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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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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Lead Partners

NZTE NZVIF PWC

Expert Partner

AVID “FNZC.jpg”

AANZ Summit Sponsors

Callaghan Innovation “UniServices” Kiwinet “Spark”