Startup investments in New Zealand rose to $157 million by the end of last year, up substantially from $20m in 2006. The latest Startup Investment Report from PwC and the Angel Association (AANZ) shows that last year investors provided more follow-on capital than ever before, with 56 percent ($109m) of all investment being follow-on capital.
PwC Partner Anand Reddy says the commitment and result is heartening.
“This time last year, we were considering what impact Covid-19 might have on the world of startup investment and the importance of backing startups through periods of uncertainty. A year later, and the startup ecosystem has demonstrated not only its resilience but an increase in maturity,” says Reddy.
Suse Reynolds, Chair of the Angel Association, says that early-stage investment as an asset class is maturing in New Zealand.
“A noticeable trend is that deal sizes are getting larger as early-stage ventures and angel-backed ventures scale and require larger quantums of growth capital. This is a trend we expected, and we are pleased to see.
Reddy cautions however that government support for early stage startups remains crucial.