Every successful entrepreneur knows that turning a business plan into a profitable venture requires start up business financing. This raises the question, how do entrepreneurs across New Zealand secure this funding?
This seed capital can come from a variety of sources, such as bank loans and governmental grants, or money borrowed from a friend. These methods are becoming increasingly complicated, however.
Banks are more hesitant than ever to give out loans to newly starting entrepreneurs. Long past are the days when a bank will put faith in an individual and take a risk on a new business. Banks tend to only lend money to established businesses that can prove that they have had a successful track record. Using this kind of finance isn’t a bad method to adopt if you are already running a business that is profitable, but if you’re just starting out, you’ll likely find that banks in New Zealand are reluctant to help.
In some country grants can be an option. Especially if a government is looking to promote certain business types or industries. Grants from the New Zealand government often come in very small amounts and are only rewarded after time-consuming paperwork. Often funding from grants is only available to companies that work in certain industries such as the tech sector. In New Zealand the Callaghan Innovation grant is there for mentoring and potentially funding high growth and tech enterprises.
Much of the support that is available from the New Zealand government is more related to advice and mentorship but not financial.
Wishing to overcome these financial hurdles, a climbing number of potential business owners are looking to private investments for their initial start. By taking advantage of online investment networks, entrepreneurs can find private investors, also known as angel investors, who are willing to investment in potential businesses.
Often, angel investors wish to take a more hands-on role within the business, to ensure their investment is worthwhile. Because of their more active involvement within business, investors can share their ideas, contacts, and experience with their new entrepreneur business part, and teach them valuable business knowledge. All of this information and other investment details are listed clearly on our network under each angel investor listing.
Our angel investors are often experienced in their own sector of business and wish to connect with New Zealand entrepreneurs in similar sectors, or nearby locations. With thousands of private investors listed upon our network, in a wide selection of business sectors, entrepreneurs are easily able to connect with their angel investor and negotiate terms of investments.
Because the Angel Investor Network is global, entrepreneurs in New Zealand can find investors local to them, but also from wider afield. In fact, often business owners will find that their financing comes from overseas since many investors are looking to put money into New Zealand businesses due to the strong economy in the country.
AIN helps investors and entrepreneurs build lasting and profitable relationships to build better businesses and brighter futures.