NZ Investors


Depending on how much money you're looking to raise, there may be different options for you to seek investment

If you're looking to raise between $1,000 to $25,000, you’ll probably want to get that money from your own savings, or from family and bootstrapping.

Upwards from $25,000 to $250,000 dollars, you want to look at Angel networks. This can also come from the SCIF fund in New Zealand which is the seed co-investment fund, or someone like Callaghan Innovation.

If you're looking to raise money between $250,000 to $1 million, a good place to look is angel groups. These are formal, larger groups, and also small venture capitalist companies.

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The process for funding often starts off with small amounts of money.

So between $5,000 to $150,000, often you're looking for a proof of concept in your business. You might raise a little bit of capital because you've got a proven system or concept. However, you need to create a little bit more of a product. $5,000 to $150,000 often helps you develop your product, hire a few key staff and allows you to put more money into research and development.

At the next level, is your series A. You're looking to build customers and sales. This is often where you look to raise $1 to $3 million and is referred to as your series A investment round.

Your second investment round is often referred to as series B round. This is where you're looking to raise between $3  to 10 million. Here the capital really goes towards accelerating the growth of your company, both domestically and internationally.

Lastly, there’s your series C. This often exceeds $10 million in funding and is really used towards significantly scaling your business and growing internationally. The aim here is to generate revenue that returns some of the investor profits.

How you do you make your business more attractive to investors?

Being attractive in business means that you're valuable and, therefore, investable.

A couple of different things you want to keep in mind is that you want to have a high growth with high margins. This makes your business highly attractive to investors. Comparatively, a high growth business with low margins becomes more risky. As scale goes up and your company is not as attractive to investors as it doesn't return any profits. These usually take a lot of assets, a lot of capital in order to grow but don't really return profits.

The least favorable one is low growth, low margins. This becomes very unfavorable for investors. It doesn't give any returns and therefore it's going to be hard to raise money.

If you're able to build a valuable company, investors will want you.