27 Jul 2020

NZ investors eyeing up local start ups

4:04 pm on 27 July 2020

Private capital investors are looking to pump at least $1 billion into local companies and start ups over the next five years.

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Photo: 123rf

A survey by the New Zealand Private Capital Association (NZPCA) found local firms quickly recovered from the lockdown and were now eyeing up new investments.

NZPCA executive director Colin McKinnon said the recession brought on by the pandemic has created a demand for extra capital and support from companies.

He said investors were taking an interest in businesses with export potential and start ups.

"They're looking for established businesses with good prospects for growth, most of them are involved in exporting and so they're looking for an eclectic mix.

"In the venture capital space the kind of companies they're looking for are one's that are solving global issues, good technology type companies with good prospects, and they're looking to help those companies expand from what may have been previously angel investment into more formal investment."

McKinnon said investors were also looking to put money into companies that benefit the community.

"At the moment there is a strong interest in "green" types of businesses but also increasing interest in impact investing.

"These are investments that not only make a financial return but provide a social return as well."

He said the interest was driven by funds who were investing institutional money, as there was often a mandate to have socially conscious businesses as part of their portfolios.

"I think that's just becoming a little more common and an interesting space in New Zealand."

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