Seed Co-investment Fund

FAQ

What is seed investing?

Seed investing is the term given to investment in a company at the very early 'seed' stage of its development if the investment will enable development, testing and preparation of a product or service to the point where it is feasible to start business operations.

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Who are seed investors?

Typically, seed investors are high net worth individuals known as 'angel investors'. They often form groups, known as 'angel groups'. The NZVIF Seed Co-investment Fund involves partnerships with seed investors and angel groups.

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What are angel groups or networks?

Angel investors are forming angel networks and groups to share research and pool their investment capital. They can operate as a collective of private investors who band together to increase their 'deal flow' (the number of investment opportunities they see). These groups connect high-potential start-up ventures, with willing investors to facilitate the funding and success of emerging companies.

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Is there a large seed-angel investing market in New Zealand?

The seed and angel market in New Zealand has long been predominantly informal. Over the last 2-3 years it has become increasingly vibrant with the launch of several networks modelled on similar organisations offshore. The NZVIF’s Seed Co-investment Fund has been a catalyst for the formation of formal angel networks and evolving practice standards – the Angel Investing Guide is an example. An Angel Association New Zealand has recently been established.

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What sort of businesses are suitable for seed and angel investing?

New Zealand is producing world class intellectual property in a number of areas such as ICT, life science and niche manufacturing. This intellectual property is behind the creation of a significant number of early stage companies that need angel involvement to succeed. Angel investors are enabling these companies to grow in scale and to become an increasingly strong and positive force for New Zealand's economic growth. Angel investors usually seek businesses with innovative products or solutions that have international market potential. Management capability is another key factor and founders often need to bring in experienced executives to take the business to the next level.

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How do I make contact with seed and angel investors?

You can contact us, use our links on this website, or contact the Angel Association New Zealand. If you have a business incubator in your region, they usually have close contacts with local seed and angel investors and networks. Regional economic development agencies can also be a useful source of information.

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