Seed Co-investment Fund

Angel Investing

NZVIF has launched a campaign to attract investors to ‘angel investing’ – the term given to wealthy people investing in early stage businesses. Investors are known as 'angels' because they invest not just money but also advice, knowledge and experience to help start-up businesses to grow.

Angels are, typically, ex-entrepreneurs and successful business people looking to add early stage companies to their investment portfolio. They enjoy the challenges of growing new businesses and being part of an exciting venture, as well as the financial rewards from investing. They provide not only governance by serving on boards, but also assisting companies with relationships, strategy, team building, and future fundraising.

Angel investors are exposed to high rewards and high risks, and expect that some investments will fail. If an angel invests in ten companies, the general rule is that four will fail, three will tread water, two will return 2-5 times the initial investment, and one will result in a return of five to ten times the original investment over a 5-10 year period, generating an overall healthy return across the portfolio.

Increasingly, angel investors are forming angel networks and groups to share research and pool their investment capital.

There are around 15 established groups in New Zealand. They include:

  • Angel HQ
  • AngelLink
  • CureKids Ventures
  • ICE Angels
  • K One W One
  • Manawatu Investment Group
  • MOVAC
  • NZDx
  • Pacific Channel
  • powerHouse Ventures
  • Sparkbox
  • Upstart Angels
  • Venture Accelerator

There are also other informal networks which operate in a similar way to established groups.

NZVIF assisted with the establishment of the Angel Association New Zealand – the industry organisation representing angel groups. The Association advocates for and promotes best practice within the angel investment sector. NZVIF and the Angel Association are developing an angel education programme. Seminars are being developed on the 'Power of Angel investing' and 'Demystifying Angel Investment'. These seminars will be delivered as part of a national education and recruitment road show in partnership with angel investor networks.

For more information on angel investing, see The Business of Angel Investing in New Zealand: A Guide.

Potential angels can email angels@nzvif.co.nz.

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