The Dark Net

NZVIF have released their latest Young Company Finance report. The report includes a list of all of the companies that raised new capital so far in 2014. It is an appallingly incomplete list. These are the companies that I know of they have missed:

I’m sure there are many others. Please add a comment to this post if you can give me more names. If you add up the amount raised by just those I’ve listed it comes to more than the $23m that is reported, meaning they miscalculate the amount of investment by at least half. No wonder officials are convinced there is a shortage of capital. They are overlooking all of the best companies who typically don’t need to resort to angel networks to raise money. This was the report on Stuff this morning: Angels give tech start-ups a good shot.

Investment in young companies by Dragons’ Den style investors topped $50 million in the year to June, according to a report by the New Zealand Venture Investment Fund (NZVIF) and the Angel Association.

Angels and Dragons, y’all. Apparently when it comes to young companies calling yourself simply an investor isn’t sexy enough. Just a thought, but maybe we should make it more about the companies and less about the investors.

UPDATED: added a few more companies and some links to media stories about these capital raises – in most cases this information is already in the public domain.

10 thoughts on “The Dark Net”

  1. Reblogged this on Bill Bennett and commented:
    Key point for me is Simpson’s last sentence:
    “Just a thought, but maybe we should make it more about the companies and less about the investors.”

    Sure, we couldn’t have most of these wonderful innovative companies without investor money, but the emphasis on investors is wrong, unless you’re writing news stories purely for investors to read.

  2. So my question is. Do we need this type of industry reporting? Is it a good thing? If it isn’t then why are we wasting our breath talking about it?

    If so then it isn’t that hard to fix. Get a decent researcher onboard (http://www.mrsnz.org.nz) and take a methodical approach to measuring the industry. Make the results and the methodology open and transparent.

    Seems like something that NZVIF should be funding.

  3. Houston-based growth capital fund CRG (previously known as Capital Royalty) and New Zealand’s Milford Asset Management invested $US14 million in equity in AFT Pharmaceuticals, with the American firm providing additional capital of up to US$30m from a structure loan facility : http://www.stuff.co.nz/business/unlimited/10615665/US-investors-eye-Kiwi-firms

    Not from a NZ fund but still seed/VC funding for NZ companies.

    Glen: Do we need this type of reporting. I dont know but if a Government entity is producing it, and no doubt the Government is making funding/investment decisions based on it (refer to the Sam’s rant articles over the past couple of weeks), it should at least be correct. Agree that NZVIF should be funding it but they seem to have done it on the cheap (except the glossy photos that is).

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