NZ venture capital community still rebuilding: Garage Tech   6 May 2015

Article - BusinessDesk

NZ venture capital community still rebuilding, Silicon Valley VC head says

By Paul McBeth

May 6 (BusinessDesk) - New Zealand's institutional venture capital community is still recovering from the global financial crisis six-and-a-half years ago, although so-called angel investors are in better heart, according to a visiting venture capitalist from Silicon Valley.

Palo Alto, California-based Garage Technology Ventures' managing director Bill Reichert told BusinessDesk the local venture capital community isn't at critical mass, and is still recovering from the GFC. In contrast, he says the angel investor sector appears to be vibrant, although it would benefit from greater pooling of resources.

"My impression is the institutional venture capital community has still not recovered from the meltdown and that just put a huge dent into building the institutional venture capital community," Reichert said. "Nevertheless, there seems to be a very vibrant angel community here."

Last year, Angel Association chairman Marcel van den Assum urged his fellow investors to broaden their portfolios rather than backing one or two firms in the hope of a big pay-off.

Garage Technology Ventures' Reichert said the question for New Zealand angel investors was whether there was enough collaboration in the investing community.

"In a situation like this there should be more pooling of resources and focusing of attention around the most likely success stories," he said. "The whole nature of the market economy says let a thousand flowers bloom, but if you don't have enough water and you let a thousand flowers bloom most of them will die."

Adiba Barney, chief executive of SVForum, a Silicon Valley non-profit organisation aiming to foster the high-tech region's ecosystem, said New Zealand's entrepreneurs and early-stage start-ups need a champion to help create an environment where they interact with each other to develop a thriving community that feeds off each other.

She's optimistic the local scene has found that in government agency Callaghan Innovation, which has been tasked with helping fund the road to commercialisation by subsidising research and development and supporting a group of incubator programmes.

"Creating those kinds of opportunities are really important, that's why what Callaghan Innovation are doing is very, very important - much more so than you'd imagine," Barney said. "When it's too spread out and you don't have someone bringing it all together and being the champion for it, it makes it harder."

Reichert, who is a beachhead adviser for New Zealand Trade & Enterprise in North America, said the reality for most New Zealand entrepreneurs, is that when they want to go global they will have to leave the country to do so.

Reichert and Barney are travelling to New Zealand's main centres meeting entrepreneurs, investors and business leaders to help support Callaghan's incubator programme and provide local businesses with a connection in Silicon Valley.

(Disclosure: BusinessDesk receives funding from Callaghan to assist in the coverage of the commercialisation of innovation)

(BusinessDesk)

Add a comment

News

Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students

29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more

New Zealand reaffirms support for Flight MH17 judicial process

7 Mar 2020 News By Rt HON WINSTON PETERS
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more

Business

NZ Government's Economic package to fight COVID-19

17 Mar 2020 Business News By RT HON JACINDA ARDERN
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more

NZ Government announces aviation relief package

19 Mar 2020 Business News By Hon Phil Twyford
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more

Living

Diversity was Key at New Zealand Trade Tasting in London

6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall. It was the first... more

Kiwi author stuns Behind the Butterfly Gate

12 Jan 2022 Arts By Charlotte Everett
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...  New Zealand writer Merryn Corcoran’s... more

Property

Fairer rules for tenants and landlords

17 Nov 2019 Property By Minister Kris Faafoi
17 NOVEMBER 2019 The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more

New Zealand Government will not implement a Capital Gains Tax

17 Apr 2019 Property By RT HON JACINDA ARDERN
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more

Migration

Boosting border security with electronic travel authority – now over 500,000 issued

19 Nov 2019 Migration By Hon Iain Lees-Galloway
19 NOVEMBER 2019 We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more

Christchurch reinstated as refugee settlement location

18 Aug 2018 Migration
18 AUGUST 2018 HON IAIN LEES-GALLOWAY The announcement that Christchurch can once again be a settlement location for refugees... more

Travel

Gallipoli Anzac Day services cancelled

19 Mar 2020 Travel & Tourism By RT HON JACINDA ARDERN
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more

New Zealanders advised not to travel overseas

19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas more

Sport

The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners

27 Oct 2019 Cricket By Charlotte Everett
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more

PREVIEW: All Blacks v England semi-final

26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade First published on Werewolf The ghastly likes of Marine Le Pen in France and Geert ... more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome Well um.. on the bright side, there (probably)... more

Kiwi Success

Congratulations to Loder Cup winner

26 Sep 2018 People By Hon Eugenie Sage
25 SEPTEMBER 2018 The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more

Appointments to New Zealand National Commission for UNESCO

16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO HON JENNY SALESA Associate Education Minister Jenny Salesa is... more

Recruitment

Historic pay equity settlement for education support workers

14 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more

Historic pay equity settlement for education support workers

22 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more