Angel investors amalgamate to boost business startups
The amalgamation of South Island angel investment organisations is expected to provide a super boost to business start ups across the south.
Mainland Angel Investors (MAI), which covers Southland and Otago, and Canterbury Angel Investors are combining forces.
The not-for-profit organisations provide forums for start up companies seeking capital to pitch to investors who invest in the company under a nominee company.
Mainland Angel Investors board chairperson Brad Hurndell said the southern group launched in 2020 as a collaboration between Startup Dunedin Trust, Coin South, and Startup Queenstown Lakes.
It now had a portfolio of 10 investments worth $1.5 million, the majority being local investments such as Queenstown tech businesses First Table and Loaded.
It also supports business who have not secured funding, such as Invercargill-based software company PaySquad.
The opportunity to join with the Canterbury branch of angel investors would open new opportunities with the population of a major city and its research and development, technology and educational opportunities, he said.
Canterbury Angels chairperson Paul Claridge said the idea of amalgamation was “love at first sight”.
The organisation had been operating since 2015 and invested about $2.6m in 20 companies since. Among its success stories are document collection and management platform FileInvite and powdered super food producer Nutrient Rescue.
The organisation saw great value in joining the Mainland group, he said.
“We were really attracted to the model that they’ve developed and they’ve got good people.
“They’re really proven with good systems operating and really good support,“he said.
The amalgamated organisation would be able to write bigger cheques, and provide more experienced mentors, advice and support for budding start ups.
“It just made absolutely really good sense right from the start,” he said.
The amalgamated organisation is also getting a financial boost from Christchurch NZ, which is funding a full-time operations manager based in Canterbury.
Queenstown-based MAI network manager Peter Ramsay was delighted and said the process to hire the new staff member was already under way. “We’re pretty excited to have more support and resource,” he said.
The combined membership of investors for the new group so far was 102, with about 40 coming from the Canterbury group, and that was expected to grow after the official launch later this month.
The group would adopt the pitch model developed by MAI, which included regular events where new businesses pitched for investment to those who attended in person, and was live streamed to other members.
A question and answer session gave investors further insight into the businesses and their people.
MAI board member and chief executive of Invest South Prue Halstead put forward the amalgamation plan.
She wanted to ensure businesses in the South Island had the same opportunities from a capital resources and a capability profile as those in Auckland and Wellington, she said.
There was already a massive level of support and commitment from Southland investors, she said.
“A number of them are at the point where they want to give back and this is a really great way for them to diversify their portfolio and learn a little bit about what is going on.”
The angel programme democratised and demystified early stage investing, she said.
She was really excited to be joining with Canterbury and for the economies of scale available through a bigger network.