This week’s Moxie Sessions on capital for technology companies revealed five key points. Few of these are widely discussed at the moment. Let’s change that:
- While the rest of the world turns to formal sources of capital investment and less formal sources such as crowd-funding, New Zealand’s start-ups typically use informal funding sources. This has positive and negative implications.
- New Zealand Angel investment is immature by international standards. Local angels typically have unrealistic expectations and often ask too much of entrepreneurs.
- Despite the common perception, there is no shortage of investment capital in New Zealand.
- The best role model for New Zealand’s start-up technology sector is not Silicon Valley or Australia but Israel.
- Sophisticated investors look for evidence a business is gaining traction, particularly in overseas markets. They also want to see clear proof the idea behind the business works in the market.
That’s the headline material. You’ll find a fuller report from Vaughn Davis later this month at the NBR (here’s a link to his last Moxie report) and there will be a podcast at the Moxie Sessions site.