Hawkes Bay Angel Summit deemed a success for national and international attendees

The Angel Association of New Zealand’s annual Angel Summit in Hawke’s Bay last week was “brilliant” in every way, says executive director Suse Reynolds.
“The weather was gorgeous, the food was gorgeous and the people were wonderful,” she said.
She said it was a very productive two days for the 120 delegates, with some of the key issues being collaboration, the importance of New Zealand Inc and balancing investment with return – the conflicting need for return on investment with wider economic/social goals.
She said the Black Barn venue helped foster good relations between attendees.
“Business is all about people and it is important to build the foundations of trust.”
Angels flew in from throughout New Zealand and overseas.
“The New Zealand Angel Summit has a reputation for being the world’s best angel conference destination. Last year when we had it in Queenstown we had 50 international visitors from a dozen different countries. We didn’t quite manage it this time around because last year’s was the Asian business angels forum and this year we were back to our New Zealand Angel Summit, but we still had Australian’s Chinese, Americans, Canadians and one Skyped-in from Zurich.”
Summit activities included an address from Economic Development Minister Steven Joyce, a visit to Rockit Apples’ packing shed and a dozen investment-related presentations.
One of New Zealand’s most prolific angel investors, Trevor Dickinson, was awarded the prestigious Arch Angel Award in Hawke’s Bay, which recognises individuals who have “steadfastly championed the cause of angel investment and investors”.
He has made more than 50 investments in early-stage and startup companies – the vast majority of which are angel-backed firms from throughout the country. He is on the board of Wellington-based angel investor network Angel HQ, and received the organisation’s first lifetime membership based on the value of his investments made through the group.
Angel HQ manager Dave Allison said his contribution to the angel investment community was marked.
“The energy and enthusiasm he brings is extraordinary, whether it’s on the boards of companies, or advising entrepreneurs, or making deals happen by bringing people together,” he said.
The English-born former geologist worked in the UK oil and gas industry before mortgaging his house to develop state-of-the-art measurement-while-drilling technology.
GeoLink success allowed him to retire to New Zealand where he was a founding investor in startups including Lightning Lab, Wipster, HydroWorks, Nyriad, Cloud Cannon, 8i, Flick Electric and Times-7.
Former Arch Angel winners also include The Warehouse founder and long-time angel investor Sir Stephen Tindall and Andy Hamilton, chief executive of Auckland-based incubator and business educator The Icehouse.
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Simon Brown: Entrepreneurs and investors descend on Hawke’s Bay

For two days last week the Black Barn Winery in Havelock North was the focus of the world’s venture capital and angel investor communities.
Entrepreneurs and investors from New Zealand, Canada, North America, China and Europe spent last Thursday and Friday at the 2016 NZ Angel Summit discussing investment strategies, sharing their expertise and creating opportunities for innovative Kiwi start-ups in need of early stage finance.
These were some of the most successful investors in their field. People like North American business and equity finance consultant Ross Finlay, who has come to New Zealand with the support of Callaghan Innovation to help local businesses understand what Angel Investors expect from them, to show them how to establish relevant relationships and introduce them to North American and NZ Angel networks.
Ross has secured 35 Angel investment deals in recent years and has assisted in the development and review of countless business plans for start-up companies.
He has extensive networks within the world of international finance and he knows how to leverage them for the greater economic good.
Hawkes Bay’s stunning environment was a bonus for local and international financial high flyers like Ross but they weren’t here primarily for the scenery. These were all seasoned and experienced business people who have made their money in a range of sectors.
Naturally, they’re looking for a return on their investment but they’re also motivated by a desire to help others with the same drive and ambition they have and, crucially, to do their bit to grow the New Zealand economy.
Government ministers and officials, colleagues from Callaghan Innovation and the nationally located business incubators also attended the summit.
They came away with re-enforced enthusiasm and confirmation of the optimism and dynamic evolution in this fast growing sector of our economy.
Last financial year was a record breaker in terms of deals made with Kiwi start-ups and dollars invested.
Deals worth a total of $61.2 million provided 92 creative and passionate New Zealand entrepreneurs with the kick start they needed to get their great idea off the ground. In addition to this investment, Callaghan Innovation supported 152 start-ups through incubators.
That’s an unprecedented deal flow and a strong indication that NZTE’s Investment Showcase events and Callaghan Innovation’s incubation funding and accelerator programmes are bearing fruit.
New Angel regional networks are forming. Syndicated Angel funds are proliferating and long standing networks are experiencing a surge of interest. Wellington’s Angel HQ, for example, has gained 30 new members in just the last six months.
Increasingly businesses are successfully exiting the start-up phase of their journey but still face challenges in accessing growth capital and appropriate commercialisation expertise. International capital exists but the New Zealand eco-system is looking at how it can work better together to facilitate the access to it.
We’re doing great but we can do better. Investment in research and development in New Zealand still lags behind OECD countries. Areas like SaaS, FinTech, AgriTech and other areas of the digital sectors are doing well but there are also great ideas brewing in MedTech, BioTech and food and beverage production.
A few of those could well be the disruptive industries we need to take New Zealand and the world into a healthier and wealthier future.
– Simon Brown is general manager accelerator services of Callaghan Innovation

First published – NZ Herald 6 November 2016

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‘The jockey’ key for angel investing

Investing in high growth companies is like a long horse race and understanding the jockey you’re betting on is key for angel investors, says veteran Canadian angel investor Ross Finlay.

Finlay, co-founder and director of the First Angel Network Association in Atlantic Canada, is one of the international speakers at the annual Angel Summit in New Zealand underway in Napier.

He said before angels commit their money they have to pick the right jockey and the earlier stage the company is, the more that matters.

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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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New Zealand’s need for growth capital

As early stage investors we need to start getting real about the wisdom of our backing early stage, high growth ventures without far more consideration being given to where we source follow-on growth capital.

Even if we only look at last year’s New Zealand Venture Investment Fund’s seed co-investment data where about $50million was invested in early stage companies, the growth capital required for this cohort of companies is likely to be 10x this figure. So we are talking about finding $500m.

This is not just a problem for the investors in these companies; it’s a problem we need to grapple with in partnership with the government and the institutional investment community. These high growth companies are the engines of our economic growth. We can’t afford to drop the ball.

The development of an innovation led economy is widely accepted to take place over three ten-year horizons. We are coming to the end of ‘horizon one’ where the focus has been on inputs. New Zealand has done well here. The number of startups, early stage investors and dollars being invested has trended upwards over this period.

In the second ten-year horizon we should start to see outcomes from these innovation led companies in the form of jobs, export and tax revenue. But to generate these outcomes and see the true benefit of this investment, we need growth capital. Only then will the third horizon truly deliver in the form of financial returns and recycled capital and ultimately higher standards of living.

As I’ve just mentioned, there is no shortage of deal flow. The quality of that deal flow is improving every year too. This is in large part due to Government support for initiatives such as the Lightning Lab and the investor-led Tech Incubators. It is also a result of work others have done to upskill our entrepreneurs and angel investors.

To date, angels and other early stage investors have been able to fund the early growth of the companies meeting their criteria. We have been investing in startup, high growth ventures in a targeted sense for about 8 years but the really exponential upswing in investment has taken place in the last 3-4 years.

Quite logically, there is therefore an increasing and pressing need for growth capital in New Zealand.

This is illustrated in the recently released NZVIF data showing most investment is into existing deals. Angels are having the stay the course longer and dip back in their pockets for capital it could be argued should be coming from deeper more experienced pockets.

We need to give credit to those venture capital firms raising funds to meet the need for growth capital such as Movac’s Fund 4, the $40m fund GD1 is working hard to raise and the $40m fund raised by Oriens Capital. But it is not enough.

Closing the “growth capital gap” is going to need New Zealand’s pension and other institutional funds to broaden their investment mandates to allocate at least 3-5% to the growth needs of our high growth, early stage companies. We must support work Immigration NZ is doing to inject capital from experienced high network migrants into these companies. We need to tap into our rural and regional wealth more effectively. We have therefore been delighted to see angel networks forming in Taranaki and Marlborough reflecting an increasing awareness that high growth, tech based companies can be the source of future jobs and social and economic wealth in the regions. The banks also need to come to the party.

There is a great deal at stake here. We can’t afford “a hands off, market forces will deliver” approach. If ever a NZ Inc approach was needed, it is now.

Marcel Van Den Assum
Chairman
Angel Association New Zealand

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What do angels need to grow early stage investment industry?

We have interviewed Nelson Gray at the Asian Business Angels Forum and AANZ Summit 2015, in Queenstown. Nelson Gray is an educator, angel investor, mentor, fund manager, and non-executive director of the Scottish Angel Capital Association.

Nelson Gray explains what investors need to understand in order to get support to achieve successful exits and grow the early stage investment industry.

You can meet a quality network of investors and experts in early-stage company growth, acquisition and exits in person by registering your place at the 9th Annual NZ Angel Summit 2016.banner NZAngelSummit16

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Follow-on investments

During the Asian Business Angels Forum and AANZ Summit 2015 we talked to Nelson Gray, educator, angel investor, mentor, fund manager, and non-executive director of the Scottish Angel Capital Association.

In this interview Nelson Gray talks about what angel investors should know about follow-on investments.

 

You can meet a quality network of investors and experts in early-stage company growth, acquisition and exits in person by registering your place at the 9th Annual NZ Angel Summit 2016.

banner NZAngelSummit16

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What is great about NZ angel community?

The following interview with Nelson Gray, non-executive director of the Scottish Angel Capital Association, was conducted at the Asian Business Angels Forum and AANZ Summit 2015.

Nelson Gray talks about what is great about the New Zealand angel investment community and what New Zealand can do better.

You can meet a quality network of investors and experts in early-stage company growth, acquisition and exits in person by registering your place at the 9th Annual NZ Angel Summit 2016.

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Engaging young people

We have interviewed Nelson Gray at the Asian Business Angels Forum and AANZ Summit 2015. And in this video Nelson Gray tells us his toughts on the role of angels in engaging with young people.

You can meet a quality network of investors and experts in early-stage company growth, acquisition and exits in person by registering your place at the 9th Annual NZ Angel Summit 2016.

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The role of government in angel investment

The following interview with Nelson Gray was conducted at the Asian Business Angels Forum and AANZ Summit 2015.

Nelson Gray talks about how important is the role of government in angel investment.

You can meet a quality network of investors and experts in early-stage company growth, acquisition and exits in person by registering your place at the 9th Annual NZ Angel Summit 2016.

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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”