NZ-born LanzaTech makes biofuel breakthrough for Sir Richard Branson’s Virgin Atlantic

New Zealand-born company LanzaTech has made an aviation biofuel breakthrough with partner airline Virgin Atlantic.

The company has produced nearly 5700 litres of low-carbon ethanol produced from waste gases for the airline, founded by Sir Richard Branson.

The company was founded in New Zealand 11 years ago and the parent company remains New Zealand-registered while its headquarters have moved to Illinois.

LanzaTech and Virgin Atlantic say they will work with Boeing and others in the aviation industry to complete the additional testing that aircraft and engine manufacturers require before approving the fuel for first use in a commercial aircraft.

“Assuming all initial approvals are achieved, the innovative LanzaTech jet fuel could be used in a first of its kind proving flight in 2017,” LanzaTech and Virgin Atlantic say.
The two companies have been working together since 2011.

The Lanzanol fuel was produced in China at the RSB (Roundtable of Sustainable Biomaterials) certified Shougang demonstration facility. The alcohol-to-jet process was developed in collaboration with Pacific Northwest National Lab with support from the US Department of Energy and with the help of funding from HSBC.

Sir Richard Branson said: “This is a real game changer for aviation and could significantly reduce the industry’s reliance on oil within our lifetime.”

In 2008 Virgin Atlantic was the first commercial airline to flight test bio-fuel flight – derived from coconut and babassu oil.
“We chose to partner with LanzaTech because of its impressive sustainability profile and the commercial potential of the jet fuel,” Branson said.

The airline’s understanding of low carbon fuels had developed rapidly over the last decade.

The company, which has received more than $14 million in New Zealand Government funding, shifted much of its previously Auckland-based research and development workforce to Chicago in 2014.

LanzaTech has raised more than US$200m from investors including Silicon Valley-based Khosla Ventures and the NZ Superannuation Fund, which has invested US$75m. Other investors included Sir Stephen Tindall’s K1W1 fund and Mitsui.

Its technology is based around steel production, which produces waste carbon monoxide (CO) gas, frequently flared to the atmosphere as carbon dioxide.

The process involves capturing carbon from the waste gas via fermentation to ethanol, which is recovered to produce ethanol feedstock for a variety of products, including aviation fuel.

Other airlines have trialled biofuel made from waste cooking oil, and in the case of Air New Zealand the Jatropha plant.

 

First published – NZ Herald 15 September 2016

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MENTORLOOP RAISES $300,000 IN SEED FUNDING

MENTORING is acknowledged as a vital part of career development, but even some of the most well-run businesses struggle to do it right.

This was an issue that long-time Melbourne-based friends Heidi Holmes and Lucy Loyd identified, and then targeted with a new cloud-based software offering named Mentorloop.

Having recently raised $300,000 in seed funding, which valued the business at $2 million, the pair’s idea to creating a mentoring management system has clearly taken hold.

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READY FOR LAUNCH

SHOWCASING INNOVATIVE NEW ZEALAND COMPANIES THAT ARE SEEKING TO FUND THEIR NEXT STAGE OF GROWTH.

The Investment Showcase is a partnership between NZTE and the Angel Association NZ and will be held on the opening night of the 2016 Angel Summit.

Guests include Angel Summit delegates, local and international investors and other key stakeholders in the NZ investment community.

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University Startup Challenge gives chance for student founders to pitch for funding

The University Startup Challenge is back for its second year to give student startups the chance to get funding from investors.

Student-led investment group First Cut Ventures started the University Startup Challenge last year to give university students who have their own startups the chance to pitch in front of investors at the Ice Angels annual showcase.

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Ask the expert: where to go for funding

OPINION. Q: I need to raise funds to upgrade the IT infrastructure for my small business. What’s available and how do I access it?

A: That depends on a range of factors such as your current finance structure (are you in debt, highly leveraged, debt-free?), what stage your business is at and how much you need.

But, before you explore external capital raising options, ensure you’ve covered off any internal sources such as savings you can access or surplus assets in the business that could be liquidated to raise funds.

Once you’ve done that, you then need to calculate how much more funding you’ll need by preparing cash flow forecasts.

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Government earmarks $15m towards commercialising hi-tech developments

The Government’s $15 million investment into initiatives supporting Kiwi start-ups is a step in the right direction but there’s still more to be done, a Massey University economist says.

The Pre-Seed Accelerator fund is aimed at developing “cutting-edge” research into viable start-up businesses.

Science and Innovation Minister Steven Joyce said hundreds of savvy hi-tech Kiwi companies were succeeding on the world stage.

“These programmes are all about filling the pipeline with the next generation of quality Kiwi start-ups.”

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Angels head to TechweekAKL

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

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

Angel@mytable: 18th May, from 6pm, The Grid – book your seat here.
Tech Innovation Showcase: 18th May, 3.30–5.50pm, Astrolab – apply for an invitation here.

Angel@mytable

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

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

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

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

The Tech Innovation Showcase

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

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EA Fund 2

Enterprise Angels, a BOP and Waikato based Angel group, has recently launched EA Fund 2.  Please click here to view the EA Fund 2 Information Memorandum.  Hard copies are also available upon request.

The IM provides a unique insight into the early stage investment market in New Zealand and the largest investor group, Enterprise Angels.  It also provides you the information you’ll need to make an informed decision about joining EA in investing in this exciting and potentially highly rewarding investment sector.  Pages 4 and 5 provide a summary of the Fund’s Key Terms.

This is an easy and accessible way to get involved in startup investing and is open to all Wholesale Investors.

Why consider investing?

  • EA Members:  Sector experts and experienced early stage investors invest first, providing the Fund confidence in its investment decisions;
  • EA Team:  Professional staff and Investment Committee members have years of experience in the early and later stage markets and funds management;
  • Investor Protection:  Protective investor terms and valuation are negotiated to help mitigate the risk of investing in this high risk/high reward sector; and
  • Investment Management:  All investee companies are monitored, provide quarterly, 6 monthly and annual reports and (where possible) provide a board seat to an EA / EA Fund Investor Director.

If you are interested in learning more about the Fund, please click here.

Please also contact Enterprise Angels directly if you have any questions.  You can find out more about us on our website.

This is an early stage investment opportunity and as such is high risk and potentially high reward.  Any investment in this Fund is illiquid and should be considered a medium term (5-10 years) investment.  This is a wholesale offer and is only available to people meeting the criteria for a wholesale investor as defined in the Financial Markets Conduct Act 2013. 
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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: marcel@angelassociation.co.nz; or

Suse Reynolds, AANZ Executive Director, on mob: 021 490 974 or email: suse.reynolds@angelassociation.co.nz

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The Globalization of Angel Investments

A fascinating Harvard/MIT study released in August this year and looking at the impact of angel investment on things such as firm survival, likelihood of follow on funding and employment, determines that angels have a positive impact on the growth, performance and survival of a company.

Nature and consequences of the globalization of angel investments across a variety of geographies with varying levels of venture capital markets and other forms of risk capital.

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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”