Idealog on the state of VC and angel investment

Idealog Magazine this month provides an entrepreneur’s perspective on VC and angel investment, headlining with “New Zealand venture capital desperately needs a hit—an investment that pays back, big time. Without it, our venture capitalists struggle to fund creative Kiwi companies. Mike Booker discovers why we’re sadly used to hearing ‘no’”.

Um.  Guys, we need more than one hit … otherwise we start looking like the NZ cricket team from the 1980’s – you know, Richard Hadlee and Everyone Else.

The article describes the bind that VC firms are in since the original NZVIF series A funds were fully committed, and the implications of the dearth of local institutional investment.

NZVCA’s Colin McKinnon is right on the money, when he asserts

… the most important ingredient for the future health of the VC industry in New Zealand will be its people.  The industry needs funds managers who will inspire investor confidence through the quality of their investment choices and ability to nurture young companies through to a successful exit from their funds. These managers should be part of a vibrant network that includes capital markets, serial entrepreneurs, serial institutional investors and a financially literate public.

The industry is improving, albeit slowly, but that’s only natural given the level of resources at New Zealand’s disposal.  Our investment ecosystem is developing, both in breadth and depth, as well as connectedness and transparency.  So good on Idealog and its interviewees for being so open about the state of play.

But don’t take it from me, read the full Idealog article …