New Zealand-based entrepreneurs looking to start their own business often need some sort of funding in order to help their ideas get off the ground. In some cases, the entrepreneur might already have funds and be able to use their own savings to start the company. But more often a loan is needed. Unfortunately, in New Zealand, banks are less likely to give a loan to a new company that has yet to establish a credit line (and perhaps even less so in the current global market turmoil).
This is where Angel Investors (also known as Business Angels) come into play. These are either individuals or groups of people who are looking to make an investment. With current stock markets becoming a roller coaster ride, many more investors in recent months have looked for businesses to invest in. They find interesting new businesses and entrepreneurial ideas around New Zealand, and then form a sort of business partnership with them by investing their own capital in the idea. Some investors may want a hands-on approach, and usually provide the benefit of good advice and a long list of contacts that may help your business reach the next level. On the other hand, some may just want to be ‘Silent Business Partners’ – who invest in the company strictly for a set amount of returns within a set time period. Of course, the investor has to really believe in your idea in the first place.
Most Angel Investors are based in the US and Europe, but over the past few years, many angel investor groups and networks have formed in New Zealand. The New Zealand government also has helped these investments progress, with recent initiatives such as the Seed Co-Investment Fund, where they also act as a passive co-investor.
This branch of the Angel Investment Network (New Zealand Investment Network) connects hundreds of angel investors based within New Zealand, with entrepreneurs based both in New Zealand and internationally. We are an online community that gives entrepreneurs the ability to generate funding for their business, while angel investors can find investment opportunities.
There are some great opportunities for business and entrepreneurship in New Zealand. Major cities include Auckland, Christchurch, and Wellington. If you’re looking to start or invest in a tech or dot com start-up then these are the three most likely locations for this kind of business.
When it comes to popular industries in New Zealand, agriculture, horticulture, and forestry are three of the biggest industries in the country. If you’re thinking of creating a start-up in one of these industries, you may find that there will be some competition since these sectors are so popular. On the other hand, these are proven and successful industries that the country is well known for.
Many angel investors who have experience in agriculture and similar industries flock to New Zealand looking for new businesses to invest in that are leveraging these popular industries.
Other industries that are attractive to Angel Investors, that New Zealand is well known for is fishing and tourism. Again, start-ups working in these sectors tend to have little problem finding additional investment just as long as their business idea is sound and has the potential to turn a good profit.