We’ve been crunching the numbers on our capital raising activity this year.
So far, we’ve completed 50 transactions with another 25 in train, the majority of which will be done and dusted by Christmas.
The total amount of capital being raised in these 75 transactions is just over $220m, with a cumulative pre-money valuation well north of $700m (this number counts only the priced rounds, and leaves out convertible note raises).
NZ companies account for $150m of this capital raising with a pre-money value of over $450m, Southeast Asian companies another $70m with a pre-money value of more than $250m.
The average and median raise size and pre-money values are interesting, particularly when comparing NZ and Southeast Asia.
|Region||Average raise||Median raise||Average pre-money||Median pre-money|
Overall, we’ve found raises in SE Asia to be a bit bigger at a higher pre-money valuation, but the difference is not logarithmic. The NZ average was boosted by a few large financing deals, including two IPOs. The NZ median raise number is perhaps more indicative of the current state of the capital raising market in which the majority of deals are seed investments (albeit often closed on series A terms).
The biggest difference we have found in SE Asia is the depth of money available for subsequent rounds – once founders have raised an initial seed round from professional investors they can move on to plan Series A and later rounds with some confidence because there are many VC’s and family offices active in the market. There is nothing like this level of Series A and later round financing available in NZ, and this is one of the main holes in our ecosystem.
Having said that, it is not all doom and gloom for Kiwi tech companies seeking Series A funding. GD1’s new fund and Movac’s recently closed fund 4 are both targeting this segment, and hopefully more players will emerge in 2017.
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