StartToday considers whether StretchSense fits

This has been a great year for validation of angel backed ventures. Angel investors in StretchSense are delighted with the traction this venture is getting.

StretchSense, a New Zealand-based wearable sensor manufacturer spun out from University of Auckland, revealed yesterday that it had agreed a call option to be acquired by e-commerce portal StartToday.

StartToday already owns a 39.9% stake in the spinout ad would pay $72m for the remaining shares.

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Idealog’s Guide to Tauranga: Follow the money

Businesses in Tauranga looking to scale up should count themselves lucky: the Bay of Plenty is one of the only regional centres in New Zealand with funding available for nearly every stage of business growth. There are three organisations on hand ready to help: early-stage investment provider Enterprise Angels, tech investor and incubator WNT Ventures and later-stage private equity provider Oriens Capital.

For companies in the early stages of investment, WNT Ventures is technology incubator that’s been put together to nurture innovative ideas nationwide. It’s currently on a five-year pilot trial receiving government support through Callaghan Innovation.

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Heavenly manna from angel investors

The Canterbury Angels startup investment group is on the hunt for startup investments following a recent agreement with the New Zealand Venture Investment Fund.

The partnership means when Canterbury Angels invest in a new company, NZVIF will match it dollar-for-dollar, according to local Angels chairman Ben Reid.

The taxpayer-funded NZVIF was set up by the government in 2002 and has $280 million invested in various companies in funds.

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Dave Moskovitz – Publons angel exit

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

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Apple robot up for angel investment

A Tauranga company is ready to take its apple packing robotics offshore and help remove the headache of finding staff to do mundane work.
The automated apple packing machines place apples in trays ‘‘colour up’’ with the stems aligned, using sensors, software and electromechanical technology, and are expected to remove some of the monotonous work that apple packhouses find difficult to staff.

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NZ Angel Values and Expectations

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

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

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

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

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

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

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

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

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

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

What does this look like in practice?

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

Ends

Suze Reynolds

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New Zealand Mergers and Acquisitions – Trends and Insights

Chapman Tripp Corporate and Commercial News
Mergers & acquisitions volumes are holding up both internationally and in New Zealand despite an unexpected period of geopolitical and economic volatility, according to our annual Mergers & Acquisitions – trends and insights report released today.
Expected M&A trends in 2017:
 *   A gap between the number of cashed-up investors and the availability of good quality New Zealand assets will see a sellers’ market in 2017, resulting in strong price expectations, but without a return to the irrational exuberance of 2007
*   Robust private equity (PE) interest driven by cashed up PE firms on both sides of the Tasman
*   An improved Overseas Investment Act consent process will result in less competitive advantage for domestic buyers in contested transactions as shorter timeframes reduce the regulatory hurdle of gaining Overseas Investment Office (OIO) consent
*   Iwi will be more active dealmakers as they look to diversify their investments, and
*   A slow-down in activity as the New Zealand general election, scheduled for 23 September, nears, with a potential burst of post-election activity to follow.
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Trevor Dickinson named New Zealand Arch Angel 2016

One of New Zealand’s most prolific angel investors, Trevor Dickinson, has been awarded the Angel Association of New Zealand’s (AANZ) prestigious Arch Angel Award at the 2016 NZ Angel Summit in Hawke’s Bay.

The Arch Angel Award is the highest honour in New Zealand’s angel investment community, and recognises individuals who have steadfastly championed the cause of angel investment and investors.

The award highlights the work of angel investors who give a significant amount of their time and money to help startups and early-stage companies – as well as their founders and teams – to reach their potential.

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MEDIA RELEASE: Canterbury Angels flying with new partnership

The New Zealand Venture Investment Fund is partnering with the newly formed Canterbury Angels to invest into start-up companies. The Christchurch-based angel investor group was formed in 2015 and now has 35 members, most of whom are experienced investors or have been involved in establishing businesses previously.  Its leadership includes chair Ben Reid, who chaired the Canterbury Software Cluster, Shane Wakelin, Joan McSweeney, Ria Chapman, Mark Cathro, Raphael Nolden, Ian Douthwaite, and SLI Systems co-founder Geoff Brash. Canterbury Angels chair Ben Reid said the partnership will bring more investment into innovative companies in the Canterbury region and around New Zealand. The new investment partnership with NZVIF means that when Canterbury Angels invests into a new company, NZVIF will match investments dollar-for-dollar giving both investors and entrepreneurs confidence that the investment round will be successfully completed. Our focus will be on new companies emerging in Christchurch and nearby.  But our members will also invest in syndicated opportunities throughout New Zealand to ensure we have a broad portfolio of companies. “Based on our experience to date, we expect to see a healthy deal flow.  There are a lot of innovative ideas in Christchurch that are seeking capital.  We have two universities which produce high quality research.  We work closely with other parts of the innovation ecosystem in Christchurch, such as EPIC, Lightning Lab, Greenhouse and the newly-opened Vodafone Xone.  As new startups emerge from the ecosystem, this partnership will help to provide some of the early stage capital to meet their needs. “Our expectation is that the partnership will run for around four to five years, investing into around 10 to 15 young companies during the first 12 to 18 months. With NZVIF committing on a matching 1:1 basis with Canterbury Angels investors, it doubles the capital available to a company than would be the case if we did not have the partnership.” This is the sixteenth partnership NZVIF has entered into through its Seed Co-Investment Fund and the second in Christchurch, having previously partnered with Powerhouse Ventures.  To date, NZVIF and its angel partners have co-invested around $142 million into over 150 companies. NZVIF investment director Bridget Unsworth said that the new partnership is needed to keep up the momentum in the angel investment sector. “The past year has seen continued healthy investment activity across New Zealand with over $60 million invested by angel funds and groups.  Christchurch sees around 10 percent of angel investment activity.  With Canterbury Angels now actively investing alongside other early stage investors, it provides another source of capital for entrepreneurs in Canterbury. “There is a healthy level of syndication of investments between different angel groups meaning they are likely to invest in opportunities throughout New Zealand.  This allows groups like Canterbury Angels to diversify their portfolios beyond just the local opportunities.  Early stage investing is a high risk investment class and so diversification is important. “Current investment activity is healthy and there is a good pipeline of young technology companies needing investment capital to develop.  Since NZVIF began collecting the data in 2006, angel groups have invested over $400 million into young technology companies.” BACKGROUND INFORMATION Canterbury Angels Canterbury Angels is a new angel network and was established in 2015.  It aims to be a broad-based network drawing in investors from throughout Canterbury.  It currently has 35 members and has made four investments in its first year. NZVIF’s Seed Co-investment Fund NZVIF is involved with angel investors through its Seed Co-investment Fund (known as SCIF).  SCIF was established in 2005 to catalyse the growth of angel investment and has now invested into over 150 companies.  Its portfolio includes Christchurch companies like Hydroworks, Crop Logic and Invert Robotics.

Media contacts NZVIF: David Lewis, m: 021 976 119, david.lewis@nzvif.co.nz

Canterbury Angels: Gabby Addington, gabby.addington@canterburyangels.nz

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MEDIA RELEASE: Angels solid during first half

Angel fund investment was solid with $22.9 million invested during the first six months of the year, according to the latest Young Company Finance Index. The result was $3.3 million (or 17 percent) higher than the same period in 2015, although below the strong first half year periods seen in 2013 and 2014.

New Zealand Venture Investment Fund investment director Bridget Unsworth said the $22.9 million was invested across 46 deals, of which 78 percent ($17.9m) was follow-on investment and 22 percent ($5m) was new investment.

“This split was similar to the first half of 2015 and shows that investors were primarily supporting existing investments rather than funding new companies, following a period of much larger investing into new deals in the second half of 2015.”

Forty-six percent ($10.3 million) was invested into software and service companies, continuing that sector’s strong performance.  The next most active sector for investment was pharmaceuticals and biotechnology with 20 percent ($5.6 million) of investment.

Local early stage companies continue to attract overseas investors’ attraction. In addition to the $22.9 million of local investment, the angel-backed companies attracted a further $8.5 million from international strategic investors.

Angel Association chair Marcel van den Assum said it was great to see continued strong commitment from angel investors.

“We all know that angel investment stands or falls on the quality and volume of deal flow. There is no shortage of either at the moment with good opportunities also emerging from accelerators. This is very positive but it does create ‘pipeline’-pressure. Great deals will only be sustained with deeper pools of non-angel growth capital as angel-backed companies develop and need new capital to continue to deliver on their potential.

“Follow-on rounds continue to dominate, reflecting an appetite to realise business potential and generate returns.  Pleasingly, we are now seeing angel groups distinguishing between follow-on for companies meeting milestones and targets, rather than follow-on to keep investments alive.

“Emerging angel networks in Canterbury and Taranaki will gain confidence from this level of activity and their addition to the sector will support the increasing demand for capital and capability.

“It is pleasing to see the growing trend towards biotech investment, which should be an area of real strength for New.”

After a very busy period at the end of 2015, the 12 months to 30 June 2016 saw $64.5 million invested into young companies, continuing the strong trend over the past few years.  Cumulatively, $438 million has now been invested into young companies by angel funds and networks since the Young Company Finance Index began measuring activity in 2006.

Three angel-backed companies launched crowdfunding rounds and raised $1.87 million (all from Equitise).

 

 

 

 

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Lead Partners

NZTE NZVIF PWC

Expert Partner

NZX AVID AJ Park “FNZC.jpg”

AANZ Summit Sponsors

Callaghan Innovation “UniServices” Kiwinet “Spark”