Selecting the Venture Capitalist Investor

The NZVCA represents most professional VC and PE organisations in New Zealand. Basic information about each member's investment preferences is set out in the Members section of this website.

Before selecting a venture capitalist, the entrepreneur should study the particular investment preferences set down by the VC or PE firm. Often venture capitalists have preferences for particular stages of investment, amount of investment, industry sectors and geographical location.

Once a short list of potential venture capitalists has been drawn up, it is often a good idea to contact the venture capital firm and request information that will clarify the type of investments they favour.

An investment in an unlisted company has a long-term horizon, typically three to seven years. It is important to select venture capitalists with whom it is possible to have a good working relationship.

Often businesses do not meet their cash flow forecasts and require additional funds, so an investor's ability to invest further funds if required is also important.

Finally, when choosing a venture capitalist, the entrepreneur should consider not just the amount and terms of investment, but also the additional value that the venture capitalist can bring to the company. These skills may include industry knowledge, fundraising, financial and strategic planning, recruitment of key personnel, mergers and acquisitions, and access to international markets and technology.