In tougher economic times, early capital is often the first thing to dry up – precisely when innovators most need it. Nina Le Lievre, CEO of Tauranga’s Enterprise Angels, tells us why angel investors are essential in a high-performing innovative region.

Angel investing fills the gap in a pivotal funding stage between support from friends and family, and institutional venture capital. It’s high risk and exciting and it’s exactly where many of Aotearoa’s most promising young companies live – pre-revenue or just post-MVP (minimal viable product), rich in potential but light on track record.

Angel investors are uniquely positioned to fund that stage. They bring risk capital and the experience and connections to leverage that capital well. In New Zealand, angel rounds are typically $250k–$1m, comprising individual cheques of roughly $5k–$50k and syndicated with different angel networks.

Angel investment fills the void where traditional funding falls short – fueling innovation and helping to transform potential into commercial progress. Banks prefer collateral. VC funds need traction. Early on, what most founders need is belief, backed by capital that understands the journey from prototype to product market fit. International research echoes this: business angels measurably bridge early-stage financing gaps and improve survival odds – especially when they invest as organised groups.

Beyond the cheque: the value that doesn’t show on a cap table

Capital gets things started but angel engagement is the icing on top. The best angel investors contribute far more than money:

• Strategic and operational guidance – sometimes informal mentoring, sometimes formal board positions.
• Introductions to customers, partners, investors and specialist advisors.
• Opening networks to attract talent.
• Brand and go-to market support – many angels have been business operators and have learned experience they can share with their portfolio companies.

These contributions target the core risk in early-stage ventures: execution. A single well-timed customer introduction can compress a sales cycle by months; a pragmatic board conversation can extend runway without raising a cent; a light touch investor rep can keep governance clean and founder friendly while preparing for later VC rounds. Across a portfolio, those micro interventions compound into macro‑level outcomes.

The economic flywheel angels power

Angel investing’s impact is tangible and local. At the angel investment stage, companies average around five employees; by year three, employment, assets and revenue more than triple on average. That growth isn’t just founder and shareholder upside – it’s skilled local jobs, supplier revenue, and capability that tends to stay in region. We have some great local examples in the Bay of Plenty: SwipedOn, Lawvu and SYOS Aerospace.

Angel investors help turn early momentum into something investible. Deals are screened by experienced investors (who back up their views with money and time); sector experts contribute to due diligence; terms are negotiated with appropriate protections; and an investor director or representative supports the company post investment. This is the groundwork that raises the bar and helps create clean cap tables and reporting discipline – the basics that later stage funds expect.

For founders, that means more than money. It’s a process which can help identify gaps or weaknesses. From the moment they submit a business opportunity summary to the angel group, founders are taken through the paces: initial questions at screening, Q&A at pitch nights from a range of investors, a deep dive in due diligence, then if successful at securing capital, settlement via a nominee (for a tidy cap table) and ongoing support from the Enterprise Angels team, an investor rep and the cohort of members that invest.

Why this matters now

In a tighter macro environment, the first capital to dry up is often early capital – precisely when innovators most need it.

Angel investing helps diversify our economy beyond property and commodities into advanced technologies; ag‑tech, health-tech, climate solutions and more. Think productive tools and businesses.

For prospective angels, there’s a pragmatic, learn-by-doing pathway. You don’t have to lead rounds or chair boards on day one. Start with a clear allocation (often 5–10% of investable wealth), build gradually to 15+ investments to achieve diversification, and use funds or syndicates to broaden exposure – all while contributing your domain strengths to due diligence and post-investment support. That portfolio discipline helps avoid the “one and done” trap I’ve seen so many times. It also increases the odds of participating in meaningful exits over time.

What ‘good’ looks like

Healthy angel ecosystems blend three ingredients: quality deal flow, engaged investors and post-investment support. Enterprise Angels focuses on precisely that – curating opportunities, streamlining documents and due diligence, and connecting founders with investors who bring relevant expertise.

For investors, membership unlocks access to deals, a community of like-minded peers, and practical ways to contribute beyond capital. For founders, it’s a structured runway from startup to scale.

Bottom line

Angel investors are the essential link of a modern, high-performing innovation economy. They fill a financing void others can’t (or won’t – did I mention it’s risky?!), and they do so while contributing capability and connections. Where angels are active, you see more startups, more scale, and more skilled jobs – and, over time, more founders and angels paying it forward. The evidence, here and abroad, points the same way: when angels lean in, economies benefit.

---

Come to the Enterprise Angels Pitch Night on Tuesday, 3 March: The best way to understand angel investing is to be in the room. Join the next Pitch Night (either in person or online) – meet founders, hear the questions experienced angels ask, and see how capital plus capability accelerates growth. Reserve your spot.

About Enterprise Angels: Enterprise Angels, based in Tauranga, is one of New Zealand’s leading angel investment networks. The company seeks innovative businesses with global potential and driven founders. Investments are made primarily in early-stage New Zealand companies, with a focus on Software-as-a-Service (SaaS), and deep tech ventures. Investing across seed, startup, and early expansion stages, and providing capital, expertise and connections. Currently there are over 75 companies in the Enterprise Angels portfolio – check them out here.