ANALYSIS: Former VC investor Andrew Chen drew more than 100 comments on a controversial article ‘New Zealand startup valuations are too low. We should fix that’. Shoeshine identifies 10 fixes that could help.
WATCH: NBR senior journalist Fiona Rotherham speaks with Maria Slade.
What’s at stake: Data show NZ startups are undervalued compared with their overseas counterparts by between 53% and 70%. But what is the fix?
Background: The median deal size for a Series A round by Kiwi startups is $10.4m compared with $15.4m by their global peers. Those that have struggled to raise money get more heavily diluted by lower valuations and lack resources for growth.
The players: VCs, startups founders, NZ Growth Capital Partners.
Bio-pharma startup founder Cynthia Hunefield commented “it’s bloody brilliant” on reading Andrew Chen’s recent LinkedIn post on New Zealand startup valuations being too low.
Based on Pitchbook data on seed, Series A, and Series B raises from July 2019 to July 2022, valuations for New Zealand
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What’s at stake: Data show NZ startups are undervalued compared with their overseas counterparts by between 53% and 70%. But what is the fix?
Background: The median deal size for a Series A round by Kiwi startups is $10.4m compared with $15.4m by their global peers. Those that have struggled to raise money get more heavily diluted by lower valuations and lack resources for growth.
The players: VCs, startups founders, NZ Growth Capital Partners.
