With the help of angel investment, a vibrant startup ecosystem has developed in New Zealand over the last 10 years. Those who have been on the journey know how exciting it’s been and the possibilities that lie ahead. For those thinking about getting involved, there’s never been a better time to become part of our community.
By taking a look at the latest Young Company Finance Index data we can see some of the key trends that have developed since 2008. The numbers reveal how far the startup community has come and the fundamental role angel investment has played in getting these businesses started. We cover the key statistics in the latest edition of Startup Investment magazine produced by PwC New Zealand and the Angel Association.
One of the key findings is that investment has steadily increased from over $30 million in 2008 to over $100 million in 2018 - and it shows no sign of slowing down.
We are seeing investments made in a wider range of sectors. While there has been considerable investment in software startups for some time, new areas are beginning to develop — such as consumer durables, energy, household and personal products, and education businesses.
New Zealand’s startup story is also one of regional development. In 2008, there were six regions receiving investment (Auckland, Hamilton, Napier, Palmerston North, Wellington and Dunedin). Yet by 2018 this had swollen to 13 different regions with the addition of Cambridge, Waikato, Tauranga, Bay of Plenty, Taranaki, Nelson/Marlborough, Christchurch and Timaru.
When it comes to the different funding stages, there is now more investment in the startup phase than 10 years ago (up from $19 million to $55 million) and at the early expansion stage (up from $5 million to $21 million).
This data is consistent with the TIN100 reports showing New Zealand tech sector revenue growing from $6.3 billion in 2008 to $11.1 billion in 2018, with many initially angel-backed companies contributing to growth.
It reveals an ecosystem in great health and give us plenty of reasons to be excited for the next decade.
This content is created in partnership with PwC.
For enquiries about startups and angel investment please contact PwC Partner Anand Reddy.