Angels poised to sprinkle cash

Cory Williams

A friendly and strong entrepreneurial culture makes New Zealand the perfect breeding ground for angel investors, says Ice Angels chief executive Cory Williams.

One month into his new role leading the private investor network, Williams wants to see more small businesses take advantage of the millions of dollars in funding that Ice Angels can provide.

"People are far more entrepreneurial in New Zealand. Statistics show we've got more small businesses per capita than any other country.

"The downside is not enough businesses are driving these ideas through or have the foresight to get help."

By providing anything from $50,000 to $1 million for technology and creative companies in their start-up-phase, Ice Angels help to bridge the gap until they are ready for venture capital.

The 'angels' are typically ex-entrepreneurs and successful business people looking to add young companies with potential to their portfolios.

"It's just wealthy guys wanting to invest in passionate young entrepreneurs to help them out," said Williams.

They are "active investors" who usually couple their money with a role in company, either by serving on the board or by assisting with strategy or team building.

Williams, a former investment banker and the husband of ex-Australian netball captain Kathryn Harby-Williams, said he was expecting to see the network of 40 angels double over the next year.

Although angels could expect to make a 20 or 30 per cent return on their investment, this was not their prime motivation.

"It's a community service and they need to have it in mind that they want to help young businesses like they were when they started." said Williams.

"But the fact is they can do well out of it."

Unlike borrowing from family members or friends, all financial risk is borne by the individual angel who must have an income of $200,000 a year or net assets of $1 million.

After one year the network is gaining legs, having invested in two small businesses last year, with two more investments pending.

The ventures include medical devices for asthmatics, email-marketing, software marketing and networked digital signage.

Ice Angels was formed by The Icehouse (International Centre for Entrepreneurship) in December 2003 to fill a gap in the local equity market for funding start-up companies.