Fund The Herd

Opinion Piece by Darren Ward 
Founder, Voluntas Elevate

New Zealand’s economy has forever thrived on its natural assets — our breathtaking landscapes and fertile land that power tourism, agriculture, and dairy exports. But the global economy is changing, driven increasingly by innovation and technology. If New Zealand is to remain competitive and prosperous, we must move beyond our traditional strengths of suntans and milk powder.

New Zealand is an emerging hub for innovation, and we must shake off the ‘emerging’ moniker. With the right moves, New Zealand can be an innovative tech powerhouse where start-ups are nurtured and developed. They will lead our transition to a land- and knowledge-based economy.

The Vision

The global fascination with unicorns — start-ups valued at over a billion dollars — has distorted the perception of success in the innovation ecosystem. I believe this government, like me, understands that this focus risks sidelining scalable, profitable businesses that collectively drive substantial economic growth.

It’s time to realise the vision of cultivating herds of successful start-ups. We’re in agreement that these ventures will, though individually smaller, create jobs, increase export revenue, and establish New Zealand as a leader in technology and innovation.

Our start-up ecosystem is failing many of its innovators despite its potential. Securing pre-seed capital remains a barrier, with many investors hesitant to back ventures without proven traction. Compounding this, the venture capital (VC) model disproportionately focuses on identifying unicorns instead of supporting a portfolio of scalable businesses.

To realise our shared vision, New Zealand must reimagine its funding and support structures and here’s a roadmap to do it in three steps.

1. Increase Accessibility to Pre-Seed Capital 
   Establish collaborative pre-seed funding models between the government, private investors, and financial institutions. These funds lower entry barriers, prioritising the potential of ideas and the quality of founding teams over immediate revenue.
2. Develop Innovative Debt Funding Mechanisms 
   Introduce debt financing options such as revenue-based financing or venture debt tailored to start-ups. These mechanisms offer founders flexibility without diluting their ownership, filling gaps left by equity-based funding models.
3. Build Comprehensive Ecosystem Support 
   Funding alone is not enough. Founders need access to mentorship, talent, and infrastructure. Initiatives should pair founders with experienced operators who understand the complexities of scaling a start-up. Programmes should emphasise hands-on support in business development, customer acquisition, and international expansion.

Small nations like Singapore and Estonia have shown that size is no barrier to start-up success. Estonia, in particular, has leveraged digital transformation and streamlined business processes to create an environment where start-ups flourish. Estonia has paired this international focus with accessible funding and strong public-private partnerships because its small domestic market pushes companies to think globally from the start. The similarities aren’t lost.

Closer to home, initiatives like our Voluntas Elevate are paving the way for a more inclusive and supportive ecosystem. This strategic advisory firm is dedicated to underserved tech founders, offering services in growth, scaling, planning, governance, capital acquisition, and talent development. It catches the organisations that don’t fit the 10x to a billion dollar unicorn model.

To date, Voluntas Elevate has supported 12 clients, is raising NZ$11.3 million for nine ventures, and holds equity in just three companies. With an average capital raise of US$1.25 million, it demonstrates that strategic support enables start-ups to achieve sustainable growth while maintaining founder equity.

The Stakes 

Without change, New Zealand risks economic stagnation and reliance on low-margin commodities and volatile tourism. We will lose our brightest minds to overseas opportunities, leaving our innovation potential unrealised.

The path forward is clear, and it relies on funding. We urge New Zealand government to champion the following initiatives:

• Expand pre-seed funding accessibility through public-private collaborations.
• Develop debt financing options to provide non-dilutive funding for start-ups.
• Strengthen ecosystem support through mentorship and hands-on development programmes.

Together, we can create a New Zealand where every founder with a great idea has the resources and support to succeed. Let us embrace this moment. Let us nurture the herd and make innovation New Zealand’s greatest export.

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