First close completed for EA Fund 4

We’re excited to announce that Enterprise Angels has completed our first close for EA Fund 4 of $2m, and invested into SquareOne.

Recently launched EA Fund 4 is like our previous three funds in many ways, but the key differentiator is it will not be a ‘side-car fund’, meaning it can invest independently of the angel group, undertaking due diligence and accessing deals from a broader range of sources providing greater diversification for investors and a more streamlined process for startups.  We are aiming to raise $5 million with a maximum of $10 million to invest in up to 35 next generation innovative startups that aim to become iconic NZ companies. The Fund’s focus is angel/seed stage high-growth private companies from a broad sector range.  It will leverage the diverse expertise within Enterprise Angels membership base, the team’s learnings from 15 years of investment in this sector and the ability to cherry pick from the group’s current portfolio.  In addition, it will support the need for quality deals for the numerous Venture Capital funds that have formed in recent years subsequent to the Government’s $300m Fund of Funds programme to invest in high growth NZ companies as they grow to Series A and beyond.

To date the fund has received strong support from those who know Enterprise Angels best, members and existing limited partners. Almost a quarter of the initial investment has come from the EA GP Board and Investment Committee showing their strong belief and commitment in the new fund model. Despite the current economic uncertainty CEO Nina Le Lievre is confident now is good time to be investing in startups.  “We are seeing good value investment opportunities into well performing companies at valuations that could only be dreamed of 12 months ago.”

Bold, innovative founders are renowned for solving difficult problems particularly in challenging economic times.  Startups by nature are agile enabling them to pivot and adapt quickly in changing circumstances.  And with technology adoption increasing at a rapid pace, these factors are hugely beneficial to high growth startups.  It’s no surprise that many great companies have been built during economic downturns (Apple, Microsoft, Uber, FedEX, AirBnB).

Combined, Enterprise Angels previous three side car funds, EA Fund 1, 2 and 3 have invested in almost 60 early stage companies, and realised some notable exits including software companies: Volpara, Merlot Aero, SwipedOn and Moxion.  Other portfolio companies include Fuel50, Foundry Lab, Parrot Analytics, Rockit Global, Spoke, UBCO, Mint Innovation and Fileinvite.  The portfolio has supported over 1200 jobs and combined portfolio revenue for the year ending March 2023 exceeds $180m.

Enterprise Angels knows the strengths of its Angel network (members’ breadth and depth of experience and expertise) combined with the strengths of a fund (coordinating and streamlining the investment decision process) will continue to attract great deals and deliver positive results for investee companies and investors.

Angel investing is high risk; however EA Fund 4 provides an avenue for wholesale investors to greatly mitigate this risk by efficiently (time and money) building a portfolio of early-stage investments with a proven fund manager.

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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.