Foreign Investors, Mature Start-ups Redraw New Zealand’s VC Financing Perspective – TechCrunch

Finally For two years, the New Zealand startup scene has seen record ventures and early investment. Despite the pandemic, $ 158 million was invested in 108 transactions in 2020, with startup investment exceeding $ 100 million for the third consecutive year. According to a PwC report 2020 is also the third year in which investment has increased by more than 20% year-on-year.

“Early-stage investments as an asset class are maturing in New Zealand,” wrote Suz Reynolds, chair of the New Zealand Angels Association, a network of angel investors and business owners, in a PwC report. “The notable trend is that as early stage ventures and angel-backed ventures grow in size and require more growth capital, the size of their transactions grows.”

This increase in access to capital can be due to several factors. Even as a small country, New Zealand has a reputation for creating global companies, Vend, Seequent, Rocket Lab , Pushpay, Aroa Biosurgery, LanzaTech and Xero are attracting the attention of foreign investors investing in local VC funds or direct startup rounds such as Founders Fund, Sequoia, Horizons and Aspect Venture Partners. These exits are profitable and investors are investing in other early stage New Zealand start-ups to keep the ecosystem healthy and disruptive.

In fact, in 2020, investors provided more capital than ever before. This demonstrates our commitment to support startups as they grow, grow, and preferably withdraw. Young Company Finance transaction data ..

But one of the biggest catalysts for increased VC investment is Promote NZ Venture Fund , A $ 300 million fund of funds program to invest capital in VC companies over the next five years. We hope to see more unicorns and real success coming out of the market over the next five years. I think this will create a positive halo effect and create the next generation of founders. Probably the best-known dairy production, and as the country where the “Lord of the Rings” was filmed, it is beginning to pursue technology as the next big export, so what is expected to be the current funding situation. It is worth planning. In the future.

Note: All amounts are displayed in New Zealand dollars unless otherwise stated. Bringing Kiwi startups to the scale stage

The New Zealand Government established New Zealand Capital Growth Partners (NZGCP) in 2002 as an initiative to stimulate the early start-up ecosystem. After about 18 years of small projects, the company invented the Elevate fund. This may take New Zealand’s early start-ups to the next level today.

Elevate was released in March 2020, just as the whole world was locked down. To date, about half of $ 300 million has been invested in six VCs to close the capital gap between New Zealand’s Series A and Series B. One of the main provisions when receiving funds from Elevate is that VCs need to raise matching capital from other investors that is at least equal to the government’s commitment. The goal is to stimulate a $ 1 billion investment in New Zealand’s early-stage business, […]

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