Entrepreneur FAQ's - New Zealand Angel Investment Network

Entrepreneur FAQ

What is the New Zealand Investment Network?
The New Zealand Investment Network is an online platform designed to connect entrepreneurs (looking for growth or start-up capital) and angel investors (looking for investment opportunities). The New Zealand Investment Network is unique in that it offers a local, national and global platform with partner networks across North America, South America, Europe, Africa, Asia and Australasia. The New Zealand Investment Network is continually growing, developing and updating its extensive database of angel investors.

What is an Angel Investor?
Originally, the term "angel" was coined to refer to the people who financed broadway plays when all else failed. Today this term has become common among the investment community to refer to a high net-worth individual that invests their own personal funds in various businesses. In New Zealand, it is estimated that there are well over 200,000 potential angel investors that annually invest approximately 500 million in New Zealand businesses and currently own over 1 billion in existing equity. This represents roughly 7% of what the banks are investing. As well, statistics show that this figure trumps that of venture capital lending. The New Zealand labour market and productivity centre estimates that angel investments have financed approximately twice as many firms as any other form of external equity investment, including institutional venture capital.

Who is a typical Angel Investor?
Angel investors are often retired entrepreneurs or executives, who may be interested in angel investing for reasons that go beyond pure monetary return. These include wanting to keep abreast of current developments in a particular business arena, mentoring another generation of entrepreneurs, and making use of their experience and networks on a less-than-full-time basis. Thus, in addition to funds, angel investors can often provide valuable management advice and important contacts.

What is the difference between an Angel Investor and a Venture Capital firm?
Angels make their own decisions as opposed to a board or group of people making a decision for investors that have pooled money together. Angels tend to be more involved in the businesses that they invest in and provide assistance in ways that venture capital firms do not. Angels typically do not own as large a stake in the company as a venture capital firm would. Another benefit of being an angel investor is the reception of certain tax incentives from investing in New Zealand controlled small businesses.

How do I know if my proposal has been received?
You will know that your proposal has been received if it appears in the list of "Active Proposals" in your member's area. If there are no proposals in your member's area then you will need to resubmit your proposal. Always write your proposal in another programme and cut and paste to avoid the page timing out.

How much does it cost?
More information can be found on Our Rates Page.

Why isn’t it free of charge?
Many people have asked us why we charge entrepreneurs for the service. Firstly we are running a commercial enterprise and don’t get any public funding, so we need to cover our admin and promotion costs, pay staff to check your submission and pay for the upkeep of the website. Secondly we are providing a valuable service to the entrepreneurs who need the much needed to support to get their ideas in front of investors. To set up a serious business with outside funding you do need to be prepared to spend some money. The fee is very low compared to other companies in the industry who will often charge around 5% of the amount you wish to borrow.

Do I have to pay for every contact?
No, the Standard, Express, Express Plus and Global Express Plus packages all give you to access to the contact details of ALL the investors who wish to contact you. Your proposal remains active for 90 days and all investor contacts are included in this period. You do not need to pay for each contact.

Why don’t you take a success fee instead?
If you think of Angel Investment Network as the funding equivalent of an online dating agency it makes more sense. You wouldn’t expect a dating agency to only get paid if and when you marry the partner you found on their site. They wouldn’t be able to find you or know you were getting married without employing a private detective! Likewise we can’t hope to individually track everyone who enters their idea over the internet. Often all we have is an email address for you. Plus we have no control over how good your idea is and therefore your likelihood of finding an Angel. There may be a few Angel groups who don’t charge upfront, but they heavily screen incoming ideas and reject about 90% of them, which means most people are left without a chance of connecting with Angels.

Why isn’t my proposal appearing in the list of recent proposals?
If you have just submitted your proposal, it is probably because we haven’t approved it yet. We have to read and activate each proposal before it is released to the investors. Alternatively it may be because you have just edited your proposal, which means that it is removed from the system until we reapprove it.

Does my company have to be established?
No, we accept projects at every stage of development – from ideas to start-up companies to mature businesses. Even if your project is still an idea, it could still be of interest to the investors. They might even have the relevant knowhow and expertise to get the ball rolling.

Is there a maximum/minimum investment?
No, our investors are interested in projects ranging from a few thousand dollars to millions of dollars.

Are the contact requests automated?
No, all the contact requests you receive are from investors who have read your investment proposal and decided they want to discuss your project in more detail.

Who are the investors on this website?
The investors on our website have been compiled from databases of angel investors, company directors and private investment groups. They also include individual investors who have registered in the hope of finding investment opportunities. Our database is continually expanding with new investors looking to invest in companies like yours.

How much information should I include in my proposal?
If you are worried about confidentiality we would advise you not to give away too many details in your proposal. Try and write enough to get the investors interested in your project without revealing the key ideas. In the "Useful Documents" page of our "Get Investor Ready" section, you will find a free NDA document, which you can get all the potential investors to sign before presenting your idea in full.

How is my privacy protected?
The site was developed using proprietary database management tools and a secure server is used to assure that no one sees your business or personal information. Your information is not offered to any third party for any purposes and is guaranteed to be kept confidential and private.

Why should I use this service?
As an entrepreneur, you are already aware of the growing resistance of banks in New Zealand to finance small business. It is virtually impossible to obtain financing without having secured assets, providing personal guarantees, etc, etc. Angel investors are the logical source to provide financing to small business. With $500 million invested annually in New Zealand and growing all the time, the main obstacle is locating and presenting your idea to this large group of investors. The New Zealand Investment Network allows an entrepreneur to:
a) Find a source of capital.
b) Find an experienced investor that can provide guidance and support.
c) Make it all come together in a fast and efficient way.

How will I attract the attention of potential investors?
When dealing with an angel investor, at the very least your proposal should address the following:
- How much money do you need?
- Why do you need it?
- When do you need it?
- What are you willing to give up to get it?
- When and how can you pay it back?
Investors need your answers to these questions before they will even consider helping you. They are not looking for "pipe dreams" or unprofessional sounding proposals. They expect a reasonably sound business plan as well as an understanding from entrepreneurs that an investor is not going to just blindly hand over significant sums of money with no strings attached whatsoever. They may be angels but there are limits to what they are prepared to do.

How can I pay if I don't have a credit card?
If you are unable to or feel uncomfortable using a credit card, you can pay by PayPal, MoneyBookers or bank transfer.

Why am I being asked to pay again?
You have to pay the Standard, Express, Express Plus or Global Express Plus Fee for every proposal you submit.

Due Diligence
Please be aware that after the initial match has been made it is the entrepreneur's responsibility to carry out diligence on the investor. Please inform us of any suspicious behaviour.

I have other questions. Who do I contact?
Contact us by email: admin@newzealandinvestmentnetwork.com

New Zealand > Auckland

$10,000 to $500,000

February 2, 2012

44 year old experienced businessman recently moved to New Zealand looking for business opportunities. Interested to invest some funds and also wants to be part of a business.

New Zealand > Auckland

$10,000 to $120,000

February 2, 2012

I am an individual investor and have extensive experience in healthcare sector but am interested in a broader range of areas for investment, I have worked in research, policy and management roles as well as in the frontline. I have tertiary and post grad qualifications. I would anticipate being a silent investor or having an advisory role if appropriate

New Zealand > Auckland

$620,000 to $10,000,000

January 26, 2012

I am 29 y.o married and currently based in Auckland. I am a Principal Financial Advisor for a Financial Agency and currently a Shareholder of a Construction Company. I have been in the Financial Industry for 11 years and have involved with a lot of Community Development Project Local and in the Pacific Island.

New Zealand > Auckland

$50,000 to $2,000,000

January 25, 2012

I have strong management capabilities and work medium to large companies at executive level. My focus is on improving business performance and profitability. I specialise in Supply Chain. I am looking for investment and business opportunities.

New Zealand > Wellington

$0 to $20,000

January 24, 2012

CEO of an IT company. MS in Statistics. Expertise in Coaching and Delivery Management. Advisory role. Individual Investor.

New Zealand > Otago

$500,000 to $5,000,000

January 21, 2012

I am a 29 year old man living in Dunedin with a bit of spare cash who is interested in entrepreneurial ideas. I would be a silent individual investor initially with the potential of active involvement. I have a trade background and have spent four years overseas.

New Zealand > Wellington

$5,000 to $200,000

January 20, 2012

I am a 24 year old living in Wellington originally from Taranaki. I have a BBS (Finance, Management) from Massey University. I am a partner of two different investment companies, one of which has 5 partners, and the other 15. Both partnerships are made up of people from varied industries and varying levels of investment experience. We are looking for hands- on, silent, or advisory opportunities to invest some of our funds. As mentioned our skills are varied from trade to professional and some partners have 40 years investment and business experience. We are interested in all ideas and are happy to accept high levels of risk for motivated entrepreneurs and ideas that we think have legs.

New Zealand > Gisborne

$1,000 to $400,000

January 18, 2012

Age, 47, Company Director and General Manager. Consider hands on or silent investment. Individual investor.

New Zealand > Auckland

$5,000 to $2,500,000

January 17, 2012

I come from a sales ,marketing and general management background and happy to be hands on or a passive investor. I have considerable experience along with associates in evaluating the needs of businesses at all phases of their life and am able to access capital as required to make them successful.

New Zealand > Auckland

$10,000 to $50,000

January 15, 2012

I am 30 years old, Currently heading an insurance brokerage managing a small team of financial advisers. Strong back ground in team management, sales, marketing and hospitality from owning cafes and managing bars and restaurants. I would like a hands on involvement in the project. I am an individual investor.

New Zealand > Wellington

$250 to $25,000

January 15, 2012

I am a young investor specialize in providing capital to start-ups. I have made my money in the online industry from affiliate marketing and e- commerce. I am looking to expand my business portfolio by investing in start-up companies and successful companies looking to grow. Previously invested in a number of businesses across different sectors. I would be happy to be involved as a silent investor in the company.

New Zealand > Waikato

$0 to $500,000

January 13, 2012

I am a married young investor with a moderate to large amount of disposable income at the ready to invest in the right opportunities which are presented. Currently I hold a MBM (Masters in Business Management from the University of Waikato) as well as a BSCi (Tech) with honours from the University of Waikato as well. I also founded and administrate a small charity called "Knee Joint Charity Trust" The amount of involvement I am looking for with any investment opportunity varies depending on the investment. I am happy to play a "silent" role or a hands-on role, depending on the situation. I have invested previously in two separate ventures, one in a hands-on role where I helped to provide the services entailed in the business and the other where I simply committed necessary funds and was rewarded with substantial profit. I am comfortable in both capacities, and whatever capacity is needed.

New Zealand > Auckland

$0 to $20,000

January 12, 2012

Single, currently finishing Bachelor of Commerce and LLB (Hons) at University of Auckland. Looking for low-value investments, with potential for high returns. Successful background in investing. Contacts available, both legal and financial. Preferred involvement low-key, advisory role.

New Zealand > Auckland

$100,000 to $10,000,000

January 12, 2012

I am a representative of some investors who would like to invest into some profitable ventures. Based on different nature of investment, I will perform the initial proposal filtering, due diligence and generate report to the investors also will participate with whole investment process.

New Zealand > Wellington

$10,000 to $500,000

January 7, 2012

I am a private investor based in Wellington, New Zealand. I have over 10 years sales experience in business to business and channel sales in the IT industry. My education includes a BCom and DipGrad from Otago University. My current investment experience is in property and stock markets. I am looking to expand my investment portfolio into NZ based business. My anticipated involvement would be advisory or silent, however I would consider an active role depending on work load required. I am interested in opportunities across all industries.

Australia > Melbourne

$10,000 to $100,000

January 4, 2012

I am 34 years. A project/programme manager with experience in both infrastructure projects & application development. I have been investing in property for a number of years & am now looking to broaden my horizons, I am an individual investor & will initially be looking to silent investment opportunities.

New Zealand > Manawatu-Wanganui

$5,000 to $20,000

December 30, 2011

I am 32 year old single with diploma in recreational management. I have experience in SAP system. At this present stage I do not wish to be a major player or influence but instead be introduced as a hands on or even silent investor.

New Zealand > Auckland

$1,000 to $10,000

December 29, 2011

39yrs, currently working as a fire technician. I have worked in management positions and also run 2 successful businesses. I believe with my management and b2b sales and business development skills. I am able to help entrepreneurs avoid common pitfalls and find their niche in the market place. I would like to invest in either a hands-on or advisory position.

New Zealand > Wellington

$100,000 to $5,000,000

December 20, 2011

54 years, Single. Bachelor of Science with majors in Accounting and Associate of Science. Certified Management Accountant. Previously invested in the education sector. I am working in a reputed organization, willing to be involved as hands on silent investor in the business.

New Zealand > Canterbury

$10,000 to $200,000

December 20, 2011

I am an individual ready to venture into a private equity investment of an existing business that requires capital to expand & develop. I can bring assistance in either hands-on or advisory in sales, marketing, accounting, strategic planning & management. My experience is primarily in technology, communications & security where I am currently employed as the GM for a current investment. I have total flexibility & will equally consider all industries for investment. I look forward to working with a prospective entrepreneur with a view to a friendly working partnership & mutual financial benefit.