Record angel investment activity for the first half of this year is at odds with continuing post-financial crisis gloom.By the end of June, $31 million was pumped into young companies by angel investors. In the year to June, $52.2 million has been investe
Record angel investment activity for the first half of this year is at odds with continuing post-financial crisis gloom.
By the end of June, $31 million was pumped into young companies by angel investors. In the year to June, $52.2 million has been invested, which is about 25% up on the 12 months to June, 2009.
The calculation for the first six months of this year is also record breaking since the Young Company Finance Index began in 2006. Since the index started, more than $160 million has been invested in young companies by angel investors.
Government-owned New Zealand Venture Investment Fund chief executive Franceska Banga said the increase was attributed to the growth in angel groups and investors in recent years.
“Angel investors are making new investments but also supporting existing investee companies as they grow,” she said.
“As more companies are invested into, more companies are receiving follow on investments, providing a snowball effect.”
More than 40% of angel funds during the first half of the year were first rounds of investment.
Since the index began, nearly half of the $160 million has been invested in Auckland, 17% in Wellington, 11% in Christchurch and 8% in Dunedin. Hamilton and Palmerston North together attracted 11% of all angel investment.
Unsurprisingly, software and services received more than a quarter of angel investors’ interest with a similar share directed at pharmaceuticals and life sciences technology.
