This week’s launch of AngelLink could mark a pivotal moment in the development of New Zealand’s innovation space.

Conceived and managed by WaikatoLink, AngelLink is a new national angel investment network specifically designed to commercialise intellectual property from universities and CRI’s, and is backed by the country’s most experienced and well-resourced hi-tech and biotech investors.

It brings New Zealand angel investment to the next level.

This is exciting news for a number of reasons:

• Movac, K1W1, Sparkbox, Neville Jordan, Waikato University, AUT, and SCIF are coming together to actively collaborate. While these players have co-invested with each other on a tactical basis before, this is the first time they’ve all agreed to work together in a more formal, strategic framework.
• Research institutions generate considerable intellectual property that until now has never seen the light of day, due to limited resources and commercialisation experience in the niche investment spaces and geographic locations that they occupy. A national network will increase the likelihood of successful commercialisation of some of New Zealand’s best IP.
• Conversely, angel investors nationwide have had limited access to university-sourced IP. AngelLink will give access to opportunities to a wider group of experienced investors.

The common theme is that all of the stakeholders – inventors, entrepreneurs, incubators, investors, and government – all understand that there are huge gains to be realised by working together, and have the appetite to make it happen. People realise that the pie can be made disproportionately bigger by relinquishing some ownership and control.

There’s a word for that – maturity.

And the experience and professionalism is evident from the start. AngelLink achieved SCIF accreditation prior to launch. Although based in the Waikato, they chose to launch at NZX in Wellington to underscore the national nature of the network. AngelLink is not a small club of wealthy dentists and farmers. At the launch, Chris de Boer, AngelLink’s chairman, said that he’d never seen such a broad spectrum of New Zealand investors in one room, ever. The gathering included people like Wayne Mapp (Minister of Science Research and Technology), Mark Weldon (CEO NZX), Franceska Banga (CEO NZVIF), Sir John Anderson (Chancellor Waikato University), Jim Bolger (Chairman NZ Post), Neville Jordan (Endeavour Capital), Mark Stuart (CEO WaikatoLink), Greg Sitters (Sparkbox), Phil McCaw and David Beard (Movac), Suse Reynolds (Angel HQ), John Errington (CEO VicLink), as well as a number of familiar faces from the local Wellington angel scene. Exposure to the entire investment food chain is compelling.

Chris said that they already have pipeline with four deals ready to go on day one.

There is some potential risk in setting up a new national angel network that has some overlap with the existing regional clubs. Some of New Zealand’s fledgling angel clubs are struggling to achieve and maintain critical mass, both in terms of investment capacity and ability to attract quality opportunities. But that shouldn’t be a problem so long as AngelLink sticks to institutional IP, and doesn’t compete with clubs for deals coming from local incubators and garage entrepreneurs. Syndication is all about sharing expertise, resources, risk and reward in such a way that everyone benefits.

And if AngelLink continues in the same manner as it has started, everyone will benefit from commercialising previously hidden IP.

New Zealand will be the winner.

The New Zealand Venture Investment Fund is investing up to $20 million into a new private equity fund being established by Endeavour Capital Ltd which is aiming to invest $100-$150 million into early expansion New Zealand companies.

Endeavour Capital chairman Neville Jordan said the Endeavour Growth Fund hopes to attract up to $100-150 million from New Zealand institutions and investors which will be earmarked for New Zealand investments, particularly those based on high quality research and development.

NZVIF chief executive Franceska Banga said NZVIF’s commitment of up to $20 million will be co-invested with the Endeavour Growth Fund into young New Zealand companies with high growth potential.

“There are some very promising New Zealand companies in the early expansion stage which will be requiring capital to fund their next stage of growth. The Endeavour Growth Fund will provide capital for high growth companies which will be the mainstay for New Zealand’s future growth.

“NZVIF and Endeavour Capital have track records of supporting investment into high growth potential companies. I hope New Zealand institutions and investors support this positive initiative.”

Neville Jordan said Endeavour Capital has previously raised and managed two earlier funds.

“We have considerable experience and success in investing into sectors such as cleantech, biotechnology, software and life sciences. This is an ideal opportunity for investors – both New Zealand and overseas – looking for opportunities in the New Zealand market. It will also be of great assistance for young companies facing the difficult prospect of raising capital in the current economic climate.

“At the Jobs Summit and since, there has been much discussion around private equity funds investing into New Zealand companies. This is a substantial initiative which will help a number of high growth companies – including some small and medium sized enterprises – to grow. Having taken this step, the challenge is now for other institutional and private investors to put talk into action.

“The companies we will focus on are creating the highly productive jobs which New Zealand needs to generate. A New Zealand-based fund will help to keep these companies here in New Zealand as they grow, and protect New Zealand jobs.”

Mr Jordan said the fund also aims to attract another US$270 million from offshore investors which will be focused on offshore investments, particularly in the Asia Pacific region.

Prior to establishing Endeavour Capital, Neville Jordan was the founder of MAS Technology, the only New Zealand private company to list on the NASDAQ main board. He was awarded the CNZM for services to telecommunications and export in 1999.