Advisory service for start-up entrepreneurs

Media release

Advisory service for start-up entrepreneurs

Sparkbox Ventures, the Auckland-based angel and venture investment group, is looking to assist technology start-ups by offering a range of advisory services to assist young companies looking to expand.

Sparkbox chairman Andrew Duff said many start-ups usually had limited experience and their prime focus is on developing their products and services.

“A serial entrepreneur will have had experience in raising investment, dealing with equity investors, and getting the optimal company structure in place. For the first time entrepreneur, however, there is a steep learning curve. It is difficult enough trying to get a new product right and to build revenue to keep the company going without having to worry about many of the associated issues involved in developing a company.

“Start-ups needing equity investment face some fairly complex issues. New investors will want to know a great deal about the company’s prospects, ownership and potential returns, and whether the investment being sought will provide sufficient capital to give it the runway to get to the next stage in its development at a significant uplift in valuation.

“Valuing a company is a complex operation and often there is a considerable gap between the start-up founders and potential investors. How investments should be structured – ordinary shares, convertible notes, or some other variant – can be complex.

“As the recent Young Company Finance Index showed, the New Zealand early stage investment market is maturing. Angel investors are investing smaller amounts, on lower valuations. In this environment, it is important that start-ups have a good understanding of the investment market.

“Sparkbox’s advisory services includes financial and strategic advice, business build and exit planning, particularly in relation to significant developments in a company's growth. It is being used by both start-ups headed by first-time and more experienced entrepreneurs.

“This can include advice on international product and service roll outs, exits and exit planning, acquisitions and mergers, patent reviews, fundraisings and capital restructurings and business growth and international market penetration expertise.

“We are actively looking for New Zealand innovation, and talented entrepreneurs with internationally scalable solutions. There are many talented innovators in this country and Sparkbox wants to surround them with the funds, experience and skills to execute to international standards.

“There are superb ideas and innovation emerging from our universities and research institutes. The key to turning these ideas into successful global growth companies is about identifying the right team, providing them the necessary skills and support and, critically, investment.”

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