RAISING CAPITAL FAQS

Below you’ll find answers to some of the questions we get asked most often about working with the NZTE Investment team when raising growth capital. If you have further questions, please get in touch and a member of our team will be in touch shortly.

Why does the Government offer this service?

The New Zealand Government is dedicated to growing a productive, sustainable and inclusive economy, for the good of all New Zealanders. One important way of achieving this is through encouraging smart domestic and international investment to stimulate growth.

Currently there are critical gaps in the market – growth-stage companies often have limited connections and capability, while greenfield projects are inherently high-risk with long lead times, yet provide huge economic benefit to New Zealand. There is a strong appetite to accelerate the growth of these areas.

What are the criteria (e.g. revenue, investment amount, etc) to qualify for NZTE Investment assistance?

We work with a diverse range of organisations and there are no strict qualifying criteria. However, on a broad scale, we typically work with:

  • Organisations seeking growth who are internationalising or have international aspirations and potential. We also look at if you have a potentially scalable business model – demonstrating revenue, closeness to customer or lead investment.
  • Greenfield projects that have potential commercialisation abilities and deliver economic well-being to New Zealand.
Do we have to be export focussed to get NZTE Investment assistance?

You don’t have to be currently export-focussed, but you should have international aspirations and potential.

Can I trust the investment team with confidential and commercially sensitive information?

Absolutely! The NZTE Investment team consists of 50 dedicated, investment professionals who have operated previously in the private sector. We understand and respect client confidentiality.

With honesty and trust as key characters, we operate in the best interests of our customers, value great communications and have well-developed systems in place to ensure the confidentiality and safety of your information.

Will you work with me if I also have a private sector advisor?

It depends. We believe the private sector plays a critical role in helping New Zealand organisations raise capital and we have great relationships with many of the advisors in the market. But we look to complement, not duplicate the work of the private sector. We will look to ensure that we can add value or fill a gap in any transaction we work on, for example, connecting you with great international investors.

What’s the difference between a capital raise and a greenfield investment opportunity?

A company capital raise is where there is an existing New Zealand company that is seeking investment for international growth. They may be seeking capital to enter new markets, ramp up product development or sales, or expand production capacity. NZTE Investment offers preparation support on business model development, financial model and investor profiling.

Greenfield opportunities are generally complex projects for new operations that create employment opportunities at scale. An example of a greenfield deal could be a foreign company establishing operations in New Zealand, or a New Zealand company undertaking a new project. NZTE offers support on developing business case feasibility and gaining local market context and connections, as well as support on business model development, financial model and investor profiling.

What proportion of your capital raises do you seek from domestic investors, and what proportion from offshore investors?

We do not have a set target or preference for domestic or offshore investments. Once a deal is ready to market, we promote the opportunity to a highly targeted segment of our investor network, based on the interests and needs of the business, for example, we look at what markets they are expanding in and what skills and needs they have beyond money.

Therefore, the raises in the past have come from a diverse and balanced group of investors, both from New Zealand and the rest of the world.

How does NZTE Investment assist NZ organisations seeking capital - what is your process?

Refer to the Getting started with NZTE page for a comprehensive overview of how we can assist you in your capital raise.

How do you set up a company in New Zealand?

We’re the easiest country in the world to do business in because there are few restrictions on establishing, owning and operating a business here. In fact, the process of reserving a name and incorporating your company can be completed in a matter of hours. Visit the New Zealand Companies Office to begin the process.

Contact our Investment team

For more information about how we can help you prepare for and access growth capital, send us a message and one of our team will be in touch with you shortly.