Sources of Funding

The most important factors in considering funding sources for your business are:
  • Cost of the funds
  • Other terms and conditions

Sources of Finance

Own savings and assets (private equity)

This is your own money and costs the least

Grants

WINZ Enterprise Allowance / NZTE business development grants.
Enterprise allowance helps eligible unemployed job seekers wanting to start their own business. It is an allowance to help your cash flow for up to a year while you get your business off the ground.

This is over and above any income you earn in your business. It is a start-up allowance, not a loan.

You can choose how to use the allowance. For example, you could use it to meet business expenses such as rent or power, or you could use the money to live on while establishing your business.

Your allowance must be approved by WINZ before you start your business.

You may be eligible if you:

  • need the Enterprise Allowance to start up your business
  • have been enrolled with us for at least 6 months (with some exceptions)
  • are getting some form of income support (or your spouse is)
  • are above the school-leaving age and below the eligibility age for national Superannuation
  • are a New Zealand citizen or permanent resident
  • have not been self-employed within the last 12 months
  • are not an undischarged bankrupt
  • have a good business idea
  • For more information visit: http://www.winz.govt.nz
Share Capital:

Selling ownership (shares) of part of your business to others (shareholders) or put another way it is the amount of money contributed to a company by its owners (the shareholders).

Business loan:

Commercial Banks offer a range of business products and are the main source of funding for both business and personal borrowers. For more info, on business loans please refer to the following links: Or contact one of our business advisors for assistance

Angel Investors

Who and what are they?

Angels invest for the same reason other people do: to make money.

They hope that some of their investments will reap them high rewards in return for the high risks they are taking.

They are well-off people - often former company builders who are willing to put anywhere from $10,000 to half a million or more into promising start-up companies.


What are angels looking for?
  • high-growth companies, meaning companies that appear likely to grow at 30% to 40% annually and then either be bought or go public.
  • 10% to 15% of private companies fit that description. The problem is that "about 80% of the entrepreneurs think they're in that 10% to 15%." Many angels and angel groups are flooded with business plans that don't even feature a way for angels to make a profitable exit. These won't pass the first screen.
  • Visit www.bizangels.co.nz for more information on Angel investors
  • Visit www.escalator.co.nz for more information on raising capital

More info on Investors:

NZVCA - New Zealand Venture Capital Association - has comprehensive information on the New Zealand venture capital and private equity market.
Vcapital is an online angel investor network which links registered investors to private equity / venture capital / angel investment opportunities from a range of industries

The New Zealand Venture Investment Fund is a government initiative aimed at increasing the supply of venture capital available to New Zealand companies. It operates two programmes, the Venture Capital Programme and the Seed Co-Investment Programme.