Angel investment is an opportunity for investors to become involved with innovative start-up businesses – it’s an approach that appeals to investors who are looking for potentially higher returns than traditional investments may offer. In my experience, angels come from a variety of backgrounds – successful entrepreneurs themselves, professionals who’ve built wealth via other asset classes and want to diversify etc.
Usually, angel investors provide the bridge funding from the self-funded stage of the business to the point that the business needs the level of funding that a venture capitalist would offer. The amounts typically range from $150,000 to $1.5 million – and that could be from one investor or, more usually in NZ, via a syndicate.
In NZ, there are heaps of clubs that investors can join – like AngelHQ in Wellington – that mean they see more deals, and can co-invest alongside their peers to spread their capital across a diverse portfolio. And there’s an overarching industry body, the Angel Association of NZ (one of our sponsors, whoo!) who educate, lobby and promote this asset class and all the awesomeness that goes with it.
Coworking spaces are also a place where dealflow can be found – if we do our job well at 3mile, we’ll have a group of well-supported, motivated entrepreneurs whose ideas are being tested by their peers regularly. And when we run workshops, networking events etc to introduce our entrepreneurs early on in their journey, to angels interested in the ventures they’re building, we’ll be doing our bit to build relationships and provide guidance to make those ventures investment-ready and ultimately get deals done.
First up some workshops, starting with this one. Then networking events, and over time hopefully we’ll find some amazing Wairarapa Angels who’ll join up with a local club and boost our regions’s ventures. And if you can feel those angel wings budding under your jacket, email marie-claire@3mile.nz !