In our recent team KPI meeting, we discussed the current state of the deal pipeline and the exciting prospects it holds. Here are the key insights:
High-Quality Deal Flow
Despite the challenging market conditions, the quality of deal flow remains high, with numerous promising companies available for investment. This abundance of quality opportunities is largely due to the current economic climate, which has made capital scarcer. With fewer people investing in early stage opportunities, there are more deals available—often at more attractive valuations—making it an ideal time for those ready to deploy capital.
This trend is echoed in the inaugural Catalist NZ Angel Market Report FY25, which highlights that while total investment volume has softened slightly, the number of deals has remained strong, indicating sustained entrepreneurial activity and investor interest in early-stage ventures. Notably, software and deep tech sectors continue to attract significant attention, with investors showing a preference for companies with strong IP and scalable business models.
Valuation and Negotiation Trends
Headline valuations have seen a drop from the manic COVID-era highs, and companies are now more willing to negotiate terms that are very compelling. This includes higher discount and interest rates on convertible notes, and other protective provisions such as liquidation preferences and anti-dilution clauses. These terms can lead to better outcomes for investors, balancing downside risk with growth potential.
According to the Catalist report, median pre-money valuations have decreased by approximately 15% year-on-year. Additionally, co-investment syndication is on the rise, meaning angels are spreading risk while accessing larger, more ambitious deals.
A Strategic Time to Invest
At Enterprise Angels, we are committed to securing the best deals for our investors. Through collaboration, staying adaptable and negotiating appealing terms, we aim to provide access to exceptional opportunities that can deliver meaningful returns. The current deal pipeline is filled with exciting prospects, and we invite you to join us in exploring these opportunities.
As Warren Buffet once said, “Be fearful when others are greedy and greedy when others are fearful.” In challenging economic times, good deals are abundant, and now is the perfect time to seize these opportunities.
If you’re a wholesale investor and keen to know more about our deal opportunities sign up here and/or come along to one of Pitch night events.
Get in touch!
We welcome engagement from anyone interested or involved in the early stage investment market – Investors, Angel Members, Strategic or Corporate Partners, Founders, Incubators or Accelerators, Deal Referrers, Acquisition Partners etc.