealand and in doing so create a greater pool of capital for innovative start-up companies. It was established in 2008 to bring together New Zealand angels and early stage funds; to support the angel networks and help create new networks; to promote the growth of angel investment in New Zealand by encouraging and educating entrepreneurs, new angel investors and angel groups; and to ensure the ongoing success of the angel movement through developing industry strategy, encouraging collaboration and educating the wider New Zealand public about the importance of angel investing in growing our economy.  AANZ currently has 14 members representing more than 650 individual angels associated with New Zealand’s key angel networks and funds. Recent NZ Venture Investment Fund data revealed angels have invested more than $NZ370 million in over 640 deals in the last 8 years. For more, please visit: www.angelassociation.co.nz

 

NZVIF

Start-up companies need capital to grow

The NZVIF was established by the New Zealand government in 2002 to build a vibrant early stage investment market in New Zealand. It has $300 million of funds under management which are invested through two vehicles: the $260 million Venture Capital Fund of funds; and the $40 million Seed Co-investment Fund.

All its investments are made either through privately managed venture capital funds, or alongside experienced angel investors, who it partners with to invest into New Zealand-originated, high-growth potential companies.

It is based in Auckland and governed by a private sector board of directors who provide oversight to its investment management team. It also plays an active role in market development, alongside investors and the New Zealand Private Equity & Venture Capital Association and the Angel Association New Zealand.

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Marcel van den Assum named as New Zealand Arch Angel 2015

Marcel van den Assum, the current chair of the Angel Association of New Zealand (AANZ) has been awarded the prestigious Arch Angel Award at the 2015 combined Angel Summit and Asian Business Angels Forum (ABAF) in Queenstown.

The Arch Angel Award is the highest honour New Zealand’s angel investment community can bestow. It recognises someone who has steadfastly championed the cause of angel investment and the investors who are willing to give a significant amount of time and money to help those start-ups and early stage companies, and particularly the entrepreneurs who risk all to establish those companies, to reach their potential.

The Committee deciding the award (comprised of past Arch Angel awardees) noted Marcel has not only been a particularly active angel investor but has taken a leading role in the governance of a number of angel investee companies, distinguishing himself with his widely acknowledged assistance in the Green Button exit last year.

“However, it is his contribution to the administration and promotion of New Zealand’s angel investment world that was key to Marcel becoming this year’s Arch Angel,” says 2014 New Zealand Arch Angel and former AANZ chair Ray Thomson. “Not only has he been heavily involved in the development of the Wellington-based Angel HQ group, which was instrumental in founding New Zealand’s first startup accelerator Lightning Lab, but he has generously given his time to the development of New Zealand’s angel community, serving two years as deputy chair and then, for the last two years, chair of the AANZ.”

Marcel was presented with this year’s award in front of more than 170 angels, including 50 representatives from overseas, in the first event of its kind in New Zealand combining the eighth annual Angel Summit with ABAF.

Andy Hamilton, chief executive of Auckland’s angel, startup and business education hub, the Icehouse, and another former Arch Angel, says giving this year’s award to Marcel in front of so many national and international angels was fitting as Marcel has always strived to help build overseas connections to help our startups succeed. “Like all business angels, Marcel is completely dedicated to helping entrepreneurs achieve their potential and to do that we need to build international connections to provide the capital and connections our young businesses need to compete in a global marketplace.”

Marcel is AANZ chair, a professional director and an angel investor. He serves on the boards of Flick, Voco, Simplhealth, Yonix, CropX and the Wellington-based angel group AngelHQ. He was an investor in and chair of GreenButton, a successful angel-backed company that was acquired by Microsoft in 2014. He is a founding investor in Lightning Lab, a member of the GD1 (Global from Day one) investment committee, and he holds a number of advisory board positions with private and public sector entities. Prior to donning his wings, Marcel was CIO of Fonterra and managing principal of Unisys New Zealand.

Former Arch Angel winners include Phil McCaw, managing partner of investment firm Movac; The Warehouse founder and long-time angel investor Stephen Tindall; Andy Hamilton, chief executive of Auckland-based incubator and business educator The Icehouse; US super angel Bill Payne, and last year’s awardee veteran angel investor Dr Ray Thomson.

For more information, please contact:

Suse Reynolds, AANZ executive director, on mob: 021 490 974 or email: [email protected]

Dr Ray Thomson, former AANZ chair and 2014 Arch Angel, on mob: 021 646483 or email: [email protected]

The Angel Association of New Zealand (AANZ)

The Angel Association is an organisation that aims to increase the quantity, quality and success of angel investments in New Zealand and in doing so create a greater pool of capital for innovative start-up companies. It was established in 2008 to bring together New Zealand angels and early stage funds; to support the angel networks and help create new networks; to promote the growth of angel investment in New Zealand by encouraging and educating entrepreneurs, new angel investors and angel groups; and to ensure the ongoing success of the angel movement through developing industry strategy, encouraging collaboration and educating the wider New Zealand public about the importance of angel investing in growing our economy.  AANZ currently has 14 members representing more than 650 individual angels associated with New Zealand’s key angel networks and funds. Recent NZ Venture Investment Fund data revealed angels have invested more than $NZ370 million in over 640 deals in the last 8 years. For more, please visit: www.angelassociation.co.nz

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Building investment in New Zealand’s future

This year New Zealand is hosting the Asian Business Angels Forum, combining it with its own Angel Summit to strengthen ties, build alliances and make it possible for our entrepreneurs to have the cash and the connections they need to become New Zealand’s businesses of tomorrow.

On October 14th to October 16th 2015, in the stunning surrounds of Queenstown, alliances will be forged and best practices shared at the combined eighth annual New Zealand Angel Summit and the Asian Business Angels Forum (ABAF).

More than 150 angels, including 50 representatives from about a dozen countries, are expected at the event. All are dedicated to helping young businesses achieve their potential by building the networks they need to thrive in today’s global world and providing the capital they need to compete.

“Having this many investors visit with an appetite for early stage entrepreneurial ventures rather than property, and from such a range of countries is unique, if not a first for New Zealand,” says Marcel van den Assum, chair of the New Zealand Angel Association (AANZ).

“Angels invest their own ‘courageous capital’ in high growth startups. They are largely motivated by the desire to ‘give back’ and support their local economies. It’s not a financially rational endeavour because on a deal-by-deal basis angels are more likely to lose their money than not. So it’s a portfolio game where, both personally and from a wider economic benefit perspective, investors plant a lot of small seedlings to grow the giants in the forest.”

That’s why building alliances with other angels nationally and overseas is so important as it opens up a wealth of educational and experiential talent for the investee entrepreneurs and helps spread the risks and diversify angel portfolios, says van den Assum.

Given the tie-up with ABAF, the theme of this year’s Summit is Doing Business Together.

The summit kicks off with a a New Zealand Trade & Enterprise (NZTE) hosted technology showcase where 15 ventures, most of them angel-backed, will pitch to the gathered national and international angels on the Wednesday evening.

“While it will be terrific if some of the inbound visitors invest in these companies, the real value is in building an international network,” says van den Assum. “Angels are collaborative by nature. And without doubt the New Zealand angel-backed success stories have benefited from relationships built with prominent US angels over a number of years, which we are now extending into Asia.”

Building a global business from New Zealand is challenging, says van den Assum. “It’s a bit like climbing Everest – you need a good team behind you. A connected international network of support is critical to their success and that is what ABAF is all about: connecting Kiwi entrepreneurs and angel investors with angels in other places where we want and need to do business.”

For more information, please contact:

Marcel van den Assum, AANZ Chair, on mob: 021 963 459 or email: [email protected]; or

Suse Reynolds, AANZ Executive Director, on mob: 021 490 974 or email: [email protected]

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Angel Association backs investor migrant rule changes

MEDIA STATEMENT

14 September 2015

Angel Association’s executive director Suse Reynolds says that changing investor migrant rules to direct a portion of investor migrant capital into angel, venture capital or private equity funds would be a terrific boost for early stage companies.

“We have seen considerable growth in the early stage investment sector over the past decade.  This has helped the development of a growing number of promising high growth companies.

“The lack of a meaningful pool of capital remains a key constraint.  If that pool was to be increased, we would have the capacity to be able to deploy greater levels of capital into startup and emerging growth companies.

“If wealthy migrants were required to invest into the growth areas of our economy, it will bring the New Zealand rules into line with what is happening in other developed countries.  Early stage investing is a long-term investment, so it will appeal to migrants who have a long-term commitment to shifting to New Zealand and investing here.

“It provides a powerful mechanism to integrate migrants into New Zealand society as early stage investment is a very collaborative affair. It’s not just the capital but the networks and skills the providers of that capital bring to the table.

“Some of the angel community’s most active investors and contributors are migrants – such as Trevor Dickinson, an active investor with AngelHQ in Wellington, who is from the UK and Dave Moskovitz, an immigrant from the US, who set up Webfund.  These new rules will appeal to angels who are interested in migrating to New Zealand.”

ENDS

For more information contact AANZ Executive Director, Suse Reynolds on 021 490 974 or [email protected]

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Angels flock to networks

AANZ_G+_Tile

AANZ Media release: 1 May 2015

The number of angel investors who have joined networks and funds has risen dramatically in the past two years, says the Angel Association of New Zealand Executive Director Suse Reynolds.

“While it’s not easy to be definitive about these numbers we estimate the number of eligible angel investors represented by our members has grown from around 370 to 730 in the past two years.  Interest in this asset class is showing growth worldwide and in New Zealand this has coincided with a campaign we have been running to attract new investors.

“We are thrilled with the impact this has had. New activity and networks are emerging from one end of the country to the other – in Northland, Bay of Plenty and Southland, in addition to the major metropolitan centres.

“This growth in investor numbers is helping to fuel the increase in investment activity.  This year angel networks and funds recorded their second consecutive year of more than $50 million of investment. The level of annual investment is almost triple what it was a decade ago.

“Having more angel investors participating in deals is good for the sector. It helps active angels diversify their portfolios reducing the risk associated with angel investment. If there are 10 angel investors contributing to a $250,000 investment in a start-up rather than five, then each investor’s contribution is smaller and they can spread their capital across wider portfolios, thereby increasing the potential for return on investment and giving them more capital to put in other startups.

Last year particularly was a fabulous year in early stage investment in New Zealand with some impressive statistics about the number of deals done and money invested, says Suse. “What’s really exciting is that across the country the dramatic increase in our capability and capacity in the last year means more high-growth, startup companies having a much better chance of accessing much needed capital.

“We are very aware our data does not tell the full story as it is only representative our members’ activity. We also applaud and champion the large number of early stage investors outside this community, such as those launching and investing through crowd funding platforms and others who prefer to operate more independently.

“One of the most inspiring aspects of angel investment is that studies show that the majority of net job growth in the economy comes from new companies. So angels are doing great things for the economic and social development of their communities.”

2015 is shaping up to be even bigger than last year, says Suse. “Canterbury Angels are now formally constituted and have held their first investment evening and. “Angels of the North” held their first event just before Christmas in Whangarei, which included a taste of what the region has to offer in early stage investment.

“Our aim is to grow numbers to more than 1000 angels and we’re well on the way to doing that, making New Zealand a really exciting place to be an entrepreneur or an early stage investor.”

 Media contact:

Angel Association: Suse Reynolds  021 490 974 [email protected]

Download media release pdf

ABAF_register

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Creating our own Silicon Valley

There are so many components in successfully scaling great tech ventures. NZVIF’s Franceska Banga identifies a number of them in this article where she compares Silicon Valley with NZ. Essentially we all have a role to play!

Silicon Valley. Rightly or wrongly it’s the totem pole by which countries judge their transition to a more technology-based economy. But while many want to create the next Silicon Valley, replicating its confluence of factors is not easily done.

There are some features which helped create and continue to make Silicon Valley unique. It helps, for a start, having nearby two top universities – Stanford and Berkeley – with Stanford’s famed electrical engineering department especially important. So, too, does having huge pools of investment capital nearby.

But what might surprise many about this bastion of private enterprise is that it grew out of a long-term partnership with private enterprise supported by decades of US Government contracts and subsidies.

Its 60-plus years of growth has seen three technological waves.

Post World War II, federal Government money to develop new defence and aeronautical technology established the valley’s foundation and the first wave.

Darpa (Defence Advanced Research Projects Agency), created in 1958, is credited with playing a significant role in the development of the earliest version of the internet.

From that base came the second superconductor and PC wave of the 1970s and ’80s, followed by the internet, social and mobile media technological wave since the mid- 1990s.

The venture capital funds, which today underpin so much valley innovation, also enjoyed decades of Government support.

The Small Business Investment Act of 1958 established federal funding for US venture capital firms. In its first decade, the programme invested US$3 billion into young firms – over three times the amount invested by private venture capital funds.

The programme still exists and in 2013 it provided US$2.2 billion of funding investment. Many of the valley’s most dynamic tech companies – Apple, Compaq and Intel – have been backed by Government funds.

While our tech sector shouldn’t try to mimic Palo Alto – our market is very different – there are many reasons to believe we can build a credible and sustainable tech sector that is economically significant over the long-term. Over the past 15 years there has been significant progress in building New Zealand’s technology landscape.

The annual TIN100 survey shows that over the past eight years, revenues from New Zealand’s top 100 technology companies have jumped from $4.7 billion in 2006 to $7.6 billion in 2014.

While NZ has some catching up to do if we want to create a technology sector of significant economic scale, we are well on the way.

The TIN100 result backs up what we are seeing daily in the business news pages, with a stream of new technology companies becoming household names – alongside Fisher & Paykel Healthcare, Datacom and Trade Me are the likes of Xero, Orion Health, Wynyard Group, Rakon and Pacific Edge.

The innovation pipeline of the next generation of technology companies also looks very healthy.

New Zealand’s tech sector is being built through the application of innovation and technology across multiple sectors led by the software industry. There are many other sectors where unique technology solutions are being developed.

Healthcare integration, helicopters, paint, parking, apples, animal health, surgical dressings and cystic fibrosis are examples where local innovation is leading the world.

There is no single factor driving this innovation. The role of successful private sector leaders and entrepreneurs is crucial. But so, too, is the support from the Government, from establishing Callaghan Innovation, developing business incubators, encouraging more R&D, commercialising more university research and strengthening our capital markets.

We know it takes a long time to develop a sustainable venture capital sector – the Valley’s VC sector took 40 years to develop. And while our VC market is likely to remain boutique, servicing local start-ups as they grow, their role is critical in filling the $2 million-$10 million funding gap – beyond crowdfunding and angel investors, before traditional capital markets.

We may never rival the US but we need to ensure our VC sector reaches a critical mass to meet the needs of New Zealand’s growing tech sector.

Since its establishment as a Government-owned and funded company, NZVIF has partnered with 10 venture capital funds. Alongside its fund partners, NZVIF has invested into some of New Zealand’s most promising growth companies – including Orion Health, Xero and PowerbyProxi.

For every dollar invested by the Government through NZVIF, there must be at least 1:1 matching investment from private investors. The public/private sector investment leverage runs significantly above that. To date, a total of $1.1 billion has been raised for NZVIF VC-funded companies of which NZVIF’s contribution is $100 million.

Overall the VC fund has returned 5.6 per cent per annum. Post-GFC, VC fund investments are showing returns of 26 per cent per annum.

New Zealand has made significant progress over the past two decades and the results can be seen in the array of emerging technology companies with good growth prospects. If every year we have two to three VC funds investing across 10 companies in the $2 million-$10 million funding gap, the impact could be significant.

Building a vibrant early stage investment ecosystem is not an insignificant goal. Look at the countries which have succeeded – the US, Israel, Finland and Singapore. In all, government support behind private sector endeavour has been instrumental.

Franceska Banga is chief executive of the NZ Venture Investment Fund

First published NZHerald 26 March 2015

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Andy Hamilton: Kiwi companies need to think bigger

In this article Ice House CEO and former AANZ Chair, Andy Hamilton challenges us all to think bigger and be more focused in our aspirations for economic growth and specifically the ventures angels are supporting.

Everything is fine in New Zealand is it not? The country has experienced a great few years. We have ridden the commodity boom and other countries’ misfortunes.

Things have changed for the better, while many things have not. What could be wrong?

My view is the current Government has a definitive optimistic plan for our economy and it should be complimented for its focus, clarity and execution.

At the same time, I wonder whether it has an indefinite optimistic approach to the hidden challenge that exists, and that is dangerous for our long-term prospects.

To me, the Government lacks a plan to enable our economy to be truly competitive longer-term.

Just riding out the macro factors will not be enough to win.

We have always, it seems, produced great people and some teams which are world beaters, but we have not and are not creating great companies on a global scale fast enough.

A key metric: How many companies in New Zealand employ more than 100 people? The answer is 2318, with an average employee number of 430, representing 48 per cent of all employed persons in our country. Do you think this is a small or big number?

Actually, the relative result is very similar to comparable countries, but the hidden metric, the big and scary difference, is the quantum size of our big companies vis-a-vis these other countries.

Our big are way, way smaller.

This has implications for our long-term prospects and I believe this needs to change for us to improve the nature of our economy and ultimately GDP per capita for our people.
We lack a supply of entrepreneurs who can turn ideas into global companies like the Israelis or Americans or a supply of talented executives in fast-growing industries such as technology that can do the coding, do the tech work.
Without this wealth we will not be able to look after our people and the increased stratification that is occurring between the rich and poor all over the world will also be in NZ. That leads to discontent and worse.

We know we produce good talent, whether that is as sportspeople or executives in large organisations. We know we can make stuff, like milk and more recently technology.

But can we build big companies that ultimately benefit and help us create a better future for New Zealand? Big question.

Our Government knows this is the problem. Even though it may be harsh to say its position is as an indefinite optimist, I contend that it lacks a plan and the confidence to attack this issue, and maybe even it has not prioritised this as far up the job list as it should.

One company the size of Fonterra is not going to cut it, it is like what we call “key person risk”.

My solution: Only one thing matters and that is talent, but talent specifically in building big and bigger companies.

Let’s take the pulse for that.

We have a great bunch of expats and Kiwiphiles, and arguably an over-supply in the demand for their skills, experience and networks.

We are seeing emerging technology and new age leaders, aspirational millennials who don’t want to work for the “person”. An emerging group of early stage investors, angels and venture capitalists who are learning fast how to support and enable our companies to succeed. And an emerging global group of believers, Peter Thiel of Founders Fund and Vinod Khosla of Khosla Ventures to name just two.

On the other hand, we don’t have senior executives in our big companies who are built to succeed in the world, nor board members of our big companies with diverse perspectives and experience from key markets such as Asia and America.

We lack a supply of entrepreneurs who can turn ideas into global companies like the Israelis or Americans or a supply of talented executives in fast-growing industries such as technology that can do the coding, do the tech work. And finally, we lack a set of investment bankers who can help build global capital pools to support our companies’ global aspirations.

There is much work to do, and the only thing to do when faced with a big challenge is to start biting it off one chunk at a time.

We must do something, we must engage. If you live overseas then nominate yourself to go on the boards of Kiwi companies to give them an outside-in perspective. Do like Bridget Coates, Derek Handley, Phil Veal and Claudia Batten and find a way on to the boards.
The director pool in New Zealand is a blue-rinse club, both men and women, and it was very challenging for these people to break through, but they did, and so should you because it does and will make a difference.
The director pool in New Zealand is a blue-rinse club, both men and women, and it was very challenging for these people to break through, but they did, and so should you because it does and will make a difference.

If you are from the tech industry, and you know how to hire and train more people to get into the tech industry, we need you in New Zealand, because our fast-growing tech companies are sucking up all the available talent and not investing enough to fill the gap of what is likely 10,000 jobs right now.

Maybe instead of going from 500 to 700 focus firms for the Government’s NZTE, they should have gone to 300 firms and really enabled their scaling, or were they worried about the value they create for these firms?

Now, despite the challenges and hurdles, there are some signs that are good. There is a shift happening in NZ, it is just that you need to look for it.

Look at the number of listings over the past few years alongside the performance of the NZX itself, which has ranged from 15-28 per cent year on year for the past three.

There have been exits too, Greenbutton’s sale to Microsoft generated a significant return for the founders and investors, Sutton Group and Gardians were sold to Danone showing it is not just tech where value can be created.

There is also an emerging pack that includes Lanaztech, Rocket Lab, PowerbyProxi, Nexus6, Vend and Shuttle Rock and others regularly coming out like STQRY, Puteko, Parrot Analytics, Drikolor, 1-Above, Harmoney, Varigate, Texus Fibre and iMeasureu.

All of this activity is healthy, it fuels and stokes the pipe, but we need to remember that we must see scale being achieved from this. How many companies sit alongside Fonterra and are actually delivering year-on-year sustainable returns? Wouldn’t it be great to have the top 10, top 50 globally relevant and scaled businesses owned out of New Zealand?

Things are good in New Zealand, but we should not be fooled. In my view we must address our lack of ability to build scaled and relevant global corporations from New Zealand and we must get on to it now.

I encourage others to positively address this challenge by finding ways to make a difference to create globally scaled and relevant firms from New Zealand.

Andy Hamilton is chief executive of business incubator The Icehouse.

First published in NZ Herald 12 March 2015

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Ray Thomson named as New Zealand Arc Angel 2014

Ray Thomson, the Auckland-based director of several budding Kiwi companies and a long-term angel  investor and early-stage investment champion has been awarded the prestigious Arc Angel Award at the 2014 Angel Summit in Auckland this week.

The Arc Angel Award is the highest honour New Zealand’s angel investment community can bestow. It recognises someone who has steadfastly championed the cause of angel investment and the investors who are willing to give a significant amount of time and money to help those start-ups and early stage companies, and particularly the entrepreneurs who risk all to establish those companies, to reach their potential.

Marcel van den Assum, chairman of the New Zealand Angel Association (AANZ) says the award was an acknowledgement of Ray Thompson’s long contribution to New Zealand’s angel investment industry. “Ray has been a long-term investor in and champion of early stage companies in New Zealand. He’s played active roles in both the Auckland-based Ice Angels group and the Angel Association, of which he is a past chairman. Most importantly he has unstintingly promoted angel investment, helping it to become a powerful force in New Zealand’s economic development today.”

Suse Reynolds, AANZ Executive Director, says Ray has not only been a mentor to many new entrepreneurs, but many new angels too. “He always has time for a cup of coffee with anyone needing help or advice whether about the company they are growing or the companies they want to invest in. He’s a true New Zealand angel and we’re all delighted he’s been given this year’s Arc Angel Award.”

Ray Thomson joined the ICE Angels in 2007 following an active and extensive career as a share broker, director and chair of a number of different investment groups. He has invested more than $1 million through the ICE Angels and directly into more than 25 companies, including Biomatters, Nexus 6, Inro, Drumleaf, Caldera, IM-Able, Nextspace, Booktrack, Parrot Analytics, Footfalls & Heartbeats, Varigate, Puteko, GreenButton, Manuka Health and Supreme Biotechnologies. He was a member of the ICE Angel’s Advisory Board from December 2010 until December 2013 and was the inaugural recipient of the William H. Payne Active Angel Award in November 2010 for being the most active ICE Angels’ Investor. He is on the Global from Day One (GD1) Fund Investment Committee and serves on a number of boards including Manuka Health New Zealand, Supreme Biotechnologies, Rush Digital Interactive and the Institute of Directors.

Former Arc Angel winners include Phil McCaw, managing partner of investment firm Movac; The Warehouse founder and long-time angel investor Stephen Tindall; Andy Hamilton, chief executive of Auckland-based incubator and business educator The Icehouse; and US super angel and Kiwiphile Bill Payne.

The sixth annual Angel Summit in Auckland was attended by over 120 delegates including investors from New Zealand, Australia and the United States. The Summit included an investment showcase in association with the local angel network, ICE Angels, where 12 high-growth companies, all with global aspirations, pitched to a packed house of investors.

Ends

For more information, please contact:

Marcel van den Assum, chair AANZ, on mob: 021 963 459 or email: [email protected]; or

Suse Reynolds, AANZ executive director, on mob: 021 490 974 or email: [email protected]


The Angel Association of New Zealand (AANZ)

The Angel Association is an organisation that aims to increase the quantity, quality and success of angel investments in New Zealand and in doing so create a greater pool of capital for innovative start-up companies. It was established in 2008 to bring together New Zealand angels and early stage funds; to support the angel networks and help create new networks; to promote the growth of angel investment in New Zealand by encouraging and educating entrepreneurs, new angel investors and angel groups; and to ensure the ongoing success of the angel movement through developing industry strategy, encouraging collaboration and educating the wider New Zealand public about the importance of angel investing in growing our economy. AANZ currently has 13 members representing more than 600 individual angels associated with New Zealand’s key angel networks and funds. Recent NZ Venture Investment Fund data revealed angels have invested almost $NZ300 million in over 600 deals in the last 7 years. For more, please visit: www.angelassociation.co.nz

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NZX backs NZ’s growing angel movement

NZX, the operator of New Zealand’s stock exchange, has thrown its support in behind New Zealand’s growing angel movement, by sponsoring the Angel Association of New Zealand (AANZ).

Angels are businesspeople who invest their money and often their time in early-stage and startup companies in order to help them grow and become the next generation of employers and innovators.

This partnership between AANZ and NZX is an important one as it not only provides extra resource to help New Zealand angels develop their skills and networks on a national basis, it also strengthens ties for companies-backed by angel investors with the more formal capital markets, says Marcel van den Assum, an angel investor and chairman of the AANZ.

“We’re delighted to announce this sponsorship. Angel HQ, the angel network I’ve been associated with since its inception, launched at NZX six years ago with the aspiration that ventures funded at this level would become opportunities for a wider network of investors to support through NZX. There is much angel-backed companies can learn from the people at NZX and from New Zealand’s many listed companies, their directors and their shareholders, many of whom are also angel investors. We look forward to strengthening our relationship still further over the coming years and providing a pipeline of companies for the new NXT market that NZX will soon launch.”

Aaron Jenkins, NZX’s Head of Markets says NZX’s decision to support the Angel Association was a logical one. “We have mutual and complementary goals. We both want to encourage young New Zealand businesses to ‘take on the world’ for the economic benefit of all New Zealanders. The Angel Association is a key part of the critical breeding ground for New Zealand businesses as well as a representative body of educated investors. These are both important components of our capital markets and particularly NZX’s soon to launch NXT market.

“Ideally, once they’ve proven their abilities, we’d like to see a greater proportion of these growing businesses coming to our public markets to raise the capital they need to fuel the next stages of their growth. NZX also has a focus on improving investor literacy among everyday New Zealanders to encourage more people to take an interest in New Zealand’s capital markets and the businesses that rely on those markets.”

 

For more information on the AANZ or on early stage companies, please contact:

Marcel van den Assum on mob: 021 963 459 or email: [email protected]; or

Suse Reynolds , AANZ executive director on mob: 021 490 974 or email: [email protected]
For more information about NZX, please contact:

Kate McLaughlin, Head of Communications, NZX on T: 09 3093654, M: 027 533 4529 or E: [email protected]

 

 

Background information

The Angel Association of New Zealand (AANZ)

The Angel Association is an organisation that aims to increase the quantity, quality and success of angel investments in New Zealand and in doing so create a greater pool of capital for innovative start-up companies. It was established in 2008 to bring together New Zealand angels and early stage funds; to support the angel networks and help create new networks; to promote the growth of angel investment in New Zealand by encouraging and educating entrepreneurs, new angel investors and angel groups; and to ensure the ongoing success of the angel movement through developing industry strategy, encouraging collaboration and educating the wider New Zealand public about the importance of angel investing in growing our economy. AANZ currently has 13 members representing more than 600 individual angels associated with New Zealand’s key angel networks and funds. Recent NZ Venture Investment Fund data revealed angels have invested almost $NZ300 million in over 600 deals in the last 7 years.

For more, please visit: http://www.angelassociation.co.nz/

 

NZX

NZX builds and operates capital, risk and commodity markets and the infrastructure required to support them. NZX provides high quality information, data and tools to support business decision making. It aims to make a meaningful difference to wealth creation for its shareholders and the individuals, businesses and economies in which it operates.

For more, please visit: http://www.nzxgroup.com/

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Company incubator network expands

Tags: Incubator

New Zealand’s nationwide network of business incubators is being expanded, with the introduction of a new type of technology-focused incubator designed to get more high-growth start-ups off the ground, Science and Innovation Minister Steven Joyce announced today.

The list of incubators approved by the Callaghan Innovation Board includes three of the new technology-focused incubators and five founder-focused incubators, previously known as Business Incubators. The technology-focused incubators will have access to the pilot repayable grant programme announced in Budget 2013.

“The response from the market has been really positive, with a considerable number of high quality applications from across New Zealand,” Mr Joyce says.

“It has been encouraging to see a number of new applicants entering the incubation space and the keen interest in the new technology incubators.”

After a rigorous assessment process and a final recommendation from an independent panel, the Callaghan Innovation Board approved the following applicants:

Technology-focused incubators:

  • PowerHouse (Auckland, Wellington, Christchurch, Dunedin)
  • Astrolab (Auckland)
  • WNT Ventures (Tauranga)

Founder-focused incubators:

  • The Icehouse Ltd (Auckland)
  • The Bio Commerce Centre (Palmerston North)
  • Creative HQ Ltd (Wellington)
  • eCentre Ltd (Auckland)
  • Soda Inc Ltd (Hamilton)

Callaghan Innovation and the successful applicants are now in contract negotiations.

Mr Joyce says there was a high rate of collaboration between parties on proposals, especially within regions.

“Collaboration bodes well for developing and growing new companies in our high tech sector, which is crucial to growing our economy. If we can work smarter across industries and improve our access to innovation we will have a competitive edge in this dynamic and challenging sector,” Mr Joyce says.

The Incubator Support Programme from Callaghan Innovation offers support and funding to two types of business incubator companies, the existing founder focused incubator model and the new technology focused incubators.

Technology-focused incubators are privately owned businesses that will focus on commercialising complex intellectual property primarily sourced from publicly funded research organisations, such as universities and Crown Research Institutes.

Technology-focused incubators will be able to access a new repayable grants tool on behalf of the start-up companies they incubate. These grants will be administered by Callaghan Innovation. The Government will contribute up to $450,000 over two years to eligible companies resident in technology-focused incubators, matched 1:3 with incubator owners contributing up to $150,000. The Government grants will be repayable out of the company’s revenue. This pilot repayable grants programme has been allocated $31.3m over four years.

First published on beehive.govt.nz on Friday July 9 2014

 

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ROCKIT APPLE INTRODUCED IN ITALY

The size of fruit changes as well as purchase opportunities. In order to adapt to new trends like the tendency to have short lunch breaks and the preference for healthy snacks, Melavì and One App have officially launched Rockit apples on the Italian market.

“Its size is ideal and the innovative packaging means it can be eaten anywhere – it is perfect even for those people who wouldn’t normally eat fruit as a snack,” said Elena Picozzi from One App srl.

The size of fruit changes as well as purchase opportunities. In order to adapt to new trends like the tendency to have short lunch breaks and the preference for healthy snacks, Melavì and One App have officially launched Rockit apples on the Italian market.

“It is a unique apple, as it is fresh and healthy, but also rich in vitamins and mineral salts. Its sugar content is above average and its crunchiness and juiciness are also impressive,” explained Gianluigi Quagelli, chairman of Melavi.

The average diameter of apples varies between 65 and 85-90 mm, whereas these “miniature” apples measure 53-63 mm, on top of having a very long shelf-life.

They are sold in a practical 100% recyclable PET tube, so they can be taken along very easily. Each tube can hold between 3 and 5 mini-apples depending on the size of the fruit.

One App and Melavì (which gathers 75% of Valtellina apple producers) signed an agreement to use the brand and have therefore become the exclusive managers of this variety for the Italian markets with distribution rights in Switzerland, Spain and Russia.

The internationalization strategy for the brand is based on the selection of foreign distributors. Rockit used to be produced only in New Zealand but now it is being produced also in US and South Africa. Until 2017, therefore, these apples will be available only between April/October. Production in Valtellina will start in 2018 and then the fruit will be available the whole year round thanks to the alternation between the two hemispheres.

“Innovation is not as common in the fruit world. In this case, both the variety and the packaging are new. It is a new way to eat apples that we need to promote,” explained Tiziano Caprioli, sales manager for Melavì.

At the moment, Rockit is only on sale in a big supermarket chain, but new channels will be to reach the consumer target – shops, bars, airports, motorways, sports and wellness facilities, golf clubs, stadiums and beaches. So far, prices have been imposed by New Zealand.

For further info:
Società agricola Melavì
Email: [email protected]
Web: www.melavi.it

One App srl
Email: [email protected]
Web: www.oneappsrl.net

Publication date: 6/20/2014

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Kiwinet Commercialisation Award Finalists Announced

Finalists have been selected for the second annual KiwiNet Research Commercialisation Awards designed to celebrate success within New Zealand’s universities and Crown Research Institutes.

Innovationsfrom finalists include the Springfree™ trampoline, a rare pharmaceutical ingredient generating major export returns, titanium technologiesincluding 3D printed animal implants, pasture meters, artificial muscle technologies, precision seafood harvesting, eradicating bovine tuberculosis, controlling insects with sex, new vanilla products, and a wireless network partnership.

“The Awards celebrate the tremendous work of research organisations turning clever science into commercial value. Our 2014 finalists are some of the best at this, developing a new wave of exciting innovation that will create new companies, products and servicesto grow our economy,” says KiwiNet General Manager Dr Bram Smith.

“Many exciting stories of research commercialisation success are not well known. By putting the spotlight on the people and research organisations changing the commercialisation landscape in New Zealand, KiwiNet aims to inspire others to similar success,” says Smith.

The 2014 KiwiNet Research Commercialisation Awards finalists are:
AJ Park Commercialisation Collaboration Award
– Eradicating bovine tuberculosis with TBfree New Zealand, (Landcare Research and TBfree)
– Titanium Technologies New Zealand (TiTeNZ), (University of Waikato, Callaghan Innovation, GNS Science, University of Auckland, the Titanium Industry Development Association (TIDA) and a number of industry partners)

Researcher Entrepreneur Award
– Associate Professor Iain Anderson, StretchSense – entered by UniServices, University of Auckland
– Alistair Jerrett, Seafood Technologies, Plant & Food Research Minter Ellison Rudd Watts Research and Business Partnership Award
– Heilala Vanilla, entered by Massey University
– Controlling Insects with Sex, entered by Plant & Food Research
– Precision SeafoodHarvesting, entered by Plant & Food Research
– Wireless Network Partnership (University of Canterbury and Tait Communications), entered by

University of Canterbury Commercial Deal Award

– Springfree™ Trampoline, entered by University of Canterbury
– Kifunensine, entered by Glycosyn, Callaghan Innovation
– C-Dax Pasture Meter and Massey University’s Centre for Precision Agriculture, entered by Massey University

The BNZ Supreme Award will be presented to the entry which demonstrates overall excellence in all core areas of research commercialisation.

The KiwiNet Awards judging panel comprises Dr Andrew Kelly, Executive Director at BioPacificVentures, Sharon Hunter, one of New Zealand’s best-known business women and Director of Hunter Powell Investment Partners, professional director and ex-Angel Association Chairman Dr Ray Thomson, and director and executive advisor Helen Robinson, the founding CEO of TZ1.Lead judge Dr Andrew Kelly says, “It’s great to see another strong new set of applicants this year,
demonstrating that innovation is continuous in this country. These innovations are important as the next generation of the science and technology successes our economy is now seeing like Xero, A2 and Pacific
Edge.”

Kelly adds that the bigger pool of entries has been stimulated by the expansion of KiwiNet, ‘which is now the driving force in research commercialisation in New Zealand.’

Paul Stocks, Deputy Chief Executive of MBIE’s Science, Skills and Innovation Group, says MBIE supports KiwiNet’s collaborative approach to commercialising innovative research. “Research commercialisation is vitally important for New Zealand, as it can be a major driver of economic growth. KiwiNet is helping to
create greater commercial outcomes from our publicly-funded research, which will benefit all New Zealanders.”

The Kiwi Innovation Network (KiwiNet) (www.kiwinet.org.nz), is a consortium of 13 universities, Crown Research Institutes and a Crown Entity established to boost commercial outcomes from publicly funded research. KiwiNet partner organisations include WaikatoLink, Plant & Food Research, Otago Innovation Ltd, Lincoln University, AUT Enterprises, AgResearch, University of Canterbury, Callaghan Innovation, Viclink, Landcare Research, Cawthron Institute, ESR and NIWA. Principal support is provided by the Ministry of Business, Innovation & Employment (MBIE).

The Awards are the pinnacle of KiwiNet activities designed to build awareness and inspire research commercialisation success. Sponsorship support is provided by BNZ, Minter Ellison Rudd Watts, AJ Park, MBIE and Sciencelens photography.

BNZ director – value chain Jason Lewthwaite says New Zealand is increasingly recognised for its innovation, design and engineering which creates a huge opportunity for boutique products and services in overseas markets.

“The early stage innovation commercialisation that KiwiNet fosters combined with market contacts and experienced business partners such as banks and business organisations will allow New Zealand businesses to bring valuable new products and services to niche markets internationally.”All finalists will deliver a presentation in the final stage of judging on 11 June in Auckland. Winners will be announced at a reception that evening.

Read more

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Investment in Bold Kiwi Colour poised to paint the world

Arc Angels Executive Director, Alex Mercer, said part of drikolor’s® appeal is because it is managed and designed by a woman who has tremendous experience in the paint industry.

“The fact that drikolor a new product with few competitors, and are manufacturing locally with enormous potential offshore, all help make it a compelling business to invest in.”

In just 18 months drikolor® has transformed from a start-up with a disruptive technology, to one that has 10 employees, global partners, and a New Zealand-based commercial manufacturing facility readying to open.

The innovative process proprietary to drikolor® delivers colour in a dry, granulated form that can be stirred into paint. Rachel Lacy says it’s as simple as stirring sugar into coffee.

Read more from Scoop

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Angel investors prefer web companies

Investors in start up companies prefer web based software and services according to a recent survey by Angel Association New Zealand.

Angel investor’s preference for software companies is followed closely by technology hardware and equipment, then biotech and life-sciences.

Angel Association Chair, Phil McCaw said “around half of angel investors invest more than $30,000 on each deal, with twenty percent having up to $100,000 to spend.”

“Thirty percent of angels preferred deals involving $250,000 to $500,000 in the first round of funding being sought by a company. Investing in deals at concept stage with the product and market still needing validation was least popular. Investors prefer companies with a proven business model and some sales.”

“Angel investors bring expertise with their capital. Over a third of investors are prepared to roll up their sleeves and get deeply involved in preparing a venture for investment.

The Angel Association surveyed its members including those running seed funds and individuals who are members of formal networks. New Zealand has half a dozen managed funds investing in early stage ventures and approximately 200 angels belonging to networks based in Otago, Christchurch, Nelson, Wellington, the Manawatu, Tauranga and Auckland. A quarter of the members responded to the survey. Industry publication Young Company Finance reported the survey results in the March 2012 issue.

Angel investors have cumulatively invested $220 million into high-growth companies since 2006, in an average deal size of $540,000.

Contacts

Colin McKinnon, Executive Director, Angel Association New Zealand Incorporated
+64276406400
[email protected]

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Consolidating angels holding their own

Angel investment in New Zealand is consolidating at around 100 deals a year involving $30 million of investment into start-up companies a year, New Zealand Venture Investment Fund chief executive Franceska Banga said today.

Releasing the latest Young Company Finance Index, Franceska Banga said that angels invested $27.6 million across 95 deals involving young New Zealand companies in 2012. This compares to $34.5 million invested across 100 deals in 2011. It is similar to the investment levels in 2007 and 2008, although below the 2009 and 2010 boom years when annual investment reached $50 million.

Read more from NZVIF

Read the full Young Company Finance report

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BioLumic raises GD1 funding for offshore growth

Plant science company BioLumic has successfully completed a new investment round with backing from the Global from Day One programme (GD1). The investment will finance customer trials and a foray into international markets.

BioLumic is a Palmerston North company which is commercialising ultra violet light technology developed to improve crop growth within large scale horticultural systems. Its proprietary UV and ‘Smart Array’technology is able to control plant size, growth, stress tolerance and a range of consumer quality attributes in a way that has never beforebeen commercially achievable. “BioLumic is a very attractive investment proposition due to the significant potential of its technology to increase returns for high volume vegetable and algae growers internationally,” says GD1 chief executive Greg Sitters.

“The company is still at an early stage of developing technology that has massive worldwide applicability. The technology will revolutionise the way plants are grown. This kind of early stage investment in companies with immediate global potential is precisely the sort of opportunity which GD1 is very interested in backing.”

“BioLumic is fortunate to have the backing of a GD1 investment to follow our initial fundraising through the MIG Angels’ Fund 1 and the New Zealand Venture Investment Fund’s SCIF fund,” says Warren Bebb, BioLumic general manager.

“This latest investment enables us to conduct extra customer trials and engage more with potential international partners and markets. As a result of this funding, we will be in a strong position to have our first product in market by the end of 2014.”

The science behind BioLumic was developed by Dr Jason Wargent, an applied plant physiologist at Massey University. The company was founded in November 2012. Palmerston North-based BCC has to date managed the commercialisation process, and the company has also received a Callaghan Innovation Project Grant and a loan from the Central Energy Trust.

“The MIG Angels identified BioLumic as a company with high potential and invested in it through MIG Fund 1,” says Mike Creed, who represents MIG Fund 1 on the BioLumic board. “We are happy with the progress the company has made so far and absolutely welcome the investment by GD1. Increasing the cash on hand will give the company a bit more breathing space as it works towards its milestones.”

Bebb says BioLumic will soon begin customer trials at two sites in the North Island; the company will start small-scale customer trials later this month, and larger scale customer trials are scheduled to begin in November.

BioLumic has recently completed filing its PCT patent in New Zealand and, over the next year, says Bebb, the company will determine in which other countries to file. He expects the first commercial prototype to be available for testing by the end of 2013 and the second prototype, incorporating modifications of the first, is planned for trials in mid-2014. The company expects to be in production towards the end of 2014.

BioLumic (www.BioLumic.com)

BioLumic is a plant science company based on science developed at Massey University. Through manipulating exposure to doses of UV light, BioLumic’s IP has been shown to optimise plant growth for desired effects including yield, disease control, colour and flavour. Current applications of the technology are being developed that include treatments for transplant crop seedling quality; growth and quality regulation of fully indoor produced leafy vegetables and high-value salad herbs; and pathogenic disease treatments for a range of horticultural crops. The company is also investigating other applications of the technology such as manipulation of desired characteristics in the biological material for nutraceuticals, pharmaceuticals and algae.

Global from Day One (www.globaldayone.com)

GD1 is a seed investment fund which has up to $4.6 million available for investment – having raised $2.3 million from private investors and with access to matching co-investment from the New Zealand Venture Investment Fund. It aims to invest into around 25 start-up companies with international ambitions over the next four years. Nationally-focused early stage investor Sparkbox Ventures is managing the fund.

MIG Fund 1 (www.thebcc.co.nz/cms/page.php?view=mig)

Established in 2007, MIG Fund 1 targets potential investments at the seed and start-up phase of emerging businesses. Potential investments can be in any sector and come from across New Zealand, although MIG Angels are particularly interested in potential investments from the wider Manawatu region. With the fund nearly fully-subscribed, the MIG Angels are planning to launch MIG Fund 2 in 2014.

BCC (www.thebcc.co.nz)

Based in Palmerston North, BCC turns innovative ideas into thriving new businesses. It secures investment funding to grow technology businesses, offers management support and mentoring for start-ups, and facilitates the journey from concept to commercialization.

Media contact
Warren Bebb
General Manager
BioLumic Ltd.
DDI +64 6 352 0102 M +64 21 799 257
[email protected]

For GD1, contact David Lewis 021-976 119

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MOVAC Invests In 1Above

MOVAC, the venture capital investment firm, has taken a 13% stake in 1Above, a functional drink that helps people fight jet lag and combat many of the health risks and discomfort related to flying.

1Above raised more than $2.4 million in this latest investment round, which was led by MOVAC and included TradeMe founder Sam Morgan and existing shareholders. Investors were attracted by 1Above’s exponential quarter-on-quarter growth since being launched in December 2010 and the quality of the team.

The funds raised will be used to accelerate the company’s global expansion and build the executive team, says Founder and Chief Marketing Officer Roger Boyd. “Attracting the likes of MOVAC and Sam to our loyal shareholder base is a real endorsement of the company’s abilities to deliver and scale. We are still a small company in the scheme of things, but we have achieved great channel successes. For example in WHSmith, in Australian airports, we are the third or fourth brand in terms of sales out of more than 40 in the fridge. We also have a great repeat purchase rate, terrific unsolicited customer endorsement and a loyal base of flight crew and well-travelled ambassadors who are helping grow the company by sharing their own positive stories. It’s a very exciting time at the moment.”

Work to build the executive team has already begun with the appointment of Tony Kerridge as Chief Executive Officer. Tony was General Manager and a shareholder of Caffe L’affare, a business he helped build from inception. It was sold for a reported sum of $25 million to Cerebos, the Australasian sauce, spice and coffee manufacturer, owned by the Japanese beverage giant Suntory. Tony was also an early investor in Charlie’s, the juice company, which was sold to Asahi in 2011 for $129 million. He has been an investor in 1Above since launch and brings years of FMCG sales and marketing
experience to the business, says Boyd. “He will be a great asset in this high growth period.”

New Zealand business investor and advisor Mark Wynne has also joined the board as Chairman. Mark was President of Kimberly Clark South Asia and has more than 25 years global leadership and brand building experience. He joins MOVAC partner Mark Vivian and investment banker and long-term 1Above investor Toby King on the board.

MOVAC was attracted to 1Above by the company’s targeted focus on a deep narrow distribution channel and 1Above’s creation of a new food and beverage business category, says MOVAC’s Mark Vivian. “Roger has demonstrated the potential of 1Above in a relatively short space of time, and this has been further evidenced by the quality of the team that he has attracted. I’m very excited by the range of opportunities that we have in front of us.”

The investment makes 1Above the third portfolio company in MOVAC’s third fund, and one of several investments MOVAC expects to name shortly as it continues to invest in Kiwi companies which have the ability to rapidly scale revenues.

Boyd, a former Fonterra Brands general manager, says the company is now well placed to reach its ambitious growth targets. 1Above is also advertising for new staff to beef up its international sales and marketing team.

For photos, interviews or further information please contact:

Roger Boyd on +64 201 111 201 or [email protected]

Mark Vivian on +64 272 464 936 or [email protected]

Notes to editors:

1Above® – The Flight Drink – www.fly1above.com

Launched in Dec 2010, 1Above® is a functional beverage targeted at helping people fly well and arrive ready to get more from their travels. The company was founded by Roger Boyd a former Fonterra executive after suffering years of jet lag and on the back of rising health concerns. 1Above contains significant dietary levels of six essential electrolytes; 67-133% of your daily B vitamin needs; grape seed extract; and an active ingredient Pycnogenol®, which has been shown in 58 clinical studies to reduce the length and severity of jet lag and support healthy circulation, amongst other benefits.

MOVAC – Venture capital – www.movac.co.nz

MOVAC is an experienced fund manager that provides venture capital to New Zealand businesses that have potential for rapid and large-scale growth. It has made a number of early stage investments over the past decade and is currently investing Fund 3: a $42m fund that provides $500k to $5m of growth capital to companies who have a plan, the potential and the commitment to grow. MOVAC provides capital, expertise and connections.

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Lead Partners

NZTE NZVIF PWC

Expert Partner

AVID “FNZC.jpg”

AANZ Summit Sponsors

Callaghan Innovation “UniServices” Kiwinet “Spark”