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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startups, information on New Zealand's venture capital and angel investment landscape remains elusive, scattered, and outdated—with crucial insights hidden behind paywalls.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.

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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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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.

Building a startup in New Zealand requires more than just resilience and a great idea. It also requires capital. Whether you're at the early stages of your business investing in R&D or facing the challenges of a competitive industry, having financial support can make all the difference.

Recognising this, the New Zealand government actively invests resources in supporting small businesses in our beautiful country. To help you navigate the different funding options, we've compiled a comprehensive list of the top startup grants for tech startups in New Zealand.

What is a Startup Grant?

A startup grant is a sum of money awarded to businesses that meet the eligibility criteria to support their business 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 how the funds will be spent and demonstrate the grant's impact on their business.

Self-Employment Startup Payment

The Self-Employment Startup Payment is a form of financial aid to help individuals start a new business. It aims to provide financial support for the essential startup costs that may pose a hurdle to new entrepreneurs.

Criteria

To be eligible for Self-Employment Startup Payment, applicants must:

• Be initiating a new business venture
• Require financial assistance for critical startup expenses

What you get

Up to $10,000, supporting critical startup costs.

This grant can be applied towards:

• Initial lease and bond payments for your business premises
• Material costs for prototypes and setting up a website
• Legal fees associated with formalising your business structure

Learn more about the Self-Employment Startup Payment Grant

Flexi-Wage for Self-Employment

The Flexi-Wage for Self-Employment is a government initiative designed to assist individuals in creating their own business. It provides a financial cushion for early-stage startup business development, when the company may still need to be self-sufficient.

Criteria

To be eligible for Flexi-Wage for Self-Employment, applicants must:

• Be in the process of starting a new business or in the early stages of business development
• Present a viable business plan that demonstrates the potential for sustainability and growth

What you get

Up to $16,800 ($600 a week for a maximum of 28 weeks) for early stages of business development.

This grant can be applied towards:

• Essential setup costs for the business
• Living expenses during the initial phase where business income might not be stable

Learn more about the Flexi-Wage for Self-Employment Grant

Business Training & Advice Grant

The Business Training & Advice Grant provides access to specialised expertise, enabling new business owners to lay a solid foundation for their ventures through informed decision-making and strategic planning.

Criteria

To be eligible for the Business Training and Advice Grant, applicants must:

• Be in the planning stages of starting a new business
• Be receiving assistance from Work and Income New Zealand (WINZ) to launch the business
• Intend to utilise the Flexi-wage for self-employment for the same business

What you get

Up to $1,000 every 52 weeks, financing professional services for new business owners.

This grant can be applied towards:

• Business skills training
• Crafting a comprehensive business plan
• Seeking advice on starting and running the business effectively

Learn more about the Business Training & Advice Grant

Regional Business Partner Capability Vouchers

Regional Business Partner (RBP) Capability Vouchers support small businesses in New Zealand by subsidising training and advice on business planning, marketing, and systems through the Regional Business Partner Network to foster growth and efficiency.

Criteria

To be eligible for Capability Vouchers, applicants must:

• Undergo an assessment with a local Regional Business Partner
• Be operating with at most 50 full-time equivalent employees
• Be registered for GST in New Zealand
• Have a New Zealand Business Number (NZBN)
• Be operating in a commercial environment
• Demonstrate a desire to innovate and grow

What you get

Up to $5,000 per year, for training and advice for business owners and their teams on essential management topics.

This grant can be applied towards management training in key areas such as:

• Business Planning, Systems, and Sustainability
• Capital Raising, Export, and Finance
• Governance, Lean Manufacturing/Business Operations, and Marketing

Learn more about RBP Capability Vouchers

Callaghan Innovation R&D Grants

Callaghan Innovation offers various R&D grants to support significant technological development and business innovation. This includes the Ārohia Trailblazer Grant, New to R&D Grant, R&D Experience Grant, R&D Career Grant, and the R&D Tax Incentive—each designed to fund different stages and scales of R&D activities, from initial development of intellectual property to commercialisation.

Ārohia Trailblazer Grant

The Ārohia Trailblazer Grant from Callaghan Innovation is designed to support innovative New Zealand businesses preparing to launch their products or services to the market. Here's a structured overview following your example:

Criteria

To be eligible for the Ārohia Trailblazer Grant, applicants must:

• Be an innovative business at the "getting ready to go to market" stage
• Have completed the majority of their research and development
• Demonstrate the potential to create opportunities for other innovators in Aotearoa
• Exhibit four explicit attributes, emphasising community and industry impact (stated on the website)

What you get

Up to $4 million in co-funding for selected businesses, supporting innovative New Zealand businesses as they prepare to launch groundbreaking products or services to the market.

This grant can be applied towards:

• Setting up new infrastructure and production capabilities
• Building teams with the right skills
• Developing demonstration models
• Marketing efforts

Learn more about the Callaghan Innovation Ārohia Trailblazer Grant

New to R&D Grant

Similar to the now-retired Callaghan Innovation Getting Started Grant, their New to R&D Grant provides financial support to kickstart the research and development phase for startups and established businesses, facilitating the progression of product development or services from concept to commercial readiness.

Criteria

To be eligible for the New to R&D Grant, applicants must:

• Be an eligible entity as a business
• Your business must not have received any government funding for R&D greater than $5,000 in the three years before the date of submission of your application
• Your business must have spent less than $50,000 in total on R&D over the three years before the date of submission of your application
• You must be able to fund your share of the R&D costs

What you get

Up to $400,000, funding 40% of your eligible R&D activities.

This grant can be applied towards:

• Initial research and development costs
• Capability development activities

Learn more about the Callaghan Innovation New to R&D Grant

R&D Experience Grant

The R&D Experience Grant from Callaghan Innovation is designed as a student grant to facilitate existing businesses in integrating tertiary-level students into their research and development (R&D) projects through full-time summer internships. This approach aims to equip students with valuable, real-world R&D experience, nurturing future innovators.

Criteria

To be eligible for the R&D Experience Grant, applicants must:

• Have an ongoing R&D program with a dedicated budget and technical staff
• Fulfil financial due diligence criteria
• Employ interns on their payroll, ensuring they receive at least a Living Wage during the internship
• Be a business incorporated under the New Zealand Companies Act, registered under the Limited Partnerships Act, a Māori incorporation or trust, or meet other specific criteria
• Apply for a maximum of 10 students, adhering to the stipulated student-to-R&D personnel ratio

What You Get

Financial support by covering student wages at the Living Wage rate.

This grant can be applied towards:

• Compensation for students participating in R&D projects
• Providing valuable, real-world R&D experience to students

Learn more about the Callaghan Innovation R&D Experience Grant

R&D Career Grant

The R&D Career Grant from Callaghan Innovation is designed as a student grant to financially support innovative businesses employing PhD and Masters graduates full-time for six months. The goal is to provide these graduates with their first professional experience in research and development (R&D), thereby enhancing both their career prospects and the R&D capabilities of the hiring businesses.

Criteria

To be eligible for the R&D Career Grant, applicants must:

• Conduct active R&D supported by a specific R&D budget and technical team
• Meet financial due diligence requirements
• Offer a full-time employment position to the graduate, not a contract role
• Be an entity incorporated under the New Zealand Companies Act, registered under the Limited Partnerships Act, a Māori incorporation or trust, or meet other defined criteria

What You Get

Coverage of a graduate's salary for six months.

This grant can be applied towards:

• Full-time employment of PhD and Masters graduates in R&D roles
• Integration of fresh academic insights and cutting-edge knowledge into business R&D efforts

Learn more about the Callaghan Innovation R&D Career Grant

R&D Tax Incentive

The R&D Tax Incentive (RDTI) from Callaghan Innovation is a financial measure designed to support New Zealand businesses engaging in research and development (R&D) activities. It aims to alleviate financial burdens and recognise the innovative efforts contributing to a better future.

Criteria

To be eligible for the RDTI, applicants must:

• Conduct R&D activities within New Zealand
• Complete the Business Eligibility and R&D Eligibility quizzes on the RDTI website to confirm their eligibility
• Engage in qualifying R&D activities meeting the specified tax credit claims criteria

What You Get

A 15% tax credit on eligible R&D expenditures.

This incentive can be applied towards:

• Direct R&D activities conducted in New Zealand
• Costs associated with developing new or improved products, processes, or services

Learn more about the Callaghan Innovation R&D Tax Incentive

Deep Tech Incubators

Deep Tech Incubators offer robust support and investment from Callaghan Innovation to propel Deep Tech ventures, fostering scientific and technological breakthroughs with the potential for profound societal impact.

Criteria

To be eligible for the Deep Tech Incubator, applicants must:

• Present a novel, defensible Deep Tech proposal with significant scientific or engineering advancements
• Demonstrate a credible project plan, commercialisation strategy, and budget with adequate resources allocated by the partner Incubator
• Align with the chosen Incubator's strategy and specialty area, or provide a valid rationale for any deviation
• Be early-stage with a long path to commercialisation, high-growth with global ambitions, and have strong science or engineering foundations with some technical validation
• Be incorporated in New Zealand and offer benefits to the country

What You Get

A minimum of $1 million in funding, with $750,000 as a repayable grant from Callaghan Innovation and a minimum of $250,000 from the partner incubator.

This funding can be applied towards:

• Development and commercialisation of novel, defensible Deep Tech proposals
• Building teams, infrastructure, and achieving technical validation

Learn more about the Callaghan Innovation Deep Tech Incubators Grant

Waka Kotahi Innovation Fund: Hoe ki angitū – Innovation Fund

Criteria

To be eligible for a grant from Hoe ki angitū – Innovation Fund, applicants must:

• Address specific challenges related to New Zealand's land transport, such as climate change, road safety, and emissions reduction.
• Innovate within the private sector, including startups, iwi, and research institutions.
• Propose solutions applicable in New Zealand, enhancing social and economic outcomes.

What you get

Financial support ranging from $30,000 to $500,000 for up to 16 weeks to accelerate innovative transport solutions, with potential phasing over twelve months.

This grant can be applied towards:

• Development of innovative responses to published transport challenges.
• Access to data, expertise, regulatory guidance, and real-world testing environments.

Learn more about the Hoe ki angitū – Innovation Fund

Te Pūnaha Hihiko: Vision Mātauranga Capability Fund

Criteria

To be eligible for a grant from Te Pūnaha Hihiko: Vision Mātauranga Capability Fund, applicants must:

• Build connections between Māori organisations and the science and innovation sectors.
• Develop projects that align with the Vision Mātauranga policy, integrating Māori knowledge and perspectives.
• Aim to increase the understanding and application of research outcomes beneficial to Māori communities.

What you get

An annual budget of approximately $4 million, with about $2 million available for new proposals, supporting collaborative projects and research capabilities through various funding schemes.

This grant can be applied towards:

• Projects that foster new connections between Māori organisations and researchers.
• Research and initiatives that contribute to the strategic outcomes of the Vision Mātauranga policy.
• Activities that build research capabilities relevant to Māori knowledge and aspirations.

Learn more about Te Pūnaha Hihiko: Vision Mātauranga Capability Fund

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.

Other Government Support for Startups

New Zealand's government agencies support startups beyond growth grants, focusing on training, business advisor services, and sustainability tools to foster growth and innovation.

These programs collectively aim to enhance New Zealand 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.

Digital Boost Skills Training

Run by the Ministry of Business, Innovation and Employment (MBIE), this initiative provides free training on digital tools, website management, and social media optimisation to enhance business digital presence.

Learn more about Digital Boost

Invest New Zealand

New Zealand Trade and Enterprise (NZTE) aids businesses targeting international markets with personalised advice and global networking, supporting export ambitions.

Learn more about Invest New Zealand

Climate Action Toolbox

A free tool aiding businesses in reducing their carbon footprint, helping them understand and act on environmental impact, and aligning with New Zealand's sustainability goals.

Learn more about Climate Action Toolbox

Business Mentors NZ

Business Mentors New Zealand is an independent not-for-profit mentoring service committed to supporting the success of small business owners, start-up entrepreneurs and social enterprise decision-makers.

Learn more about Business Mentors New Zealand

General NZ Business Advice

Tools and expert advice from government and industry for both large and small business owners such as; checking business name availability, finding out about claiming expenses and registering a trade mark.

Learn more at business.govt.nz

Additional Funding Options

While New Zealand's government grants offer a solid foundation for funding 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 New Zealand and 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 New Zealand's and 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 Taxi offer small business loans tailored to startups' unique needs, enabling them to grow without giving up equity.

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At Edition, we specialise in bringing visionary ideas to life. Whether you're navigating technology startup grants and small business grants or seeking venture capital, our strategic design and development expertise is tailored for companies eager to make a difference—partner with us to transform your innovative ideas into digital solutions that contribute to a better future.

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