Wellington Tech Companies Are Benefiting From Record Growth in Angel And Crowdfunding Investment, According to TIN
Analysis
Auckland, July 4, 2018 - Wellington’s early-stage tech companies are reaping the benefits of the record amount of angel
and crowdfunding investment flowing into the tech sector, according to analysis from Technology Investment Network
(TIN).
The third annual Investor’s Guide to the New Zealand Technology Sector, published in May by TIN and the Ministry of
Business, Innovation and Employment (MBIE), showed record levels of early-stage investment with combined funding from
New Zealand-based angel investors and domestic crowdfunding increasing by 35% to $112 million; the first time the figure
has topped $100 million (NZVIF and Snowball Effect 2018). Angel and crowdfunding investment into the tech sector has
risen at an annual growth rate of 18% over the past four years.
The rising investment in the New Zealand technology sector is a reflection of its strong performance globally. The
nation’s 200 largest technology “exporters”, the ‘TIN 200’, grew by total revenues of 8% to more than $10 billion for
the first time last year.
Greg Shanahan, TIN managing director, said “The tech sector has passed a tipping point and Wellington companies are at
the forefront.”
Wellington TIN companies grew revenues by nearly 11% last year, creating more than 750 new jobs for the tech sector.
David Jones, Wellington Regional Economic Development Agency’s (WREDA’s) Business Growth and Innovation general manager,
said more talent is required to continue feeding the success of Wellington’s tech sector. “There is a global battle for
tech talent which is why WREDA led the LookSee Wellington recruitment campaign which attracted 45,000 applicants from
around the world. Wellington is also well positioned with firms such as Weta Digital, Xero and Datacom acting as a
magnet for tech talent, alongside a strong Wellington startup culture of incubators, accelerators, and bootcamps.”
According to New Zealand Venture Investment Fund (NZVIF) figures, Wellington companies received a total of NZ$10.34
million in angel investment in 2017. The vast majority of these early-stage companies were technology firms that have
the potential to be TIN200 ranked in the future. Wellington received 12% of the total $86.99 million national angel
investment funding in 2017, making it the second largest region to receive angel investment behind Auckland. The annual
dollar amount of angel funding received by the Wellington region grew by 476% from 2006 to 2017, at a compound annual
growth rate of 17%.
Wellington is not just the headquarters to large, iconic TIN companies such as Datacom, Xero and Weta Digital but also
to a new generation of early stage technology companies that are following in their footsteps. Over the past two years,
several Wellington-based companies have each been the recipients of angel funding in excess of NZ$1million, including
Regen, Montoux, Conscious Consumers, Postr Media and Signal Corporation.
Suse Reynolds, founder of Angel HQ, the Wellington region’s angel network and executive director of Angel Association
New Zealand, says that, “Wellington is home to a thriving start-up tech scene and a very active angel community, both of
which help support angel investment nationally. New Zealand tech companies have shown an incredible ability to scale,
and TIN’s recent analysis shows that funding is a critical component of that.”
Ms Reynolds will be a panellist at the first of TIN’s Mentor Series on “Unlocking Growth”, where a panel of tech
entrepreneurs and industry leaders will discuss the different approaches to growing a start-up business. Other
panellists include Brooke Roberts, CEO and Co-Founder Sharesies; Mario Wynands, MD and Co-Founder PikPok; Sam Minnee CEO
and Co-Founder SilverStripe; and Mark Peterson, CEO of the NZX.
The recently-published Investor’s Guide also showed escalating foreign investor interest in New Zealand companies,
fueled by the strong pipeline of fast-growing tech companies. The past five years has seen a marked increase in the
number of offshore investments being made in NZ tech companies, particularly from the US. Of the 62 TIN-tracked
international investors recorded from March 2013-April 2018, 56% were based in North America. Wellington-headquartered
technology companies in receipt of significant US investment in the past five years include Xero and 8i.
TIN’s Mentor Series on ‘Unlocking Growth’ will be held at Bizdojo, 115 Tory Street, Wellington this evening (Wednesday,
July 4) from 4.30-7.30pm. TIN will also present a summary of findings from the Investor Guide at the event. Tickets are
available via tin100.com/events.
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