Venture Capital - New Zealand

New Zealand

Highlights

The country in New Zealand is projected to see a Total Capital Raised in the Venture Capital market market reaching US$243.20m in 2024.
In the same year, the Later Stage market is expected to dominate the market with a projected market volume of US$118.10m.
When compared globally, the United States is forecasted to lead in Capital Raised, with US$136.6bn in 2024.
New Zealand's Venture Capital market is flourishing, with a rising interest in tech startups and sustainable ventures attracting significant investment.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in New Zealand has been experiencing significant growth in recent years, driven by several factors.

Customer preferences: Entrepreneurs and startups in New Zealand are increasingly turning to venture capital as a source of funding. This is due to the advantages that venture capital offers, such as access to expertise, networks, and mentorship, in addition to financial capital. As the startup ecosystem in New Zealand continues to mature, entrepreneurs are recognizing the value that venture capital can bring to their businesses.

Trends in the market: One of the key trends in the Venture Capital market in New Zealand is the increasing number of venture capital firms and funds. These firms are actively investing in a wide range of sectors, including technology, healthcare, and renewable energy. This trend is driven by the growing interest in venture capital from both local and international investors, who see New Zealand as an attractive investment destination. Another trend in the market is the focus on early-stage investments. Venture capital firms in New Zealand are increasingly looking to invest in startups at the early stages of their development, as these companies have the potential for high growth and returns. This trend is supported by the availability of government support programs and initiatives aimed at fostering innovation and entrepreneurship.

Local special circumstances: New Zealand has a strong culture of innovation and entrepreneurship, which is reflected in the growing number of startups in the country. The government has also been actively promoting and supporting the development of the startup ecosystem, through initiatives such as the New Zealand Venture Investment Fund (NZVIF) and the Start-Up New Zealand program. These initiatives provide funding and support to startups, making New Zealand an attractive destination for venture capital investment.

Underlying macroeconomic factors: The Venture Capital market in New Zealand is also influenced by underlying macroeconomic factors. The country has a stable and growing economy, with low inflation and unemployment rates. This creates a favorable environment for venture capital investment, as it reduces the risks associated with investing in startups. Additionally, the government's focus on innovation and technology-driven industries has created opportunities for venture capital investment in sectors such as software development, biotechnology, and clean energy. In conclusion, the Venture Capital market in New Zealand is experiencing growth due to customer preferences for venture capital as a source of funding, the increasing number of venture capital firms and funds, the focus on early-stage investments, the local special circumstances such as government support for startups, and the underlying macroeconomic factors that create a favorable investment environment. These factors combined make New Zealand an attractive destination for venture capital investment.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.