New Zealand and Singapore angel investors have signed a land-mark partnership between the Angel Association of New Zealand and the Business Angel Network (South East Asia) which will assist both countries in the development of globally successful exporting companies.
Angel Association Chair Andrew Hamilton says the partnership is highly valuable for New Zealand as it will open up networks into South East Asia for our emerging global companies, both in terms of networks for investment and market access.
“With our trading links to South East Asia expanding with the signing of the free trade agreement with Asean, it is the right time to be expanding our investment links.
“Angel investment is a key asset class in economies, with European research showing that angel backed companies today, will represent 50% of the new jobs in 10 years time. The angel industry has developed significantly over the last few years world-wide and this partnership is further evidence of the growth of the industry.”
Joe Rouse, Director of Bansea, said: “We are delighted to form this relationship with New Zealand. We have seen a fantastic angel industry developed around the incubators and Universities in New Zealand and are looking forward to helping many of the companies funded from New Zealand using Singapore as a base to grow their Asian operations.”
AngelLink, a national angel investment network backing New Zealand high growth technology ventures, with an emphasis on life sciences, engineering and ICT, welcomes the inclusion of the Life Science Angels Network into its structure. The move is designed to create greater scale and focus in the life sciences angel investment space.
AngelLink’s members include some of the country’s leading biotechnology and high technology investors including Movac, K1W1 and Sparkbox. AngelLink has also partnered with the NZ Venture Investment Fund (NZVIF) through its Seed Co-Investment Fund.
AngelLink Chairman Chris de Boer says, “Our national network of angel investors and international partnerships provide excellent leverage for high-growth potential start-up companies that are seeking to develop unproven markets or technologies. Life sciences are a key part of AngelLink’s focus. The inclusion of the Life Science Angels Network helps AngelLink achieve greater scale and expertise in this area. As a result we’ll see more investment activity in the life sciences space which will benefit the network and the sector in New Zealand.”
The Life Science Angels Network was created by a collaboration between NZBIO, ICE Angels and Auckland Plus to validate the concept of creating a virtual network of angel investors who are interested in investing in life science technology deals.
Andy Hamilton, Director, ICE Angels says, “When it comes to early stage funding there is a case for some sectors, such as life sciences, to have specialisation. The ongoing viability of the sector depends on its ability to raise funds from a variety of sources and to complete value-creating deals. This access to funding is consistently one of the key constraints identified across the bioeconomy in New Zealand yet, based on international experiences angel investment has the ability to be a key part of the funding solution.”
“Having validated the need for The Life Science Angels Network we readily came to the conclusion that the natural home for the network was actually AngelLink as they already have in place a number of critical partnerships for deal flow in the life sciences space. As a small country we need to take every opportunity to achieve scale.”
The merger will include all research, contacts and emerging international partnerships, including the Australian Life Science Angel Network, Life Science Angels Inc (USA) and Bansea, Singapore.
NZBIO, the national bioscience industry group, has applauded the transfer to AngelLink.
Chief Executive Bronwyn Dilley says, “AngelLink’s strong focus on life sciences and nationwide coverage will be further strengthened by the inclusion of the Life Science Angels Network. Angel Investment is an important part of the investment landscape and a strong, focused approach is vital to the success of a mature New Zealand life science industry. It’s great to see AngelLink continue to gain momentum, as the result will be more early stage life science projects are spun out of the lab into the market with benefits to all.”
AngelLink, which was initiated by WaikatoLink, the commercial arm of the University of Waikato, connects investees to the full continuum of funding through its lifecycle from science to market spanning proof of concept, angel investment, early stage venture capital, expansion stage venture capital, and public markets.
AngelLink was launched at a function at NZX in August. The Minister for Research, Science and Technology, Wayne Mapp was the guest of honour.
At the launch, WaikatoLink Chief Executive Mark Stuart said, “At an industry level there is a real need to make some improvements to generate more economic benefit from life sciences and technology research. We need to start with the end in mind and bring the market in from the start. We need to encourage a co-ordinated approach and funding models that encourage collaboration rather than competition. AngelLink represents a step change in early stage company investment by formalising visibility to upcoming investment opportunities to all of the partners across the investment continuum”.
Dr Mapp said, “The highest priority for the New Zealand Government is growth. Future opportunities will depend on innovation and entrepreneurship and much of this comes from fundamental science. AngelLink will connect research and investors with the intent of getting science to the marketplace. Our future prosperity depends on getting this right.”
The first Australasian Life Science Angels Network Meeting today in Queenstown, part of the annual summit organised by the Angel Association of New Zealand, is the setting for the first meeting between AngelLink, the Australian Life Science Angel Network and Bansea, Singapore.
The Angel Association has linked up with international partners in Australia, the United States, and Europe in a move which it hopes will help young New Zealand companies looking to expand offshore.
Angel Association chair Andy Hamilton said cooperation agreements have been signed with the Australian Association of Angel Investors, the European Business Angel Network, and the United States Angel Capital Association.
“The objective with signing these agreements with Australia, US and Europe is threefold. It will promote relationship exchanges. It will promote best practice exchanges. And it will aid our kiwi companies entering foreign markets and getting finance in those markets.
“Angel investing has become a significant asset class in its own right since the year 2000. By building international linkages, angel groups in New Zealand can benefit from the worldwide growth in angel investment.
“Since 2005, we have seen considerable growth in syndication of angel deals between angel groups in countries. Now, we are starting to see syndication occurring across country borders.
“For a young New Zealand company looking to expand to, for example, the US, having a US angel investor alongside some New Zealand angels could help greatly in terms of that company’s knowledge and understanding of the US market. Syndication also greatly expands the potential capital available.
“We are already seeing international interest in our growing angel community. Representatives from three Australian angel groups will be attending the Angel Summit in early November in Auckland. We hope that Kiwi angels will be attending US and European angel conferences next year.
“We are also look at building links with the Asian region. Further, moves are underway to establish the World Business Angels Association, of which we will be one of the founders,” Andy Hamilton said.
You probably read the recent announcement about the establishment of the Angel Association of New Zealand. Andy Hamilton, the CEO of The Icehouse and founder of the ICE Angels in Auckland, is now also the chair of the Angel Association’s Council.
We caught up with Andy and asked him to tell us more about the association’s plans, including:
Andy’s vision for the angel space in NZ
Providing a single voice to government
Help with education of new angel investors
Promotion of angel investing
Enabling better syndication, both local and international
If you’re interested in more information about the Angel Association of New Zealand, you can contact Andy at ahamilton@theicehouse.co.nz, or ring him at The Icehouse on +64 9 308 6200 or 0800 ICEHOUSE (0800 423 468)