14 Apr 2021

Venture capital flows into New Zealand startups

10:52 am on 14 April 2021

Investors are pumping big money into start-up businesses with 20 percent growth over the past year.

A stack of NZ $100 bills.

Photo: 123rf

A report prepared by PWC in association with the Angel Association indicates last year's deals were bigger, with more investment interest from deep-pocketed venture capitalists.

The report says dire economic predictions associated with the pandemic had not eventuated, and $158 million was invested in 108 deals.

"In March 2021 alone we saw two substantial Kiwi-grown technology businesses, Vend and Seequent, sold to offshore buyers," it says, with those deals accounting for about $1.5 billion of investment.

Last year, the three largest deals accounted for nearly a third of the total investment. Sharesies attracted $25m, Mint Innovation $20m and FirstAML $8m.

"Another positive trend is the increasing number of deals being led and supported by funds drawing on capital from offshore investors," it says, adding that seven deals were led by overseas

venture capital firms, and 11 deals received investment from overseas venture capital firms.

"This speaks to the quality of deal flow and increasing profile of New Zealand as a source of appealing opportunities."