Entrepreneurs and founders have a range of options to consider when determining how to raise funds to develop their venture.
01 / Your Options
Options for getting capital_
For many, bank loans are the best option. Many founders take out new mortgages on their house and their assets to help finance their new venture.
Many new ventures survive on backing from family and friends, ensuring that the ownership of the venture remains within a close-knit group.
If a company is producing revenues, these might be sufficient for re-investing into growth. This is termed ‘bootstrapping’.
Third Party Investors
Venture capital and angel investment is an option, if new third party capital is needed for the business. Crowd funding is a new, rapidly growing source of funding.
NZVIF itself does not invest directly into companies. We do so through venture capital funds and alongside angel investors, it is they who make the decision on which companies to invest into.
02 / Angels and Venture Capital
Considerations for investments_
Angels and venture capitalists bring significant capital, fresh perspectives and practical experience which can prove useful in developing a business. It means giving up a share of the business in return for investment and guidance.
The company stage is an important consideration for both angels and venture capital funds.
Venture capitals and angels are selective. They will look at the following:
- The age and stage of the venture.
- Can the venture scale into a large business quickly?
- Does it have unique intellectual property or a defendable competitive advantage?
- The sector – they prefer technology and innovation.
- Can they exit and achieve good returns after a period of around 3-7 years?
Venture Capital Fund
Find out more about the venture capital funds which NZVIF invests with.Fund Managers
Seed Fund Partners
We have partnered with angel networks throughout NZ who invest into start-ups.Seed Partners
NZVIF has, alongside our partners, invested into over 200 companies. Here is our current portfolio.Portfolio