Regional Investment = Regional Growth




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Welcome to bizAngels

1. Background

2. Small and medium sized businesses seeking capital investment and alliances

3. Angel Investors, Investors

4. Business Developers

5. Economic Development Associations and other related organisations
6. Administration

The bizAngels Scheme is designed to match and introduce investors who wish to invest directly into small and emergent businesses (angel investors), with small and medium sized businesses seeking capital investment.

1. Background

The bizAngels Scheme functions under the Securities Act (Venture Capital Schemes Exemption Notice 2008 (see legal section). This exemption allows businesses who register with the Scheme Administrator, using defined protocols, to be presented to registered investors without having to complete the onerous task of developing a full prospectus and registering this with the Companies Office, as is required by the Securities Act when a business issues shares to the public.

This exemption process is only available for capital investments of under NZ$5,000,000.00 (five million New Zealand dollars).

bizAngels' purpose is to enhance and maximise the opportunities for businesses and investors. It supports existing local investor networks and maintains the privacy of those networks and individual investors who do not wish to be involved in networks. It also creates short term investor networks around any one deal. The other side of the service is the sourcing and facilitating investment ready processes for businesses seeking investment.

The service is designed to function both locally and with national coordination and includes a number of groups:

2. Small and Medium Sized Businesses Seeking Investment

Small and medium sized businesses come in a variety of forms. They may be new emergent businesses or existing businesses seeking to grow to the next stage. All seek potential pathways for growth through the injection of capital, skills and/or alliances. All must be prepared to value their businesses realistically and give up substantial parcels of shareholdings to direct investors.

3. Angel Investors

An angel investor is a name used for investors who invest capital directly into small and medium sized businesses, but contrary to common belief, they are not philanthropists.

There are numerous types of angel investors with varied motivation for investing in small and medium sized businesses. All seek significant and viable returns from the businesses they invest in.

The knowledge about these investors and the companies they invest in is limited, as historically we have not had strong mechanisms within New Zealand to facilitate this matching process globally. Angel investment has relied predominantly on personal networks. The investment deals are usually private and frequently not recorded, except as a shareholding change within the Companies Office.

The majority of angel investors do not participate as passive investors, as when investing in the stock exchange or group schemes. Angel investors tend to have high business acumen and contribute additional intangible value over and above capital through direct involvement in a business as shareholders, directors or team members of the business operations.

4. Business Developers

Business developers are skilled individuals or companies who are specialists in the process of getting businesses ready for investment. This includes the accumulation of the business hard data, preparing new business structures and the psychological processes required for businesses expanding to accommodate and integrate new influences.

Business developers are from a wide diversity of sources. Some can come from businesses that specialise in investment ready processes, are part of accounting or law firms, business incubators, university programmes, specialist mentors, or part of New Zealand Trade and Enterprise programmes. Alaways check the investment ready capability of your business advisor before you engage them.

5. Economic Development Associations and other related Organisations

Regional economic development agencies, business incubators and other related organisations such as Chamber of Commerce or employers associations, are organisations that take many different forms. All work within the local business communities to promote business development, sustainability and growth. These organisations are vital in this service to identify businesses, and assist and support in their investment preparation process.

6. Administration

Under the Securities Act Exemption the manager of the processes is called the Scheme Administrator. Enterprising Manukau is a Scheme Administrator. This person and any others who work directly with the Administrator on scheme processes and services must not express any view, positive or negative, to anyone on the validity of the business proposals. They must be commercially neutral at all times.

Because a company is registered and listed by the Scheme, does not imply endorsement of the business or the offer. It only states that the business has gone through the processes required by the Securities Act Exemption Notice and the Code of Practice.

Once an introduction is made between potential investor and business the administrator does not participate in any negotiations or due diligence.

The Administrator has the right to refuse any business onto the Scheme if they believe the process has not been completed under the requirements of the Exemption Notice.