12345
Idealog.co.nz | The Transformation Issue
007
the uplist
Dr. Sean Simpson at Lanzatech, Tom Harding at Mish Guru, Brough Johnson and Teresa Bass at Narrative Muse,
Ian Taylor at Animation Research and Anna Kominik at Zephyr Airworks are all examples of businesses operating
with empathy, Reynolds says. “All are growing businesses that are imbued with New Zealand values and at their core
embody care for each other and the planet. But to be honest, I could name literally dozens and dozens
of others and I wish I could. It’s the reason angel investment in New Zealand rocks.” ■b;;-lrѴ;vo=;,;-Ѵ-m71olr-mb;v|-|7o;lr-|;ѴѴ
)_-|m;;7v|o1_-m];
b|_v|-u|Ŋrvv;;hbm]
bm;v|l;m|bm;,;-Ѵ-m)_;u;bm;v|ouvrѴ-1;
blrou|-m1;ķ0;om7fv|
v;;bm]-Cm-m1b-Ѵu;|umo|o;mvu;b|Ľv-]oo7
l-|1_0;|;;m-=om7;u
-m7-mbm;v|ou)_-||_;u;1;m|7;-Ѵv
v_;Ľvv;;m_-rr;m-ѴѴ
_-;bm1ollomReynolds says first things first, New Zealanders need to
believe that they can create globally impactful businesses.
“More ambition to address massive markets would
not go amiss. And we would do better if we had clearer
definitions of what success looks like at the very outset.
If you want to create a billion dollar company, get clear
on who is going to help you do this, the steps to get there
and how much money you’ll need to do it,” Reynolds says.
“Exiting your venture for $20 million or $100 million
in four to 10 years is also a worthy ambition.
Generating this sort of value is a totally credible
path to creating a billion-dollar company as you,
and we as an ecosystem, gather experience
and intel on how to scale and create
world-changing businesses.”Reynolds says angels have always been
motivated by factors other than just the
financial returns as on a deal-by-deal basis,
early-stage investors are more likely to
lose their money than not. As well as this,
90 percent of their returns come from just
10 percent of the investments they make.
Given this, financial returns are important
for the venture to be sustainable, but
they’re also not the only driver.
“Beyond financial returns, angel investors
are also highly motivated by paying
forward the experience and support they
have had in their careers, they want to be
part of creating wealth in the broadest
sense of the word for New Zealanders,
many get a buzz from being part of
the future and others are motivated by
being part of a community of similarly
ambitious, creative and optimistic people,”
Reynolds says. “Good investors are
acutely aware that looking after the planet
and people is simply part of creating a
sustainable, profitable, exponentially
impactful business.”Fundamentally, Reynolds say this
is all about being really clear about
what it is you want to buy with the
investment you are seeking and
who can best help you get it.
“Look for an investor who can
help you crack a market channel,
develop your product faster, has
experience scaling companies, can
help with the next capital raise
and who will inspire and support
you,” she says. “Be sure you and
your investor not only share what
success looks like and how you
plan to get there, but that you
also mutually understand what
motivates both of you.”
She advises not rushing due
diligence, and spending time
together both socially and
professionally to get to know one
another. It should take at least six
weeks to cover off everything, and
with bigger deals, this can take
up to three months.Reynolds says ambition, self-awareness,
a deep understanding of the market
and empathy for customers, a clear
sense of what success looks like and the
milestones and timeline to get there
are what recent deals have in common.
She says New Zealand companies also
tend to lead on the world stage when
it comes to empathy, as sincerity and
humility are in our nature, and often,
our most successful businesses help
create a better world. “I do think we
are leaders in this space,” Reynold says.
“The world is beginning to know about
it and we are beginning to capitalise on
it. It feels like we are at the bottom of a
wave which we should be preparing to
ride, because it’s rising quickly. To surf
it successfully does not need any special
skills beyond boldness and confidence
that we own it. Empathy for each other
and the planet has always been at our
core, but it’s needed now more than ever
in the world – markets and customers
are calling for it more than ever.”Good investors are acutely aware
that looking after the planet
and people is simply part of
creating a sustainable, profitable,
exponentially impactful business.