industrialwhoswho

2010 was a record year for venture capital in New Zealand. Startups there received over $50 million in early stage investment capital in over 100 deals. The figures are a vote of confidence, but whether this level of investment can continue will depend on how many new investors the country's angel investment groups can attract.

New investment feeds the pipeline, because when capital is constrained the first sector to get cut off is usually new companies. The trend towards VC cooperation through syndicated deals is being promoted by investment funds as all the evidence from abroad points to this being the most successful investment model. Syndication mitigates the risks while allowing investors t o come in who may not be as familiar with a sector, but are interested in investing in growth companies.