SHOW US THE MONEY: A GUIDE TO RAISING CAPITAL
It was well-known US venture capitalist and author Richard Harroch who said, “It’s almost always harder to raise capital than you thought it would be, and it always takes longer. So plan for that.”
It is true that raising venture capital can be daunting for fledgling businesses, but at the same time, investor funding has never been more available, accessible or flexible. And yes, with such a diversity of funds, boutique investment banks, angel groups and crowdfunding providers out there, it may not be easy. But planning, and seeking the best advice, is vital.
Jack McQuire and Barnaby Marshall, partners at Auckland-based Icehouse Ventures, say venture capital primarily works the same in New Zealand as anywhere in the world. Investors (whether an individual high net worth, a fund, corporate or group of angels) invest for a minority ownership position in the business.
“Every investor has different preferences about what they’ll invest in, the terms they offer, and how they’ll contribute to the business beyond their capital, but for the most part
