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5 important things about raising tech company capital in NZ
Five important things about raising tech company capital in NZ
by Bill
Bennett
September 4, 2013
http://www.digitl.co.nz/574/raising-capital-tech-nz/
From the outside, raising capital for technology start-ups seems harder than elsewhere in the world. In truth, it isn’t more difficult, just different.
This week’s Moxie Sessions on capital for technology companies revealed five key points. Few of these are widely discussed at the moment. Let’s change that:
• While the rest of the world turns to formal sources of capital investment and less formal sources such as crowd-funding, New Zealand’s start-ups typically use informal funding sources. This has positive and negative implications.
• New Zealand Angel investment is immature by international standards. Local angels typically have unrealistic expectations and often ask too much of entrepreneurs.
• Despite the common perception, there is no shortage of investment capital in New Zealand.
• The most appropriate role model for New Zealand’s start-up technology sector is not Silicon Valley or Australia but Israel.
• Sophisticated investors look for evidence a business is gaining traction, particularly in overseas markets. They also want to see clear proof the idea behind the business works in the market.
That’s the headline material. You’ll find a fuller report from Vaughn Davis later this month at the NBR (here’s a link to his last Moxie report) and there will be a podcast at the Moxie Sessions site.
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Geekzone and Scoop
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into Punakaiki Fund
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2014
ENDS
Bill Bennett
Freelance journalist.
Auckland-based Bill Bennett writes technology and business stories that are directly relevant to New Zealand readers.
His emphasis is on telecommunications, but he also covers other aspects of technology and business. You can find his features in the New Zealand Herald and hear him regularly on RNZ Nine to Noon and the NZ Tech Podcast.
Bennett's The Download Weekly newsletter is published every Friday. You can sign up for it here.
If you want to support his work, you can make a donation to his PressPatron account.
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