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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Movac Fund 4 reaches first close at $105 million

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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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Movac fund gets $20 mln from NZVIF as govt mulls its future backing

Wellington fund manager Movac has secured a cornerstone commitment of up to $20 million from the government-backed New Zealand Venture Investment Fund for its new capital growth fund, which aims to raise between $80 to $100 million from Kiwi investors.

Movac’s previous funds have invested in some well-known and promising local companies such as Trade Me, Green Button, PowerbyProxi, and Aroa Biosurgery.

It’s the second time NZVIF has invested into one of Movac’s funds, having previously invested around $14 million so far of a $16.5 million commitment to the manager’s third fund.

Read more

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Angels help skincare pioneer fly

Early investment allowing Zeosoft to prove product claims has helped secure backing for international leap.

Patience and a lot of persistence have paid off for natural skin cleaning company Zeosoft after it gained significant backing from the Bay of Plenty’s Enterprise Angels and early stage investment group Movac.

Soft zeolites, formed from volcanic activity and mined near Tokoroa are the key ingredient of Zeosoft’s products.

“It’s a very unique ingredient. And we’re the first to patent its use on skin,” said Zeosoft chief executive Phil Connolly. “Thanks to our initial investment from Movac we’ve now got independent proof of the power of soft zeolites to remove contaminants, including heavy metals and toxins, and help repair skin, while still being soft and dermatologically safe.”

Movac first invested in Zeosoft in 2010 to help the company’s founders prove the power of their innovative skin-cleaning ingredient. It was this research that helped seal the deal for the Bay of Plenty angel investors, says Movac’s Mark Vivian.

Zeosoft raised $8 million in this latest funding round and plans to use the capital to fast-track its way into international markets.

It currently manufactures heavy-duty hand soap, everyday handwash and household cleaners, with personal care, cosmetics and derma product on the cards. Its initial targets are the automotive and engineering industries in Britain, Europe and the Middle East.

To try to speed its way it has joined forces with global leaders Unilever and Stevenson’s Group for product formulation and development.

“Nutting out these relationships is key for us. Everything’s on a completely different scale in the UK, so any mistake is accentuated,” Connolly said.

Vivian said he had high hopes for Zeosoft.

“They’re making excellent progress in the UK market where there’s growing consideration among industrial organisations about the impact products have on their employees, customers and the environment.”

Strong relationships between New Zealand’s angels and early-stage investment companies like Movac were crucial for ensuring Kiwi companies got enough funding to grow, Vivian said. “There are always going to be natural ups, downs, surprises and successes that go with being invested in any early-stage company, but the more experienced people the business is able to surround itself with, the better.”

Enterprise Angels executive director Bill Murphy agreed: “What Zeosoft highlights is there is an increasingly strong early-stage investment network in New Zealand where deals, due diligence and investing are often shared.

“This leads to more capital and more opportunities for promising young companies.”

Produced in conjunction with the Angel Association of New Zealand.

First published on nzherald.co.nz 17 July 2014

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Movac powers up PowerbyProxi

PowerbyProxi is a capital-hungry hard-tech start up. So what convinced Movac this one was a good bet?

Apart from his electric toothbrush, David Beard says he knew nothing about charging wireless devices. But when he and his partners at angel and growth capital investment firm Movac encountered PowerbyProxi in 2008, they quickly recognised the commercial applications for wireless charging and realised they’d remained unexploited for too long.

When you’re working in the field you can’t drape cables everywhere to power machinery or connect wirelessly, as you can to the internet, to power your devices. So PowerbyProxi’s founders set about finding ways for devices to be unplugged from their source of power in hostile industrial environments, without resorting to unreliable cables, using a process called electromagnetic induction.

The brains behind PowerbyProxi is Fady Mishriki, who studied wireless power at the University of Auckland. Initially his focus was on miniaturising the technology for consumer electronics. But after meeting serial entrepreneur Greg Cross through the University’s business incubator, The Icehouse, this changed when the two discovered the amount of capital required and the number of potential competitors trying to do something similar.

“He was dead-set on building a technology company based on the University’s heritage in wireless power research,” says Cross of his co-founder. “Over the past 30 years the university has done more research on wireless power than any other organisation in the world. The IP portfolio and availability of world-class engineers provides us with what I refer to as unfair competitive advantage on the global stage.”

After a lot of market research Cross and Mishriki decided to join forces in 2007 and focus on the less competitive industrial market. But to get the company off the ground and up and running quickly, Cross and Mishriki needed investment, so Cross approached Movac.

“We took a reasonable amount of convincing that this technology was able to solve a large number of industrial and consumer problems,” Beard admits of Movac’s first meetings with Cross and Mishriki. “It was really more about execution than that the technology might be useful.”

Cross’s involvement certainly helped; Movac’s partners had met him at the entrepreneurs’ conference Morgo and had dealt with him on a previous venture he’d sought to fund. But Beard and Phil McCaw, Movac’s managing partner, recognised PowerbyProxi wasn’t just a technology startup; it was a ‘hard-tech’ – hardware products, not just software – startup. “Hard-tech companies require at least $5 million to $10 million to make them successful on the world stage,” says McCaw. That meant PowerbyProxi wasn’t suited to a typical angel investment scenario and was going to require significant support upfront and for the long haul. There just aren’t that many individual investors in New Zealand who’d invest such a large sum in a single, high-risk venture, says Beard.

What intrigued McCaw and Beard in their early conversations with Mishriki and Cross, however, was the discovery that Auckland University’s School of Electrical Engineering was a world-leader in wireless power technologies. “They realised the University of Auckland research, led by Professor John Boys over the last 20 years, gave us a hard competitive edge on the global stage,” says Cross.

Movac backs PowerbyProxi

Movac began backing start-up opportunities in 1998, funding its way with the help of cash generated from its founding partners’ day jobs in management consulting. Its first big success story was Trade Me, which allowed McCaw and his partners to turn their part-time passion into a full-time venture.

In 2005 Movac began putting together their second seed investment fund and used this to invest in PowerbyProxi. “We made about 16 investments out of that fund,” says McCaw.

Since then Movac’s participated in a further three investment rounds in PowerbyProxi from its third, later stage, growth capital fund, Fund 3, giving it both a seed fund interest and a venture fund interest in PowerbyProxi. For companies to succeed, ideally they need to raise more capital than they need at each capital raising, says Beard. “It stops you having to put your business in ‘minimum burn’ mode while you rattle the cup around again. That’s terribly distracting to a company and its growth aspirations.”

Movac began backing start-up opportunities in 1998, funding its way with the help of cash generated from its founding partners’ day jobs in management consulting. Its first big success story was Trade Me, which allowed McCaw and his partners to turn their part-time passion into a full-time venture.

In 2005 Movac began putting together their second seed investment fund and used this to invest in PowerbyProxi. “We made about 16 investments out of that fund,” says McCaw.

Since then Movac’s participated in a further three investment rounds in PowerbyProxi from its third, later stage, growth capital fund, Fund 3, giving it both a seed fund interest and a venture fund interest in PowerbyProxi. For companies to succeed, ideally they need to raise more capital than they need at each capital raising, says Beard. “It stops you having to put your business in ‘minimum burn’ mode while you rattle the cup around again. That’s terribly distracting to a company and its growth aspirations.”

McCaw says Movac is committed to PowerbyProxi “for the long haul” and it will need that tenacity: Cross’s vision for PowerbyProxi is to build a company that puts wireless power on every surface in every room of every home and office.

“Export or die,” the words of Waikato businessman and founder of Trigon Packaging Bill Foreman resonate with the PowerbyProxi co-founder. “

Cross and Movac’s considered and ambitious risk-taking in PowerbyProxi is already starting to pay off, with listed US electronics firm TE Connectivity announcing it was taking a near 11% stake in the company in April as part of a $5 million capital raising to help the company accelerate sales. TE Connectivity’s industrial division in Germany has already helped PowerbyProxi take its ARISO contactless connectivity platform to Market.

“Entrepreneurs not bureaucrats are the one who will unlock the commercial potential of New Zealand’s top researchers,” says Cross.

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IndieReign – something really clever

Independent film distribution company IndieReign began life as Reel Clever, a basket of online tools designed to help film-makers connect and market their wares within the industry. But after talking to customers, founder and chief executive David White realised the real pain in the industry was distribution.

Enter IndieReign, an online distribution platform that taps festival films and delivers them to your living room.

White and his team, and Phil McCaw of angel investment company Movac, have invested $300,000 of their own money developing the company’s technology, building initial networks and testing the concept.

White has already secured three-quarters of the funding he was seeking after, very unexpectedly, signing up three Silicon Valley investors while he was tying down a San Francisco film festival deal. He met the investors through both McCaw’s connections and the Government-backed Kiwi Landing Pad in San Francisco.

Full story first published in the New Zealand Herald on Friday November 23 2012

Read more from NZHerald

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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

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AANZ Summit Sponsors

Callaghan Innovation “UniServices” Kiwinet “Spark”