Startup companies need capital for growth. Increasingly, angel investors have a role to play in providing financial backing for promising start-ups and early-stage businesses. There are a wide range of angel investment groups throughout the country, aligned with Angel Association New Zealand. Angel investors often support founders through business networks and governance.
PWC have recently released their 2023 report on Start-up Investment, providing data for the second half of 2022 on our angel and VC investment scene. They also showcase some interesting companies that have gone on to create huge impact on a global scale.
While software remains the most funded sector, receiving 45% of total funding late last year, the deep tech sector attracted 34% of total funding. Among deep tech verticals, CleanTech received the most funding with 72%, with companies such as LanzaTech (carbon recycling technology) and Zincovery (decarbonising zinc recovery) aiming to clean up the environment. HealthTech and Life Sciences attracted 13% of funding, with our privately-led Aerospace Industry attracting 12% of funding for ambitious startups such as Dawn Aerospace, Pyper Vision and Astrix Astronautics.
See Investment Sector breakdown below.
In 2021 Angel investors took part in over 170 deals, which dropped back to about 140 deals in 2022. For the second half of 2022 early-stage investors invested $118m, matched by an additional $117m of funding from Venture Capitalists (VCs).
Ecosystem support
The start-up ecosystem is there to support founders both to develop their own capabilities, and to build sustainable long term businesses. It is also important to share experiences, celebrate success stories, and learn from failures. A slowing economy means that start-up companies need to focus on fundamentals, and on growing long term value.
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