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Startup Pitch Decks: What Investors Want to See

Startup Advice
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min reaD
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Jan 20, 2025

Creating a compelling startup pitch deck is a key step in securing funding and effectively communicating your business idea. Beyond presenting data and metrics, your pitch deck should convey the heart of your startup’s vision and strategy – turning numbers and insights into a narrative that captures attention and creates confidence.

For early-stage entrepreneurs and venture capital firms (along with other potential investors), the stakes are high on both sides. Investors need to quickly grasp your value proposition, understand your market opportunity, and see why your solution stands out. A well-crafted pitch presentation ensures clarity while highlighting the key points investors care about.

A pitch deck that combines clear structure with compelling storytelling can transform complex information into an engaging and persuasive argument, making your startup unforgettable when fundraising. Investors value a simple pitch deck that communicates your vision effectively and showcases your potential to become a high-growth business.

The Basic Structure

A pitch deck is more than just a series of slides; it forms your story. A business pitch deck is typically made up of 10 to 15 slides, each serving a specific purpose – from introducing your mission to laying out your funding ask. For early-stage startups, creating a well-structured slide deck can be the difference between capturing investor interest and momentum fizzling out.

Structure matters because it ensures your presentation flows logically, guiding potential investors through your narrative without confusion. Each slide builds on the last: the problem sets the stage, the solution sparks interest, and the traction slide provides proof of growth potential.

By anchoring your content in this framework, you highlight your competitive advantage and eliminate unnecessary distractions. Whether it’s your first pitch deck or a refined version for a seed round, structuring your deck with intent showcases your startup’s vision and helps investors feel confident in your ability to execute it.

When done right, a winning pitch deck stands out, showcasing a progression to becoming a highly successful startup.

Cover Slide

The cover slide sets the tone for your entire pitch deck and is your first chance to make a strong impression. It should deliver a clean, concise intro to your startup and its mission, adhering to best practices for pitch decks. Use a simple pitch deck design with considered fonts and high-quality visuals that align with your brand.

Take inspiration from the Airbnb pitch deck, which featured a tagline as its focal point: “Book rooms with locals, rather than hotels.” This minimalist and evocative message perfectly communicated Airbnb’s unique value proposition while setting the tone for the rest of the presentation. Similarly, your cover slide should highlight your mission in a way that resonates with potential investors.

First impressions are vital; a well-crafted cover slide demonstrates clarity, focus, and the ability to communicate effectively—qualities that venture capitalists and other investors value in a successful pitch deck. Tools like Canva and Google Slides can simplify this process while maintaining professionalism.

What to Include

  • Company name and logo
  • One-liner: Capture the problem you solve or the market opportunity you address.
  • Tagline: Reflect your unique value proposition or mission.
  • Optional: Contact details and the date of the pitch deck presentation.

What to Avoid

  • Too much text: Keep it simple and scannable.
  • Distracting visuals: Avoid images or designs that take focus away from your message such as overused gradients.
  • Over-clutter: Stick to essential information only.

The Problem

Investors need to understand the pain points your target audience faces and why solving this problem is critical to your startup’s success. Your problem slide should clearly outline the issue, its significance, and why current solutions fall short. Framing the problem as an opportunity sets the stage for your solution and highlights the market’s key metrics that signal growth potential.

Use specific data and relatable examples to make the problem tangible and urgent, addressing the “why now” question that often resonates strongly in an investor pitch deck.

For startups preparing for funding rounds, from pre-seed and seed rounds to Series A to Series C, this slide is critical in establishing the need for your solution and showcasing the scalability of your approach. Incorporating credible data is essential and not something you can just spin up from a startup pitch deck template.

Presenting the problem with a clear link to your go-to-market strategy can further strengthen investor confidence in your approach.

What to Include

  • Core problem: A concise, well-defined description.
  • Supporting data or examples: Highlight the scale and urgency of the issue.
  • Consequences: Show what happens if the problem remains unsolved.

What to Avoid

  • Vague statements: Ensure your problem is clear and backed by specifics.
  • Broad claims: Avoid overly generalised issues without context.
  • Missing urgency: Emphasise why the problem needs immediate action.

The Solution

Once you've established the problem, the solution slide should showcase how your product or service effectively addresses it. This is your opportunity to demonstrate that your approach is both innovative and uniquely positioned to succeed. Like an elevator pitch, the content on this slide should be concise, engaging, and impactful.

Use visuals such as diagrams or workflows to make your solution tangible and compelling, ensuring it aligns with the clarity seen in a great pitch deck.

Consider your real differentiator – for instance, highlight how your product leverages automation to solve pain points or streamline processes. This ensures your VC pitch deck resonates with investors by showcasing cutting-edge technology and clear value. Keep your presentation succinct with effective bullet points that highlight key benefits and differentiate your solution from alternatives.

What to Include

  • Clear explanation: Describe your product or service in simple, concise terms.
  • Unique features: Highlight benefits that set your solution apart.
  • Supporting visuals: Include diagrams, screenshots, or workflows to make it real.

What to Avoid

  • Overloading details: Avoid excessive technical descriptions or irrelevant features.
  • Jargon: Keep it simple and easy for non-technical investors to understand.
  • Weak differentiation: Clearly articulate why your solution outperforms others.

Your Product

Brings your solution to life, showcasing its functionality, usability, and impact. This is where investors need to see how your product works and why it stands out in the market. For SaaS startups or other tech-driven solutions, this slide should highlight the user experience and the practical application of your product.

For instance, an early Uber pitch deck used a slide illustrating how a rider requests a car, the driver arrives, and the trip is completed – all in just a few actions. This kind of visual storytelling makes your product’s value immediately clear, even to those unfamiliar with the specifics.

A well-crafted product slide also reassures investors about your growth potential, an essential aspect of startup funding discussions. By tying your product’s benefits to the core problem you’re solving, you’ll demonstrate its relevance and scalability.

What makes a great pitch deck is the ability to connect emotionally with investors while providing clear, credible data – your Product slide is key to achieving that balance.

What to Include

  • High-quality visuals: Screenshots, product photos, or a demo of the interface.
  • Key features and benefits: Highlight what solves customer pain points effectively.
  • Real-world examples: Show how your product delivers value in practice.

What to Avoid

  • Over-reliance on text: Avoid long descriptions—let visuals tell the story.
  • Feature dumping: Focus on benefits tied directly to solving the core problem.
  • Unverified claims: Provide credible data or examples to validate your product.

Team

A critical component that showcases the expertise and leadership driving your startup. Investors often place as much importance on the people behind the business as they do on the idea itself.

Highlighting your founding team, including their skills and experience, demonstrates that your crew has the vision and capability to execute your plan and overcome challenges. For startup founders based in innovation hubs (like Silicon Valley), this slide can also show access to valuable networks and resources.

A well-presented team slide inspires confidence that your startup is well-positioned for success and aligned with its company purpose. Leverage design tools you are proficient in (shout out to those PowerPoint super-users) and also showcase your LinkedIn profiles to further emphasise your team’s strengths.

What to Include

  • Core Team Members: Names, roles, and key qualifications or achievements. Highlight the co-founders and their relevant expertise.
  • Advisors and Partners: Highlight industry experts or board members adding credibility.
  • Collaborative Strengths: A brief statement about how the team’s combined skills align with the startup’s goals.

What to Avoid

  • Irrelevant Details: Avoid including lengthy biographies or unrelated accomplishments.
  • Cluttered Design: Overloading the slide with too many names or excessive text.
  • Weak Team Presentation: Failing to emphasise how the team’s expertise drives the startup’s success.

Unique Value Proposition (UVP)

The core reason why your product stands out and why customers will choose it over competitors. This slide is your opportunity to demonstrate what makes your solution distinct and valuable, to both customers and investors. A strong UVP is critical for convincing investors that your startup has a competitive edge and the ability to capture market share.

A compelling UVP is backed by evidence, showing investors that your product is not only innovative but also resonates with your target audience. No matter if you’re pitching at the pre-seed stage or to a venture fund, your UVP should clearly articulate why your solution addresses a unique need in the market.

Highlight how your offering surpasses competitors, supports business traction, and delivers measurable value.

What to Include

  • One-Liner UVP: A clear, concise statement summarising your competitive advantage.
  • Competitive Landscape: A brief outline of key competitors and their limitations. Include specifics, like comparisons to a well-known VC-backed company or insights from pitch deck examples.
  • Supporting Evidence: Data, testimonials, or performance metrics validating your claims. For instance, mention endorsements from programs like 500 Startups or early traction gained through partnerships or a relationship with another VC firm.

What to Avoid

  • Vague Claims: Phrases like “best in the market” without proof.
  • Ignoring Competitors: Failing to acknowledge and differentiate from existing solutions.
  • Excessive Complexity: Overloading the slide with unnecessary details or jargon.

Validation

Validation provides tangible proof that your product or service is resonating with the market. This is where you showcase evidence of demand, adoption, or traction, reassuring investors that your solution has real-world credibility. Strong validation reduces perceived risks and demonstrates that your startup is on a positive trajectory.

Investors want to see that your idea isn’t just a concept but a viable solution backed by data, testimonials, or industry recognition. For instance, if your startup is a Y Combinator graduate, highlight it as a seal of credibility. Similarly, Intercom’s first pitch deck secured seed funding in 2011 by emphasising its customer-centric innovation and showcasing how this approach resonated with early adopters, ultimately laying the foundation for scaling a SaaS business.

Validation also signals that you’ve achieved product-market fit or are well on your way to it. Buffer’s first pitch deck, in 2011) emphasised clear month-over-month growth and testimonials from early adopters, helping investors understand the product’s traction.

By leveraging strong metrics and examples, as demonstrated in the Facebook pitch deck – where clear month-over-month growth and active user engagement stats were central – you can effectively highlight your credibility and market impact. You may consider utilising data from your own CRM for transparency and relevance.

What to Include

  • Proof of Demand: Metrics such as user acquisition rates, revenue growth, or engagement stats. Use graphs to visualise key data points like month-over-month user growth or increasing revenue streams.
  • Testimonials or Case Studies: Stories from early adopters or customers highlighting your product’s impact.
  • Partnerships or Endorsements: Collaborations, media features, or recognition from reputable organisations. Highlight if a VC fund or well-known partner is backing your product.
  • Financial Projections: Showcase projected growth over the next quarters, linked to validated demand and adoption trends.

What to Avoid

  • Vanity Metrics: Data like app downloads without showing active usage or retention rates.
  • Unverified Claims: Any figures or statements that lack supporting evidence or context.
  • Irrelevant Examples: Including anecdotes or data that don’t directly validate your solution’s success.

Market Opportunity

Provides the context for your startup's potential, demonstrating the size, growth dynamics, and untapped areas within your target market. This is your chance to showcase your market research and why the problem you're solving exists within a lucrative and expanding industry, making your startup an attractive investment opportunity.

A strong valuation is often tied to addressing large, growing markets. Investors are looking for startups that target large, addressable markets capable of delivering significant returns. By clearly defining your market size and the trends shaping it, you can highlight how your solution fits into broader industry changes. 

Whether you’re in tech, e-commerce, or a niche B2B space, aligning your market trends with measurable outcomes will strengthen your case. Additionally, highlighting how social trends or social media marketing strategies amplify your reach can add further weight to this section.

Similarly, showcasing competitive gaps and emerging opportunities in your market demonstrates a deep understanding of its nuances, making your pitch even more compelling to investors.

Takeaways from good pitch decks, such as Dropbox's, highlight the importance of addressing universal pain points with simple, user-friendly solutions. Dropbox’s pitch, used to secure a seed round led by Sequoia Capital, framed storage as a common frustration, offering a seamless, intuitive solution that required no behavioural change, driving viral adoption. Drawing inspiration from other successful decks, like Airbnb and WeWork, which tied their market insights to cultural and technological shifts, you can demonstrate how your solution aligns with emerging trends and redefines an industry, resonating strongly with potential investors.

What to Include

  • Market Size Breakdown: Present the Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and your projected market share. Use precise figures and credible sources to back your estimates.
  • Target Customer Segments: Clearly define the demographics, behaviours, and specific needs of your primary audience.
  • Market Trends: Highlight emerging shifts, such as technological advancements, regulatory changes, or consumer behaviours driving growth. Infographics may be helpful here.
  • Growth Potential: Include historical or projected growth rates, citing sources like market reports or government publications.

What to Avoid

  • Inflated Projections: Avoid unrealistic market sizes or growth figures without credible sources.
  • Generic Descriptions: Vague or broad claims about the market that lack specificity or data.
  • Ignoring Competition: Overlooking established players or not addressing why your solution will capture market share.

Business Model

Explain how your startup generates revenue, scales sustainably, and ultimately leads to profitability. For investors, this slide answers critical questions about your startup’s long-term viability and business plan. It's not just about how you’ll make money – it’s about demonstrating that you understand the dynamics of your industry, your pricing strategy, and your growth potential.

A strong business model reassures investors by showing you’ve anticipated challenges and mapped out a clear path to success. Take cues from companies funded by the likes of Icehouse Ventures and Sequoia Capital, which often emphasise scalability and efficient cost structures in their financial models. Whether it’s recurring revenue through subscriptions or a unique monetisation strategy, clarity is key.

What to Include

  • Revenue Streams: How your startup makes money (e.g., subscriptions, licensing, direct sales).
  • Pricing Strategy: Your pricing model and how it caters to different customer segments.
  • Scalability: Demonstrate how your model can grow profitably over time.

What to Avoid

  • Complexity: Avoid overly intricate revenue models that confuse rather than clarify.
  • Vague Projections: Unsupported or unrealistic financial goals without a roadmap to achieve them.
  • Ignoring Challenges: Failing to address potential risks or barriers to revenue growth.

Traction

The traction slide is your opportunity to present hard evidence of your startup’s progress. Investors want proof that your business model works and has already begun to gain momentum. This slide validates your business, showing that it’s more than a big idea—it’s a viable and growing opportunity.

Highlighting key metrics like revenue growth, customer acquisitions, or meaningful engagement rates builds confidence. Take inspiration from successful startup pitch deck examples like those of Airbnb and Uber, which demonstrated traction through adoption rates and early customer testimonials. A clear roadmap for scaling reinforces the idea that your business is poised for growth.

Highlighting traction can include metrics like customer growth or revenue increases. Tools like Moz can validate your startup’s online visibility, showcasing improvements in SEO metrics like domain authority or organic traffic. Paired with analytics from Mixpanel or Mattermark, this data strengthens your case for market traction.

What to Include

  • Key Milestones: Showcase major achievements such as product launches, partnerships, customer acquisitions, or regulatory approvals.
  • Growth Metrics: Present clear data like monthly active users (MAU), revenue growth, retention rates, or customer lifetime value (LTV).
  • Engagement Metrics: Highlight meaningful user behaviour metrics such as daily active users (DAU), churn rates, or conversion rates from free trials to paid accounts.
  • Roadmap for Growth: Share your plans for scaling and building on current success.
  • Partnerships or Endorsements: Mention collaborations, media features, or endorsements from reputable organisations or key players.

What to Avoid

  • Vanity Metrics: Numbers like downloads without context or active engagement rates.
  • Irrelevant Achievements: Focus only on metrics and milestones that directly support your growth story.
  • Overhyping: Avoid exaggerating progress without evidence to back it up.

The Ask

Where you clearly outline your funding requirements and how you plan to use the investment. This is a crucial opportunity to connect your financial request with the tangible growth goals and milestones of your startup.

Investors need to see a clear, well-thought-out funding plan. A transparent breakdown of your funding requirements demonstrates strategic planning and reassures investors that their capital will be put to good use.

What to Include

  • Funding Amount: State the exact amount of capital you're seeking.
  • Allocation of Funds: Breakdown of how the funds will be used (e.g., product development, marketing, team hiring).
  • Expected Outcomes: The measurable milestones the investment will help you achieve (e.g., expanding to new markets, reaching specific revenue goals, or preparing for your Series B funding round to accelerate growth).

What to Avoid

  • Vagueness: Avoid unclear funding requests without a specific allocation plan.
  • Overly Ambitious Claims: Be realistic about what the funding will accomplish.
  • Lack of ROI Explanation: Investors want to see how their investment will generate returns.

Conclusion

Your pitch deck is more than a series of slides – it’s your opportunity to tell a story that captivates investors, showcases your startup’s potential, and demonstrates your vision for success. By balancing compelling data with a cohesive narrative, you can create a deck that leaves a lasting impression and inspires investor confidence.

Investors want clarity, focus, and personalisation. Tailoring your pitch to their interests, highlighting the market opportunity, and aligning your presentation with their priorities can significantly enhance your chances of securing funding. Design plays a critical role, too – a visually appealing, professional deck reflects your attention to detail and ability to deliver with impact.

As you refine your pitch deck, rehearse your delivery, anticipate questions, and continuously improve based on feedback. This preparation ensures you’re ready to present your business with confidence and enthusiasm, setting the stage for productive conversations with investors.

If you’re ready to craft your best pitch deck and need expert guidance, let’s talk.

Scott Kennedy
Co-Founder & UX Director at Edition
Scott has a rich agency background supporting global brands with digital transformation. Today he’s committed to helping ambitious founders shape tomorrow with technology. Weekends are spent gardening with 90's hip-hop in his ears.
Reid McLeay
UX Designer at Edition
Reid has years of startup experience, is a skilled UX advocate and Webflow expert, and focuses on crafting digital solutions with intuitive experiences. Outside of work, he enjoys time in nature and supporting conservation.

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Startup Advice
Building a tech startup? Discover how a Venture Studio can support your journey and increase your chances of success.
min reaD

Building a technology company from the ground up is a challenging endeavour. From raising your first round of venture capital to assembling a world-class team, there are myriad challenges, especially for those lacking industry expertise. Given that 90% of startups fail, exploring ways to increase your chances of success is essential.

Enter the venture studio; a collaborative working model first adopted by Idealab in 1996. By combining industry expertise, resources, hands-on support, and valuable learnings from success stories and failures, venture studios offer more than traditional funding avenues. They provide a supportive environment for tech entrepreneurs on a tight budget, facilitating capital raising and collaborative approaches to launching new ventures successfully. Across Aotearoa New Zealand and Australia this model is gaining traction, helping startups achieve higher valuations and sustainable growth.

What is a Venture Studio?

A venture studio (or startup studio) collaborates closely with founders and founding teams to build new companies and help them find product-market fit. They often assist in assembling the founding team of early-stage startups to scale the business. Unlike traditional venture capital funds, a venture studio embeds itself within the startup's operations and strategic decision-making, acting as a co-founder actively participating in the company's expansion.

The venture studio business model, popularised in Silicon Valley, leverages deep industry know-how and a financial model designed to yield a higher success rate. This approach can result in an increased rate of successful startups compared to traditional venture capital methods. By integrating resources, expertise, and hands-on support, venture studios offer a comprehensive framework that nurtures startups from inception to market success.

How do Venture Studios Work?

The venture studio model offers a unique approach to turning innovative ideas into successful businesses, distinguishing themselves from traditional startup support systems through an active, holistic process.

Here's a general overview of how they work:

Ideation & Investigation

  • Process: Venture studios serve as hubs for creative ideas to be challenged and evolve further. These ideas might be sourced from within the studio itself, come from founders and startup teams outside the studio, or external collaborators. Ideas undergo meticulous evaluation for market potential, feasibility, and alignment with the studio's expertise.
  • Outcome: A well-defined concept with a clear understanding of the target market, potential challenges, and opportunities. Concludes with a comprehensive concept ready for further exploration and market validation.

Validation

  • Process: Ideas undergo rigorous testing against market realities. This involves in-depth competitor research, user interviews, business model consideration, and feasibility studies to assess the viability of the proposed venture — ensuring the concept holds promise and aligns with real user needs and market opportunities.
  • Outcome: The outcome of the validation phase is to gain a better understanding of whether the idea can meet genuine market needs before further time, energy, and resources are committed. This helps a new startup de-risk itself and increases the likelihood of success for the venture.

MVP Design & Development

  • Process: The venture studio (or venture builder) will shift into execution, prioritising key components of a first release based on a defined budget and desired timelines before bringing the idea to life. Founders collaborate with in-house experts across product design, product development, marketing, and strategic planning to refine an MVP solution and launch strategy, establishing a solid foundation for future growth.
  • Outcome: A tangible MVP – a digital product or service ready for market entry, like the first version of a generative AI mobile app designed to translate Kiwi slang for newcomers and tourists. By leveraging the expertise of the studio and focusing on core features, the MVP is designed to address user pain points and provide immediate value to the target audience. Choice as.

Launch

  • Process: Once an MVP is built, venture studios assist in preparing the startup for market entry. This may involve branding, development a marketing website, and social media presence. Some startups will opt for a soft launch, conducting closed beta trials with potential customers while others will launch to the public from day one. The goal is to create a compelling market presence and generate initial traction for the product.
  • Outcome: The outcome of the launch phase is market entry. The venture studio aims to position the product for maximum impact and user adoption when the product steps onto the market stage, ready to captivate its audience.

Scaling

  • Process: As the venture gains traction and demonstrates scalability, venture studios will typically play a role in supporting its continued growth. This can involve support securing additional funding, evolving the MVP into a more polished solution based on user feedback, and expanding the team. It's important to note that venture studios typically don't accompany ventures to the point of an IPO; rather, they facilitate growth until the venture is independently flourishing.
  • Outcome: The outcome of the scaling phase is to facilitate new opportunities for growth and success. By leveraging established networks and industry connections, the studio aims to open doors for the venture that might otherwise be inaccessible. This could include opportunities for acquisition, strategic partnerships, or other avenues for expansion.

Off-boarding

  • Process: Off-boarding marks a pivotal moment for a startup, transitioning from venture studio-supported growth to a thriving independent company. This milestone reflects the venture's readiness to navigate the market confidently with the support of an internal team, embodying the culmination of a successful partnership that has equipped the venture for sustained success.
  • Outcome: Achieving independence is a testament to the entrepreneurial venture's potential and the value of the guidance provided by the partnering venture studio. This phase celebrates the venture's journey from concept to a competitive market leader.

Benefits of Venture Studios

Venture studios offer a number of key benefits that are particularly valuable to founders navigating the complexities of launching and growing a successful technology company.

Here’s a breakdown of some of these key benefits:

Risk Reduction

Venture studios help mitigate the risks inherent in starting a tech company. Leveraging their collective experience, they validate new business ideas and provide valuable guidance to startups through the early stages, ultimately increasing the likelihood of success.

Achieve More for Less

By leveraging their expertise and often accepting sweat equity (through mechanisms like SAFE notes), venture building with a venture studio can reduce the effective hourly rate of your startup’s development. This means that with a given budget, startups can accomplish more extensive outcomes or achieve a higher quality minimum viable product (MVP) compared to traditional funding avenues.

Essentially, startups can expand their resources further, unlocking the potential for greater innovation, new business opportunities and market readiness without sacrificing equity or quality.

Easier Access to Funding

With their established networks, venture studios can make fundraising less daunting. They connect startups with outside investors, facilitating the financial backing necessary for continued growth after launch. Depending on the venture studio, they might also be able to position the new venture in a way that is more attractive to external investors; resulting in the ability to raise more from venture capitalists for less equity.

Access to a Collaborative Ecosystem

Partnering with a venture studio helps you enter an environment where collaboration is the norm. Entrepreneurs get to rub shoulders with experienced mentors, software experts, industry insiders, and fellow founders and portfolio company teams, creating a rich environment for knowledge exchange and support. Venture studios are often able to intro you to who you need to speak, like the ideal mobile app developer just when your team needs them.

Shared Resources

One of the practical perks of venture studios is their provision of shared resources. These can include but are not limited to office space, equipment, market research and essential services like marketing support or software development. This helps to not only cut down operational costs in a startup’s early stages, but also allows founders and co-founders to focus more on the strategic aspects of their business.

Accelerated Market Entry

The path from idea to go-to-market can be significantly shortened with the support of a venture studio. Thanks to their expertise and streamlined processes, startups can navigate the process of early-stage validation and product development more smoothly, to ensure a faster, more confident launch.

Types of Venture Studios

Not all venture studios are the same. They come in various forms, tailored to the unique needs of the startups they seek to support. Understanding what makes each unique can help entrepreneurs feel confident in their decision of who to partner with.

These are some of the most common types of ventures studios:

Industry-Specific vs. Industry Agnostic

Industry-Specific Venture Studios

Industry-specific venture studios, also known as niche venture studios, concentrate solely on a particular sector, such as Healthcare, Fintech, SaaS or EdTech. They choose to only offer their deep industry knowledge, insights, and specialised support to startups looking to operate in their area of expertise.

Industry-Agnostic Venture Studios

Industry-agnostic venture studios take a broader approach, welcoming startups from various sectors and industries. They focus on providing support and resources to startups with innovative ideas, regardless of the industry they operate in. This flexibility allows them to cater to a diverse range of entrepreneurs and business concepts, fostering wide-reaching innovation.

Corporate vs. Independent

Corporate Venture Studios

Established by large corporations, corporate venture studios will typically invest in and incubate new business ideas that align with their corporate goals. These startups often come from ideas generated in corporate hackathon events. While not always successful, corporate studios seek to combine the agility of startups with the resources and reach of well established companies.

Independent Venture Studios

Unlike corporate venture studios, independent venture studios are stand-alone businesses that are not affiliated with a large corporation, and operate independently - often within a credible agency that specialises in a particular field such as technology, or brand. They invest their resources into entrepreneurs and ideas they believe strongly in. These venture studios have an experienced entrepreneurship team and highly-skilled team members with a wealth of experience helping build and scale tech startups.

Hybrid Venture Studios

Hybrid venture studios combine elements of both corporate and independent venture studios. They have a strategic partnership with a large corporation or venture capital firm, allowing them to leverage resources and networks. These studios might evaluate investment opportunities independently, but typically have an investment committee that will make the final decision on partnerships.

Expertise-Led Venture Studios

In addition to the defining characteristics mentioned above, it’s not uncommon for a venture studio to have a specific area of expertise that influence their partnership decisions.

For example brand-led venture studios will support startups they believe they can help succeed by taking a brand-centric focus, embedding their expertise in brand strategy and identity capabilities into the business.

On the other hand, a technology-led venture studio will carefully select innovative new business ideas (such as those that utilise artificial intelligence) that they believe will have an unfair advantage if the business correctly balances it’s focus on innovation and usability; crafting world-class interfaces that encourage value delivery and retention.

The Difference Between Venture Studios and Traditional Startup Growth Methods

Of course, venture studios are not the only option available to founders looking to build and scale a successful technology company. Below we compare venture studios to some of the more traditional startup growth methods; venture capital firms, angel investors, startup accelerators, and incubators.

Venture Studios vs. Venture Capital Firms

Venture Studios offer a blend of investment (through rounds like pre-seed, seed funding, series A and so on), strategic guidance, and operational support, often actively participating in daily management. Unlike Venture Capital Firms, which primarily provide financial backing and mentorship, studios invest expertise and resources, accelerating startup growth in exchange for more equity. This model contrasts with VC firms' focus on financial investment and strategic advice, appealing to founders desiring substantial capital with minimal day-to-day external involvement.

Venture Studios vs. Angel Investors

Angel investors, investing their personal capital, often provide larger sums like venture capital firms but typically adopt a passive approach, allowing startup founders to retain management control. In contrast, venture studios actively assist with guidance and support, offering a distinct advantage for startups seeking hands-on operational help alongside investment.

Venture Studios vs. Startup Accelerators

Venture Studios differ from Startup Accelerators in their engagement depth and investment approach. Venture studios provide in-depth, long-term involvement, often co-creating businesses from the ground up, offering substantial resources, a small to medium sized equity stakes. Whereas Accelerators typically offer short-term programs with mentorship and small capital injections, focusing on rapid growth and networking opportunities, and usually require less equity.

Venture Studios vs. Incubators

Venture Studios differentiate from Incubators by offering extensive operational support and funding, often taking a larger equity stake due to their active role in startup development. Incubators, while providing a nurturing environment with mentorship and resources, usually don't involve direct funding or hands-on management. Similar to startup accelerators, this can be appealing to founders who seek support with greater autonomy.

In choosing between venture studios and traditional methods, founders should consider their specific needs, startup stage, and preference for equity and operational support, recognising each model's unique contributions to the startup ecosystem.

Venture studios can work alongside traditional VC firms and angel investors to complement financial investments with operational support, while accelerators and incubators prepare startups for further development and scaling.

Is a Venture Studio Right For Your Startup?

Having explored the concept of venture studios, you may be wondering if partnering with a venture studio is the right path for you and your new venture.

Here's why this model could be pivotal for your startup:

Early Stage Partnership

Venture studios excel in nurturing ideas from scratch. Their involvement from the ideation phase means you get more than just funding; you receive a partner who's invested in your vision and success from day one.

Hands-On Operational Support

Unlike traditional investors, venture studios offer active, hands-on guidance. They're your strategic partners, involved in daily decision-making and operational execution, providing an invaluable support system for navigating the startup landscape.

Ideation & Validation Support

Venture studios are invaluable for entrepreneurs who have a promising concept but seek expertise in evolving it into a market-ready venture. They provide a blend of resources and hands-on guidance, to rigorously validate ideas against market realities. This helps to ensure that startups they partner with are not just launching a product but addressing real user pain points and market gaps.

Access to Extensive Resources and Networks

Venture studios open doors to a wealth of resources and industry connections. This network is crucial for startups seeking to establish themselves and scale in a competitive tech ecosystem.

Risk Mitigation

With the high stakes of launching a tech startup, venture studios offer a strategic partnership to that mitigates risks. Their collective experience and support framework significantly bolster your chances of success, steering you through the complexities of the startup world.

Market Fit & Product Development

With their expertise, venture studios guide startups through the critical stages of market validation and MVP development. They ensure that your product enters the market with a strong value proposition and fit.

Operational Involvement

For those who prefer an immersive support system, venture studios offer a unique advantage. Their active role in the early and crucial stages of your startup, from developing an MVP to accelerating your path to  They can help you make key decisions faster and significantly expedite your journey to market resonance.

For those who prefer an immersive support system, venture studios offer a unique advantage. Their active role in the early and crucial stages of your startup, from developing an MVP to accelerating your path to product market fit, includes leveraging a proven playbook. This playbook helps you make key decisions faster and significantly expedites your journey to market resonance.

Access to Resources

If you would benefit from shared resources such as office space, marketing expertise, and a collaborative ecosystem of industry experts, a venture studio can offer you tailored infrastructure to help facilitate your growth.

Risk Mitigation & Increased Success Potential

With the high stakes of launching a tech startup, venture studios offer a strategic partnership to that mitigates risks. Their collective experience and support framework significantly reduce the inherent risks of starting a tech company and amplify your chances of success.

It's important to note that joining a venture studio requires a certain level of commitment, flexibility, and openness to collaboration. While venture studios provide powerful support, they also expect founders to actively engage and contribute to growing a successful venture.

Whether as a simple fee-for-service or a combination of both fee-for-service and sweat equity, working with Edition offers your startup a unique opportunity to leverage our expertise, resources, and collaborative ways of working to propel your venture. With a track record of nurturing early-stage and high-growth ventures, and a commitment to driving innovation, Edition provides a dynamic and supportive environment for ambitious founders and technology teams ready to bring their ideas to life. From our studio in Auckland to Sydney and New York, we support global growth and success. If you'd like to discuss a potential partnership, let's talk.

Venture Capital & Funding
SAFE notes are a popular financing instrument used by founders of early-stage startups looking to simplify the process of raising capital.
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Raising seed capital can be a significant hurdle for the founders of a new technology company. The Simple Agreement for Future Equity, or SAFE note, offers a straightforward path to funding, standing as an alternative to traditional financing methods or a convertible note.

This article explores SAFE notes, how they function, their key differences from convertible notes, and why they might be a great option for your tech startup.

What Is a SAFE Note?

The SAFE note was first introduced by Y Combinator in 2013 to simplify the funding process for early-stage startups.

Unlike traditional funding methods, SAFE notes eliminate the need to value the business. This is particularly beneficial for entrepreneurs who may not be able to justify a short-term valuation to investors when the company has not yet found product-market fit.

SAFE notes also remove other complexities, such as interest rates, maturity dates, and loan obligations that come with convertible debt. Investors provide capital or services upfront in exchange for future equity in a startup, typically at a discount. The transfer of equity takes place only if a conversion event occurs in the future, such as a financing round of at least $1m, helping to avoid early equity dilution.

How Do SAFE Notes Work?

SAFE notes are designed to streamline the way early-stage startups engage with investors.

Here's a breakdown of how they work:

Initial Investment

Investors provide startups with capital or services upfront, but instead of receiving immediate shares in the company, they receive a promise of future equity. This is where the "simple" in SAFE note comes into play, as it cuts through the complexities of traditional investment terms.

Trigger Event

The note converts into equity only if a defined trigger event, also known as a conversion event, occurs. This event could be the startup's next priced equity round, an IPO (Initial Public Offering), a liquidation event, or another significant event. The conversion is based on a simple set of predefined conditions that aim to benefit the investor, acknowledging the early investor’s support with favourable terms.

Valuation Cap & Discount Rate

These are the two critical elements that dictate the conversion terms.

Valuation Cap

The valuation cap sets a maximum valuation at which a SAFE converts into equity, ensuring they receive a fair share of the company relative to their early investment, even if its valuation skyrockets.

Usually it will be set at the expected valuation at the time of the next trigger event. For example, if you believe you are likely to raise capital for your Series A round at a $20m valuation in 12 months, $20m might become your valuation cap.

Discount Rate

The discount rate is another mechanism that aims to provide investors with equity at a lower price than that offered to investors in the next round of financing. Again, this serves as a reward for the SAFE note holder’s early investment risk.

The most common discount rate used by startup companies in Australia and New Zealand is 20%. However this varies depending on factors such as founder experience, the industry, and whether the trigger event is expected to happen very soon or if it’s unlikely to happen for a long time.

Transfer of Equity

When a trigger event occurs, the notes convert into preferred stock or common stock depending on what was agreed. The conversion price favours the investor by converting at the more advantageous option between the valuation cap and the discount rate outlined in the SAFE agreement.

Benefits of SAFE Notes

There are several founder-friendly reasons SAFE notes make sense for early-stage startups, particularly those who have yet to establish a pre-money valuation, and their investors.

Benefits for Startups

Flexibility

Capital raising through SAFE notes offers the flexibility to secure capital without setting a pre-money valuation, streamlining the fundraising process.

Speed

SAFE notes enable faster closing of funding rounds. This speed allows startups to secure capital when needed quickly and helps new investors join your cap table efficiently.

Simplicity

With fewer complexities than convertible notes, SAFE notes reduce paperwork and legal fees.

Growth Focus

With no interest or maturity dates, startups can concentrate on scaling their business without the burden of debt repayment.

Solvency

Depending on the terms, SAFE notes are typically treated as equity on the balance sheet, rather than debt, thus removing their impact on the balance sheet solvency test.

Benefits for Investors

Early Access to Investment Opportunities

SAFE notes offer investors a chance to back startups early, by simplifying the process of making an investment.

Potential for High Returns

Given the discounted equity and potential for significant valuation increases, investors can achieve high returns on their initial investment if the startup performs well.

Alignment with Startup

The conversion of SAFE notes into equity links investors' success with the startup's growth. Pro rata rights also allow investors to keep investing in later rounds, fostering a partnership-focused approach.

Discounted Equity

Investors might benefit from a discount rate on future equity, enhancing potential returns as the company's valuation increases.

Disadvantages of SAFE Notes

SAFE notes present unique benefits to both founders and investors. However, they also carry specific limitations that founders and SAFE investors should seek professional legal and financial advice to understand fully.

Disadvantages for Startups

Equity Control

Using SAFE notes might result in unexpected equity dilution, reducing founders' ownership stake in their business.

Investor Misalignment

Differences in company valuation and equity conversion expectations can emerge, leading to potential conflicts between founders and investors.

Future Fundraising Complexity

Managing several different SAFE notes with varied terms can complicate later funding rounds.

Disadvantages for Investors

Ownership Dilution

Conversion of SAFE notes into equity can dilute an investor's stake, especially with subsequent fundraising rounds.

Valuation Cap Challenges

Valuation caps might not accurately reflect the startup's potential value, especially if its valuation significantly increases.

Indefinite Returns

With maturity dates, the timeline for realising returns on SAFE notes is predictable, which can complicate investment strategies.

Equity Dilution

Converting SAFE notes into company equity can dilute the existing capitalisation table, potentially deterring some investors.

SAFE vs. Convertible Notes

SAFE and convertible notes are both popular methods used by early-stage startups looking to raise pre seed or seed capital from investors. While similar, there are some critical differences in their structure and terms.

SAFE Notes

  • Equity-like instruments; no valuation is required.
  • Simple and flexible; ideal for fast cost-effective fundraising.
  • Convert into equity during future financing.
  • No interest or maturity dates, minimising direct financial pressure.

Convertible Notes

  • Convertible notes work as debt instruments that convert to equity later.
  • Convertible securities are generally more complex, with potentially higher legal costs.
  • Have interest rates and maturity dates, increasing structure.
  • Offer more protections to investors, like liquidation preferences.

How to Issue a SAFE Note: Step-by-Step Guide

1. Consult Legal Advisors

Imagine your Fintech startup (structured as an LLC) is looking to raise $100,000 Pre seed funding. Although not always necessary, you should ideally consult a law firm that specialises in startup finances and understands the nuances of your industry. They'll help you kick off the SAFE note issuance process by drafting a document tailored to your situation.

2. Define Key Terms

You and your legal team determine critical terms for the SAFE note. In our example, let’s imagine you opt for a $3 million valuation cap, and a 25% discount rate. It is obviously important to ensure these terms are attractive to investors while protecting your startup's future growth potential.

3. Draft the SAFE Note Agreement

Draft the SAFE note with legal guidance to include your chosen terms alongside the specified conversion or trigger event, such as an equity financing round of at least $1 million. You might also consider including milestones that, when achieved, adjust the valuation cap or discount rate.

For a practical starting point, we suggest utilising the SAFE Note template provided by Kindrik Partners.

4. Present the SAFE Note to your Investor

Offer this SAFE note to your potential investors such as angel investors, venture capital firms, or a venture studio. Naturally this needs to accompany a detailed overview of your business and growth strategy, usually in the form of a pitch deck—VCs and other investors must understand the investment vehicle and the vision they're investing in.

5. Execute the Agreement

Assuming your investor is happy with the terms you have presented, you would solidify this through a formal SAFE Note agreement and distribute the signed document to all parties to keep for their records.

6. Equity Conversion

Now let’s imagine 12 months later your startup raises a $1m Seed round of funding at a pre-money valuation of $5m from new investors. This causes an equity conversion to be triggered, as the capital raise meets the $1m trigger event.

To determine the valuation at which the SAFE note will convert at we take the lower of:

  1. The discounted valuation; the seed round valuation of $5m less the 25% discount, which is $3.75m.
  2. The valuation cap; which was $3m.

In this case the valuation cap of $3m is less than the 25% discount on the pre seed valuation of $5m, so this valuation will be used to determine the conversion value. This means the $100,000 SAFE note will be converted to the relevant number of shares at a $3m pre-money valuation.

The SAFE note would convert first, so the $3m pre-money valuation would become a $3.1m post-money valuation. The SAFE note investor would therefore get 3.23% of the company, this is calculated as $100k/$3.1m.

After the SAFE note has converted, the new seed investment capital would come in causing the SAFE note investor to take part in the equity dilution. The new investors would be investing in a $5m pre-money valuation which would become a $6m post-money valuation. For their $1m investment they would get 16.7% of the company, this calculated as $1m/$6m.

The Future of SAFE Notes in Startup Financing

Adoption

While SAFE notes are very common in Silicon Valley and more mature startup ecosystems they are not yet as common in New Zealand and Australia. We anticipate that SAFE notes will continue to gain traction in Australasia as our startup ecosystem matures. Their appeal lies in their simplicity and the benefits they afford both parties which is crucial for the tech sector which needs to prioritise speed and innovation.

Evolution

SAFE notes will likely continue to evolve. We expect to see new types of SAFE notes that address the changing needs of startups and investors alike, potentially incorporating more standardised terms and offering nuanced investor protections.

Alternatives

SAFE notes will likely inspire the creation of new financial instruments. These alternatives could refine or redefine the terms of engagement between startups and investors, providing more tailored solutions to industry-specific challenges. It will be interesting to see Blockchain technology's impact on startup fundraising.

Continued Relevance

At their core, SAFE notes embody the principles of flexibility, efficiency, and alignment of interests. These qualities are highly valued in the startup ecosystem and are likely to ensure their continued popularity and relevance.

Key Article Takeaways

SAFE notes have become an important funding tool, especially for early-stage companies. They protect startup founders from premature equity dilution and avoid having to value a business on day 0. They also provide an efficient mechanism for investors to invest in high return opportunities without upfront negotiation on valuation.

Read some key takeaways from this article:

  • SAFE notes are legal instruments used in seed-stage financings that give investors the right to convert their investments into equity at a later date.
  • SAFE notes offer advantages for startups, such as flexibility, streamlined processes, and no interest or maturity date. They also offer discounted equity and potential preference during asset distribution for investors.
  • While SAFE notes have risks and limitations, conducting thorough due diligence and seeking professional advice can help mitigate potential drawbacks.
  • SAFE notes differ from traditional convertible notes regarding interest payments, repayment, company valuation, and debt versus equity representation.
  • The future of SAFE notes in startup financing looks promising due to their simplicity, flexibility, and investor-friendly features.

Venture Capital & Funding
Looking to raise capital? Explore NZ’s top Venture Capital firms fuelling technology startups.
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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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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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