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NZ Angel Investment Flourishes

Posted by Maria Slade, NZ Herald on 6 September 2008

Wealth isn't obvious in New Zealand.

Kiwis don't generally flaunt their good fortune. They tend not to build garish palaces, drive around in rare vehicles or drip with diamonds.

So it would surprise many to hear that the Crown-owned New Zealand Venture Investment Funds (NZVIF) believes there are at least 1000 individuals in this country with enough dough to be worth tapping on the shoulder as potential "angel" investors.

In the business world, angels are the well-heeled souls who take a punt and provide capital to promising start-up businesses. They invest directly in a company, usually in exchange for an equity stake, as opposed to pooling money in a professionally managed fund.

It's high-risk investing, and angels are wealthy enough to ensure that losing the total investment would be, well, like water off their wings.

The local angel investment industry is flourishing.

While the next stage up the investment chain, venture capital, is struggling because of New Zealand's lack of institutional investors, little syndicates of active angel investors are springing up in unexpected corners of the country and looking for the next big idea.

NZVIF is about to launch a recruiting campaign to expand this celestial choir, and the newly formed Angel Association, bringing together the country's existing 15 angel syndicates, will hold its first summit on Waiheke Island in early November.

Read the whole article here.