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Innovative ideas drive the creation of new designs and exciting products that capture our attention. However, without careful consideration of usability, these cutting-edge features may confuse more than they delight.

Usability anchors innovation, ensuring that products are accessible and easy to navigate. Combined with good interaction design, it enables customers to benefit from advanced features without stumbling over complicated interfaces. However, balancing the scales between innovation and usability can be tricky for software teams and their stakeholders.

How do you prioritise a groundbreaking feature over enhancing existing features? How do you cater to customer feedback while still pushing the boundaries of what's possible? Let’s explore how UX design, design thinking, and a user-centred approach can help strike the right balance for your product development.

User-Centred Design

The dance between innovation and usability may seem complicated, but you can successfully choreograph it through a UX approach with user-centred design. Here we pay significant attention to the needs, desires, and constraints of your end-users at each stage of the design process. User experience tools like user stories, also a staple in agile development, are an excellent means to understand and rank features based on user needs.

Customer Feedback

An integral part of user-centred design is collecting customer feedback. You can source this valuable feedback through diverse channels such as customer surveys, interviews, and direct insights. This precious information doesn't just fuel your innovation but also aids in refining usability by highlighting potential user challenges.

Usability Testing

Usability testing is another critical aspect of the user-centred design approach. This allows real users to test the product or service in genuine scenarios. The insights derived from these tests offer a clear understanding of current product usage and potential areas of improvement.

When you bring together qualitative and quantitative data, you get a comprehensive picture of user needs. This panoramic view can guide you in crafting and prioritising your product roadmap. Remember, our journey is not just about adding new features; it's also about fine-tuning existing ones to ensure they meet their potential.

Design Thinking

Design thinking is an innovative approach that goes hand in hand with user-centred design. It's a methodology that encourages a deep understanding of challenges behind user interactions. It promotes empathy, allowing you to put yourself in the user's shoes to gain insights that may not be immediately apparent through traditional usability testing.

Incorporating design thinking into your product design and development process involves several key stages, including empathising with users, defining their pain points, ideating creative solutions, prototyping improvements, and testing these ideas iteratively. This approach fosters a culture of innovation and continuous improvement.

Striking the Right Balance

Imagine you're on the verge of an incredible software idea. It feels as if you're on a tightrope, with the urge to innovate on one side and the call for usability on the other. Finding equilibrium between these two elements is vital in developing a product that not only caters to customer needs but also pushes the limits of what's achievable in your field.

There’s a potential Catch-22: Give precedence to innovation over usability, and you risk developing a product brimming with state-of-the-art features that 50% of potential customers never find because they never made it through your complex onboarding. Conversely, put usability above innovation, and you run the risk of creating a product that, while user-friendly, lacks unique attributes and fails to set itself apart from its competitors. This balance is at the core of user experience design.

The Kano Model

So, how do you ensure you're focusing on features that bring value to the customer and align with your overarching business goals? A good example is a prioritisation framework, such as the Kano Model.

The Kano model supports product managers in the following ways:

• Evaluating potential features: It helps assess the importance and appeal of proposed product enhancements from a customer perspective.
• Categorising features: It provides a framework to classify features based on their value to customers and their distinctiveness in comparison to competitors.
• Balancing considerations: It promotes an equilibrium between high-value business features and customer demands.
• Aiding roadmap prioritisation: This systematic method facilitates the process of determining the sequence of product enhancements on the product roadmap.

As the Nielsen Norman Group outlines, The Kano model serves as a particularly effective strategy when factors like internal politics or a deeply ingrained development-centric culture come into play. This model seamlessly integrates UX research into the prioritisation process, making it an imperative step that encourages open discussions surrounding user expectations.

Remember, it's crucial to consider more technical aspects, including technical debt and scalability issues. While it's vital to maintain a laser-sharp focus on meeting customer needs, it's equally important not to overwhelm your product team or accumulate more technical debt than can be efficiently managed.

User Testing & Continuous Improvement

User testing is not a one-time event, but an ongoing commitment to refining and enhancing your product. It shines a spotlight on aspects of your product that might otherwise go unnoticed, playing a critical role in maintaining the equilibrium between innovation and usability.

Emphasising the voice of your users is the core purpose of user testing. It's like holding a mirror to your product and viewing it from a user's point of view. This process incorporates both qualitative data collection methods, such as user feedback and customer surveys, and quantitative ones like tracking user activity metrics and customer satisfaction ratings.

Identifying Mobility Issues

Executing user tests regularly allows for early detection of usability issues within your product's lifecycle. This proactive approach ensures that you can measure the potential impact on existing users before steering your product in the direction of a specific feature request. The objective isn't just to enhance your product but to deliver greater value to your customers.

Validation

Suppose you've gathered a batch of feature requests that resonate with a particular user need. Before dedicating substantial resources and time to these new features, it's vital to validate them. Each product feature should justify its existence based on the value it offers to customers and its alignment with the wider business goals.

Product Roadmap Prioritisation

An additional key aspect of user testing is its contribution to roadmap prioritisation. It can provide actionable data that assist you in sorting your product initiatives based on customer needs, business value, and the required effort. This strategic approach helps you avoid a backlog cluttered with less crucial features, ensuring your product strategy progresses in a structured and balanced way.

The Role of Product Managers

Product managers play a key role in harmonising innovation and usability in software development. They distil customer needs, shape your vision, and navigate product roadmaps to meet user demands and achieve company goals.

Key responsibilities for product managers include:

• Data Collection: Gathering customer data to shape product roadmaps and prioritise features.
• Feature Decoding: Deciphering crucial customer feature requests and align them with the company's strategic goals.
• Feature Prioritisation: Ensuring relevant focus on design and development tasks, they rank feature requests based on potential business value and the required effort.
• Utilisation of Frameworks: Using systematic prioritisation frameworks to help in the decision-making process.
• Stakeholder Collaboration: Working closely with key stakeholders such as the sales team and company leadership. Their goal is to align product strategies with broader business objectives.
• Communicating Product Vision: Articulate the product vision and provide a clear, concise overview of the product roadmap to all stakeholders.
• Technical Considerations: Taking into account technical elements such as potential technical debt and scalability when introducing or revising features.
• Product Backlog Management: Managing the product backlog, tracking progress and making necessary roadmap adjustments to stay aligned with the dynamic product strategy.

The role of a product manager, which in early stage startups can often be shared among team members, is essential to any tech company. It involves aligning customer needs with business goals, managing product roadmaps, and promoting continuous improvement. The role demands skills in data analysis, feature prioritisation, and communication with stakeholders. Despite being a demanding role, it's central to delivering a product that is innovative, user-friendly, and drives business success.

Summary

Achieving the fine balance between innovation and usability is key to success. This intricate process involves adopting a user-centred design approach, performing regular user testing, managing risks strategically, and the indispensable role of product managers. By staying tuned to user requirements and evolving market trends, you can create a high-quality innovative software that delivers a user-friendly, intuitive experience—and finds product market fit.

At Edition, we specialise in guiding software companies to align their products with user expectations and business goals. Our ambition is to assist our clients with creating products that not only stand out for the merit of their functionality, but also their intuitive and user-centric focus.

Are you ready to transform your balance of innovation and usability into a competitive edge? Let's work together to realise your vision.

Building a startup in Australia requires more than just resilience and a great idea. It also requires capital. Whether you're investing in R&D, launching a new product, or navigating a competitive market, financial support can be the key to accelerating your growth.

To support innovation and small business growth, the Australian government offers a range of grants tailored for startup businesses. We've compiled a comprehensive guide to the top funding opportunities available, focusing on tech startups across Australia.

What is a Startup Grant?

A startup grant is a sum of money for business support that is awarded to businesses that meet the eligibility criteria to support their idea or growth initiatives. These funds are not usually provided as a loan, and therefore repayment is not required. However, this is not free money in the sense that recipients of the funding opportunities are often required to detail in their submission how the funds will be spent and demonstrate the grant's impact on their business.

Nationwide Grants

Industry Growth Program

The Industry Growth Program provides substantial funding and support to help innovative startups and SMEs commercialise their projects and scale operations.

Application Criteria

To be eligible for the Industry Growth Program, applicants must:

• Be a high-growth SME or innovative startup
• Have a project with strong commercial potential in a priority industry

What you get

Funding of up to $5 million, which can be used for:

• Commercialisation activities
• Scaling operations
• Market expansion efforts

Learn more about the Industry Growth Program

CSIRO Kick-Start Program

The CSIRO Kick-Start Program provides matched funding to help startups and small businesses access CSIRO's expertise and capabilities for R&D activities.

Application Criteria

To be eligible for the CSIRO Kick-Start Program, applicants must:

• Be an Australian startup or SME
• Have an annual turnover of less than $10 million

What you get

Matched funding of $10,000 to $50,000.

This funding can be applied towards:

• R&D activities to develop new products, processes, or services
• Administrative and overhead costs

Learn more about the CSIRO Kick-Start Program

R&D Tax Incentive

The R&D Tax Incentive is a government initiative that provides tax offsets to eligible businesses undertaking research and development activities.

Application Criteria

For eligibility of the R&D Tax Incentive, applicants must:

• Be an Australian company conducting R&D activities
• Spend at least $20,000 annually on eligible R&D

What you get

Tax offsets of 38.5% or 43.5%, depending on the company’s turnover.

This incentive can offset costs related to:

• Wages for R&D staff
• Development of prototypes and experimental activities

Learn more about the R&D Tax Incentive

AgriFutures Australia RD&E

The AgriFutures Australia RD&E fund supports projects in the agriculture sector that aim to improve sustainability and innovation.

Application Criteria

To be eligible, applicants must:

• Be involved in agriculture or agribusiness
• Focus on research, development, or extension activities

What you get

Funding varies based on the scope of the project.

This grant can be used for:

• Research to improve agricultural practices
• Development of new farming technologies

Learn more about AgriFutures Australia RD&E

New South Wales Grants

MVP Ventures Program

The MVP Ventures Program supports startups and scaleups in New South Wales by funding the development and commercialisation of Minimum Viable Products (MVPs).

Application Criteria

To be eligible for the MVP Ventures Program, applicants must:

• Be based in New South Wales, Australia
• Be developing a new product, service, or technology with a strong market potential and a clear path to commercialisation

What you get

Funding of up to $200,000, covering up to 50% of eligible project costs.
This funding can be used for:

• Building and testing Minimum Viable Products (MVPs)
• Conducting market validation, testing and developing go-to-market strategies and scaling efforts

Learn more about the MVP Ventures Program

NSW Future Industries Investment Program

The NSW Future Industries Investment Program supports startups and SMEs in emerging industries within New South Wales.

Application Criteria

To be eligible for this program, applicants must:

• Be a startup or SME located in NSW
• Work in industries identified as future-focused, such as renewable energy or advanced manufacturing

What you get

Grants to support scaling and commercialisation.

This program focuses on:

• R&D and product development
• Creating sustainable, high-growth businesses

Learn more about the NSW Future Industries Investment Program

Minimum Viable Product (MVP) Grant

The MVP Grant supports pre-revenue technology startups in developing scalable solutions.

Application Criteria

To be eligible, applicants must:

• Have an ABN registered in NSW
• Be at the pre-revenue stage
• Own the IP or rights to commercialise the solution

What you get

Matched funding up to $25,000 for:

• Progressing from proof of concept to MVP
• Development and commercialisation activities

Learn more about the MVP Grant

Victoria Grants

Startup Grant – Illumina

The Startup Grant by Illumina supports startups focusing on genomics to innovate and grow.

Application Criteria

To be eligible, applicants must:

• Be a startup based in Melbourne
• Focus on genomics or related areas

What you get

Funding of up to USD $100,000.

This funding can be applied towards:

• Research and development in genomics
• Commercialisation of genomics-based solutions

Learn more about Illumiana’s Startup Grant

Games Release Fund

The Games Release Fund helps Victorian-based game developers bring their projects to market.

Application Criteria

To be eligible for the Games Release Fund, applicants must:

• Be a game developer or studio based in Victoria
• Have a project ready for production or release

What you get

Funding of up to $30,000.

This funding can be used for:

• Development, marketing, and promotion of games
• Bringing new games to market

Learn more about the Games Release Fund

City of Melbourne – Small Business & Social Enterprise Grants

These grants support businesses and social enterprises in the City of Melbourne that contribute to the local economy.

Application Criteria

To be eligible, applicants must:

• Operate a business within the City of Melbourne area
• Be developing innovative or sustainable business practices

What you get

Funding of up to $10,000.

This funding can be used for:

• Developing new products or services
• Implementing sustainability initiatives

Learn more about the Small Business & Social Enterprise Grants

AgTech Grants Program

The AgTech Grants Program supports Victorian AgTech startups in building business capability and scaling operations in the agriculture sector.

Application Criteria

To be eligible, applicants must:

• Be an early-stage AgTech startup based in Victoria
• Focus on innovative solutions for agriculture

What you get

Funding of up to $50,000, which can be used for:

• Product development
• Marketing and sales efforts
• Business capability enhancement

Learn more about the AgTech Grants Program

Queensland Grants

Ignite Ideas Fund (QLD)

The Ignite Ideas Fund is designed to help Queensland-based businesses commercialise innovative products and services.

Application Criteria

To be eligible for the Ignite Ideas Fund, applicants must:

• Be a Queensland-based SME
• Be working on a project with strong commercial potential

What you get

Funding of up to $200,000.

This grant can be applied towards:

• Prototyping and product development
• Scaling innovative products for broader market entry

Learn more about the Ignite Ideas Fund

Advance Queensland Industry Research Fellowships

These fellowships provide funding to researchers working with industry to tackle Queensland’s key challenges.

Application Criteria

• Be a Queensland-based researcher or industry partner
• Collaborate on innovative solutions in priority industries

What you get

• Funding of up to $300,000 over three years for research projects

Learn more about Advance Queensland Fellowships

Western Australia Grants

Innovation Booster Grant (IBG)

The Innovation Booster Grant helps WA-based startups and small businesses commercialise innovative ideas and projects.

Application Criteria

To be eligible, applicants must:

• Be a WA-based startup or small business
• Have an innovative project with commercial potential

What you get

Funding of up to $40,000, which can be used for:

• Research and product development
• Technology transfer and intellectual property
• Commercialisation support services

Learn more about the Innovation Booster Grant

X-TEND WA Program

The X-TEND WA program supports projects that deliver education and capability-building programs for innovators and investors.

Application Criteria

To be eligible, applicants must:

• Be capable of delivering educational programs in Western Australia
• Focus on supporting regional, indigenous, or female founders

What you get

Funding of up to $150,000 for developing and delivering educational programs, including:

• Corporate or investor education
• Regional founder initiatives

Learn more about the X-TEND WA Program

Regional Economic Development (RED) Grants

The RED Grants program is designed to stimulate economic growth and job creation in regional WA.

Application Criteria

To be eligible, applicants must:

• Operate a business or project in regional Western Australia
• Propose a project that contributes to economic development and job creation

What you get

Funding amounts vary, which can be used for:

• Projects that increase or sustain jobs
• Industry expansion or diversification
• Skills development and capability building

Learn more about the RED Grants

South Australia Grants

Seed-Start Grant

The Seed-Start Grant supports early-stage startups in South Australia with high-growth potential.

Application Criteria

To be eligible for the Seed-Start Grant, applicants must:

• Be an early-stage startup located in South Australia
• Demonstrate potential for significant economic impact

What you get

Matched funding of $50,000 to $500,000.

This grant can be used for:

• Scaling innovative business models
• Commercialising new products or services

Learn more about the Seed-Start Grant

Research, Commercialisation and Startup Fund (RCSF)

The RCSF supports South Australian entrepreneurs, researchers, and businesses to accelerate commercialisation and startup activity.

Application Criteria

To be eligible, applicants must:

• Be based in South Australia
• Have a project that leads to research commercialisation or startup growth

What you get

Funding amounts vary, supporting:

• Commercialisation of research
• Startup establishment and growth

Learn more about the RCSF

Australian Capital Territory Grants

Innovation Connect Grants (ICON)

The Innovation Connect Grants help Canberra-based startups commercialise innovative ideas.

Application Criteria

To be eligible, applicants must:

• Be a startup based in the ACT
• Demonstrate a strong commercialisation plan for their innovation

What you get

Funding of $10,000 to $30,000.

This funding can be used for:

• Prototyping and product development
• Taking innovations to market

Learn more about the Innovation Connect Grants

Social Enterprise Grant Program

The Social Enterprise Grant Program supports social enterprises in the ACT to expand their operations and enhance their impact.

Application Criteria

To be eligible, applicants must:

• Be a social enterprise based in the ACT
• Demonstrate a commitment to addressing social, cultural, or environmental challenges
• Have a clear plan for scaling their impact

What you get

Funding of up to $15,000 to support:

• Business planning and operational development
• Marketing, promotion, and community outreach
• Activities to increase the enterprise's capacity and impact

Learn more about the Social Enterprise Grant Program

Northern Territory Grants

Business Innovation Program (BIP)

The Business Innovation Program supports NT-based startups and entrepreneurs in developing and commercialising innovative concepts.

Application Criteria

To be eligible, applicants must:

• Be a startup or entrepreneur based in the Northern Territory
• Have an innovative idea with commercial potential

What you get

The program offers:

• Access to mentoring support to evaluate the potential of your innovation
• Financial assistance to develop a viable prototype
• Support in determining the market value of your product

Learn more about the Business Innovation Program

Aboriginal Business Development Program

This program supports First Nations-owned businesses in the Northern Territory to grow and create sustainable employment opportunities.

Application Criteria

To be eligible, applicants must:

• Be an Aboriginal-owned business based in the Northern Territory
• Have a clear business plan and demonstrate growth potential

What you get

Funding of up to $30,000.

This funding can be used for:

• Business planning and development
• Marketing and operational improvements

Learn more about the Aboriginal Business Development Program

Business Growth Program

The Business Growth Program provides funding for NT businesses to access professional advice and services aimed at improving performance, sustainability, and profitability.

Application Criteria

To be eligible, applicants must:

• Operate a small to medium-sized business in the Northern Territory
• Have an annual turnover of more than $75,000 but less than $10 million

What you get

Funding of up to $10,000 (50/50 co-contribution).

This funding can be used for:

• Business planning and strategy development
• Financial management and operational improvements

Learn more about the Business Growth Program

Pros & Cons of Startup Grants

Startup grants offer valuable financial support to emerging businesses, but they come with advantages and challenges, like any funding option. Understanding these can help you navigate the decision-making process more effectively.

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Other Government Support for Startups

Australia's government agencies support startups beyond growth grant opportunities, offering programs like the Export Market Development Grants (EMDG) from Austrade. This program helps businesses expand into international markets by reimbursing export-related expenses. Keep an eye out for its next grant funding round to take advantage of this opportunity.

These programs collectively aim to enhance Australian startups' digital capabilities, international reach, and environmental sustainability, offering a holistic support system for business growth and innovation. There is no precise template for which funding avenues are right for your business, and it is important to explore many options to find the right fit.

Landing Pads Program

The Landing Pads Program helps Australian startups expand globally by providing access to coworking spaces, mentors, and networking opportunities in five international ecosystems: San Francisco, Shanghai, Tel Aviv, Berlin, and Singapore. It supports startups in connecting with potential customers and investors to scale internationally.

Learn more about the Landing Pads Program

Digital Solutions – Australian Small Business Advisory Services (ASBAS)

Run by the Australian Government, ASBAS provides low-cost, high-quality advice to small businesses on a range of digital topics, including website development, social media marketing, and cybersecurity.

Learn more about ASBAS

General Australian Business Advice

Business.gov.au offers a range of tools and expert advice for startups and small businesses, including registering trademarks, understanding tax obligations, and identifying funding opportunities.

Learn more at Business.gov.au

Additional Funding Options

While Australia's government grants offer a solid foundation for funding assistance programs across many types of businesses, most startups will also need to explore additional financial avenues at some point in their journey.

Equity Financing

For startups ready to scale, equity financing presents a path to secure significant investment in exchange for a share of ownership. Not just funds essential for growth, equity financing often also comes with expertise, mentorship, and networks that can propel a business forward.

If you’re considering equity financing for your startup, take a look at these resources:

• Investor Directory: Explore leading investment groups fuelling Australia's tech startups with Edition's Investor Directory.
  
• Venture Capital Guide: Navigate venture capital with our comprehensive guide, from angel investors and accelerators to venture capital funds.
  
• Top Venture Capital Firms: Identify potential partners among Australia's leading VC firms.
  
• Venture Studios: Discover how venture studios reinvent startup development—read Edition's guide.

Debt Financing

Debt financing offers an alternative that can be less dilutive than equity options. Providers like Prospa and Mighty Partners offer small business loans tailored to startups' unique needs, enabling them to grow without giving up equity.

At Edition, we specialise in bringing visionary ideas to life. Whether you're a business owner navigating technology startup grants and small business grants or a co-founder seeking venture capital, our strategic design and development expertise is tailored for companies eager to make a difference—let’s talk.

In the last decade, New Zealand's tech startup ecosystem has experienced an extraordinary surge. Venture capital (VC) firms have emerged as instrumental partners, reshaping the trajectory of technology startups and propelling them toward significant valuations and IPOs on the NZX and beyond.

However, despite an abundance of VC firms eager to invest in innovative and forward-thinking startups, information on New Zealand's venture capital and angel investment landscape remains elusive, scattered, and outdated—with crucial insights hidden behind paywalls.

In this article, we present a comprehensive guide, shining a spotlight on the top VC players that are actively supporting and fuelling the growth of technology startups in Aotearoa in 2024.

Aera VC

• Stage: Seed, Series A, Series B
• Focus: Climate & Sustainability, Deep Tech
• Notable Investments: Solugen, 54Gene, Aqua Cultured Foods
• Location: Auckland (NZ), Singapore
• Website: aera.vc

Aera VC stands at the forefront of deep technology and sustainability investments, propelling the world towards a brighter future. They proactively identify and support visionary founders and teams dedicated to addressing pressing global challenges like climate change. With a VC fund that has a global network and unwavering commitment to positive change, Aera VC positions themselves as an exceptional partner for early-stage ventures tech startup companies striving to make a meaningful impact on a global scale.

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AirTree Ventures

• Stage: Seed, Series A, Series B
• Focus: Technology, SaaS
• Notable Investments: Canva, Linktree, Employment Hero
• Location: Sydney (Australia)
• Website: airtree.vc

AirTree is driven by a mission to provide unwavering support to Australian and New Zealand founders from the very beginning, firmly believing in their audacious visions. As dedicated long-term partners, AirTree Ventures goes beyond funding; they actively assist portfolio companies in essential recruitment endeavours, offering expert guidance on organisation design, employee experience, and compensation strategies. Additionally, founders gain access to a valuable network of experienced individuals who understand the intricacies of scaling startups.

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Blackbird Ventures

• Stage: Pre-Seed, Seed, Series A, Series B, Growth, IPO
• Focus: Technology
• Notable Investments: Canva, Zoox, SafetyCulture
• Location: Melbourne (Australia), Sydney (Australia), Auckland (NZ)
• Website: blackbird.vc

Blackbird Ventures, one of the largest and most active venture capital funds in Australia, focuses on supporting ambitious startups with a vision for global impact. They target technology companies that have the potential to generate over $100 million in annual revenue and have a strong track record of success. With a discerning eye for tech-driven startups with a lean capital requirement and high potential for rapid scaling, Blackbird Ventures commits to supporting founders from inception. They provide an exhaustive suite of resources, networking platforms, and programs to enhance startup success. Though they often lead investment rounds, they're also open to co-investment with other venture capitalists and making initial investments alongside angel investors through their angel networks.

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GD1

• Stage: Pre-Seed, Seed, Series A
• Focus: Deep Tech, SaaS, Hardware, Connected Hardware, Healthtech, Web3
• Notable Investments: Foundry Lab, Zenno, Orbica, Dawn Aerospace, Auror
• Location: Auckland (NZ)
• Website: gd1.vc

GD1 (Global From Day One) is a VC firm that adopts a "bottom-up" approach, supporting exceptional insights-driven, science and engineering-anchored New Zealand companies within Aotearoa’s vibrant, diverse tech ecosystem. GD1 boasts a globally experienced team (ex-founders, operators, engineers, and investors). Their portfolio companies gain access to leading global technology hubs and extensive connections to support market entry on a global scale. GD1 also provides comprehensive support from in-house advisory experts specialising in various aspects of the growth journey, from capital raising to go-to-market strategy and operational excellence.

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Hillfarrance

• Stage: Pre-Seed, Seed
• Focus: Gaming, Software, AI & Machine Learning, Climate Change
• Notable Investments: Scannable, Partly, In Game Collectibles
• Location: Auckland (NZ)
• Website: hillfarrance.com

Hillfarrance is an early-stage VC firm that invests in audacious Kiwi founders driving innovations in media, gaming, artificial intelligence, and climate change. With a strong emphasis on the pre-seed and seed funding stages, Hillfarrance provides invaluable support through connections, networking, and operational expertise. Setting themselves apart, they allocate 20% of their returns to portfolio company founders, fostering a collaborative environment and shared success. Additionally, they offer assistance in areas like connections, business development, human resources, and founder/co-founder well-being support.

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Icehouse Ventures

• Stage: Pre-Seed, Seed, Series A, Series B, Series C
• Focus: Sector Agnostic
• Notable Investments: Halter, FirstAML, Hnry, Sharesies, Caruso
• Location: Auckland (NZ)
• Website: icehouseventures.co.nz

Icehouse Ventures is a VC firm dedicated to supporting brave Kiwi entrepreneurs in their journey to build global companies from New Zealand. Icehouse Ventures looks for founders with unique insights and deep domain expertise, aiming to build industry-disrupting global companies, particularly in the tech sector. They have a team of experienced advisors and investors who are committed to providing guidance and helping innovative businesses grow and thrive—with a specialised community, called First Cut, for founders under 30. Their portfolio companies gain access to a wide network of resources, including other portfolio companies and investors, for talent acquisition, guidance, follow-on capital, and valuable insights to help their company thrive.

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Movac

• Stage: Pre-Seed, Seed, Series A, Series B, Series C
• Focus: Medical Devices, SaaS, Deep Tech, Healthcare, Aerospace
• Notable Investments: Vend, TradeMe, Mint Innovation, Dawn Aerospace
• Location: Auckland, Wellington (NZ)
• Website: movac.co.nz

Movac stands as one of New Zealand's most experienced technology investors, having actively supported Kiwi entrepreneurs since 1998. Their mission centres around tackling challenging problems in large markets, providing comprehensive support to tech teams throughout their entire journey. With a wealth of functional expertise, global connections, and extensive experience in commercialising and growing businesses, Movac is dedicated to empowering startups to reach their full potential.

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NZ Growth Capital Partners

• Stage: Pre-Seed, Seed, Series A, Series B
• Focus: Technology, Healthcare, Clean Energy
• Notable Investments: LanzaTech, Narative, Kami
• Location: Auckland (NZ), Wellington (NZ)
• Website: nzgcp.co.nz

NZ Growth Capital Partners (NZGCP) is a government-owned investment firm dedicated to supporting innovative and high-growth businesses and driving innovation in New Zealand's entrepreneurial ecosystem. With a commitment to fostering economic growth, they provide patient capital and strategic guidance to help companies realise their growth potential. NZGCP offers tailored investment funds for different stages of a company's development. Through their impactful investments, NZGCP plays a pivotal role in fuelling economic growth and propelling New Zealand's innovation landscape forward.

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Outset Ventures

• Stage: Pre-Seed, Seed, Series A
• Focus: Deep Technology (Energy, Hardware, Biotech, Aerospace, Advanced Materials)
• Notable Investments: Open Star, Dennison Technologies, Vertus Energy
• Location: Auckland (NZ)
• Website: outset.ventures

Outset Ventures is a dynamic venture capital firm and deep technology incubator specialising in specialising in early-stage founder-led science and engineering startups. They are the only New Zealand based deep technology investors with an in-house laboratory and workshop facilities. Their experienced team and investment committee bring capital, a vast network, and industry expertise to help their portfolio companies thrive.

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Pacific Channel  

• Stage: Seed, Series A, Series B
• Focus: Climate & Sustainability, Automation, Food & Beverage, Industrial, Deep Tech
• Notable Investments: Tasmanion, Geo40, CropX
• Location: Auckland (NZ)
• Website: pacificchannel.com

Pacific Channel is a New Zealand-based venture capital firm dedicated to supporting groundbreaking science and advanced engineering deep tech companies that address significant global challenges. With a thematic focus on improving quality of life, future of food, sustainable economy, and automation, they provide capital, expertise, and networks to companies at various growth stages. Pacific Channel's portfolio reflects their commitment to solving complex problems and driving positive change for a better future.

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Phase One Ventures

• Stage: Pre-Seed, Seed
• Focus: SaaS
• Notable Investments: Cotiss, Sugar Wallet, EasyRent
• Location: Auckland (NZ)
• Website: phaseone.ventures

Phase One Ventures is not just a venture capital fund. It's a community of early-stage company founders, a product and growth incubator program, and a committed supporter of the next generation of innovative New Zealand businesses. With a vision of creating a thriving and vibrant startup community, Phase One Ventures helps founders achieve product market fit, crystallise their vision, and identify growth engines. They provide pro bono support through mentorship, expert sessions, social catchups, and bi-weekly office hours, while also providing investment opportunities to companies that demonstrate significant progress.

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Punakaiki Fund

• Stage: Seed, Series A, Series B
• Focus: Technology, SaaS
• Notable Investments: Whip Around, Vend, Timely, Couchdrop
• Location: Auckland (NZ)
• Website: https://punakaikifund.co.nz/

Punakaiki Fund is one of New Zealand's original and most prominent venture capital firms, known for its early-stage venture investments with high growth potential. Founded in 2013, they offer more than just funding, providing mentorship to support startup success. While Punakaiki Fund has a wide investment mandate and seeks a diversified portfolio, they find B2B SaaS business models particularly attractive and have a strong track record in this space with notable investments in Vend, Timely, Moxion and Linewize. They have a strong Socially Responsible Investment Policy that precludes them from investing in certain sectors and high emissions industries (including crypto). With their experienced team and vast international network of advisors, investors and business owners/founders, Punakaiki Fund continues to make a significant impact on the thriving New Zealand startup ecosystem.

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Sparkbox Venture Group

• Stage: Pre-Seed, Seed, Series A
• Focus: SaaS, Diagnostic Technology, Communication
• Notable Investments: Xero, Mish Guru, Auror
• Location: Auckland (NZ)
• Website: sparkboxventures.com

Sparkbox Venture Group is a prominent investor in high-growth technology companies throughout the Asia-Pacific region. Their funding programs, including GD1 Seed, GD1 Fund II, and Sparkbox Investments, cater to startups at different stages of development. With a diverse portfolio of innovative companies, Sparkbox Venture Group is an active investor, supporting and nurturing startups and playing a pivotal role in driving their growth and success. Their expertise and financial backing have created valuable partnerships for ambitious entrepreneurs in New Zealand and beyond.

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WNT Ventures

• Stage: Seed, Series A
• Focus: AgriTech, Artificial Intelligence, Automation, Engineering, Sustainability
• Notable Investments: Mastaplex, CarbonCrop, FoundryLab, Mint Innovation
• Location: Tauranga (NZ)
• Website: wntventures.co.nz

WNT Ventures is a venture capital firm that invests in ambitious deep tech founders. They provide high conviction support, connecting founders to resources, expertise, and support to build global businesses. WNT Ventures is dedicated to advancing deep technology as one of New Zealand's fastest-growing and highest-value creation sectors. They seek pre-revenue tech companies with defensible intellectual property serving global markets. In addition to capital, WNT Ventures offers hands-on support through pre-incubation funding grants, incubation programs, and valuable resources.

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Summary

New Zealand's startup scene is thriving, with unprecedented growth and investment opportunities a range of potential investors. The government's commitment to fostering entrepreneurship and the increased availability of early-stage investment make it an ideal destination for tech startups.

Remember, the journey to raising capital is not just about the money or reaching a particular valuation in your seed round—it's crucial to find partner(s) and shareholders who also share your vision and can provide the support you need to succeed. Taking care in due diligence to gain the right support can pay dividends, allowing you to navigate the entrepreneurial journey and make a lasting impact on the world.

If you're a tech startup (or a small business with ambitious goals) in New Zealand, connect with the venture capital firms mentioned in this article, present your ideas, and unleash the potential of your business!

New Zealand tech startups can access a range of grants and support services beyond venture capital, such as through Callaghan Innovation. NZTE also has resources for if your business plan is to raise capital. Alternative funding methods (such as via private equity, crowdfunding, or with a venture studio) may be helpful to explore.

Looking for Aussie startup fundraising opportunities, such as Square Peg Capital in New South Wales or Startmate in Victoria? View Australia’s Top Venture Capital Firms For Tech Startups [2024].

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