InTouch : Guide to finding funding for budding entrepreneurs

Ever wondered how TradeMe got its initial funding? new book has been launched to explain to budding entrepreneurs the process of raising funds from angel investors and venture capitalists.
Fuel For Your Business is book aimed at young, early-stage companies looking for funding to help them grow, with focus on what is termed ‘rocket fuel’ for business growth – angel and venture capital investment.
Colin McKinnon, executive director of the New Zealand Private Equity & Venture Capital Association, which has produced the book, said the publication will educate entrepreneurs on the options and opportunities currently available for young start-up companies.
“New Zealand has relatively young angel and venture capital investment market for early-stage companies, so there are many young businesses and business owners who know relatively little about this type of investment and how to access it.
“Fuel For Your Business is aimed at these young companies. There are many types of funding and investment – including family, friends, and banks – and not all companies are suited to angel and venture capital investment.
“Not many even know what ‘angel’ investing is. Angels are known as such because they’re experienced business people who invest not just money but also some time and effort to help new businesses to grow. The last few years have seen the emergence of number of angel groups throughout the country. Our venture capital industry has also grown considerably over the past six years.
“These sources of capital are becoming increasingly important in helping young New Zealand companies to grow, and for commercialising the research emerging from our universities and research institutions. TradeMe, for example, sought and found angel investment to fund its early growth.
“The guide explains how young companies can go about getting funding – how to find investors, how to do the deal, the sort of documentation which is required, errors and pitfalls to avoid, and what to do if they can’t get funding,” McKinnon said.