BCC is excited to be launching MIG Fund Two, our second fund which plans to invest in around 20 early stage companies over its lifetime. The start-ups invested in by the fund will be focused locally around the Manawatu region, but will also come from other parts of the country, especially with access to our Sprout (Agritech accelerator) companies which come from all over New Zealand.
Mig Fund One, a million dollar fund launched back in 2011, has invested in 14 companies to date plus the Sprout Cohort (8 companies). Due to the riskier than average nature of a portfolio of this type, some of these companies inevitably failed. However, this has been more than offset by those which have been successful and are continuing to grow, such as BioLumic, Calfsmart, Booktrack, Aroa and CropX to name a few.
A central feature of the Fund is to provide an efficient mechanism for investors to gain exposure to a portfolio of early stage companies. This helps lower the risk of investing in only one or two start-ups and gives investors the chance to get away from business-as-usual and see new technology before anyone else.
Many MIG angel investors invest because they are helping to create a region that has interesting and innovative companies with higher value jobs. Sure, everyone hopes that at some point they invest in the next Trade Me or Xero, but along the way investors are growing the local and national economies.
In fact Angel investment activity has been steadily increasing its contribution to the New Zealand economy with angel networks and funds investing a record $61 million into 94 companies in 2015, up from only $21 million a decade ago according to the Angel Association New Zealand.
If you are interested in investing in start-up companies, now is a great time to get involved in MIG Fund Two. Please get in touch.