Partnership to boost tech startup funds
Angel HQ and NZVIF to invest up to $8 million.
Monday, December 05 2011 || News || BY Unlimited
“We are seeing some very exciting companies emerging in the Wellington region. We want to build on this, which is why Angel HQ earlier this year formed linkages with Victoria University’s commercialisation agency, VicLink, the business incubator, Creative HQ, and Industrial Research Limited, to help drive deal flow," says Angel HQ chairman Bruno Bordignon. "But the missing factor for many startups is capital. “The partnership with NZVIF increases the available capital."
Angel HQ expects the partnership to run for four to five years, with investment in 15 to 20 companies.
The partnership with NZVIF is Angel HQ's 14th through its Seed Co-Investment Fund and the second in Wellington.
NZVIF and its partners have co-invested more than $51 million in 60 companies. It has also invested with Movac's venture capital fund launched in July.
NZVIF chief executive Franceska Banga says since her organisation began collecting data in 2006, angels have invested over $200 million in young technology companies.
“This is swelling the pipeline of young technology companies who need new sources of investment capital as they develop. This is a good problem to have. But it reinforces the need to establish new venture capital funds to complement and build on the investments being made by angel investors.”
There goes another $4m of the taxpayers' money.
Still waiting for news of all those VIF successes.
Posted by Show me the money at 12:06 on December 6, 2011
Most commentators have highlighted the lack of VC funds in NZ. How does pumping more money into the angel market help this, in fact it creates a bigger problem, greater demand for VC funds in 1 - 3 years.
NZVIF has failed in their core task - to create a VC industry, what they are doing is subsidising the angel market which was functioning OK before they came along.
Why do they not tackle that hard part - getting VC Funds established.
Posted by Anonymous at 04:05 on December 7, 2011
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