Bill PayneBNZ University of Auckland Business School

2010 Entrepreneur in Residence

Sharing Angel Experiences in New Zealand

Bill PayneEntrepreneur, Angel Investor, Educator

• Engineer/manager for Fortune 1000 – 10 years• Built and sold a materials science company to E. I. DuPont • Invested in >50 startup companies in 30 years• Entrepreneur-in-Residence for Kauffman Foundation for 12 years• Delivered over 100 workshops on angel investing in 35 states and 7 countries

Agenda2010 Visit to New Zealand

• Introduction• Sponsors• Activities• Outcomes• Cost• Summary

Introduction

“I APPLAUD THIS TYPE OF INITIATIVE. IT CREATES BRIDGES OF KNOWLEDGE AND TRUST – TWO CRITICAL CRITERIA FOR SUCCESSFUL ANGEL INVESTING BOTH FOR THE INVESTORS AND THE ENTREPRENEURS.

I RECOMMEND WE USE THIS EXPERIENCE AS A GUIDE TO REPEAT IT AROUND THE WORLD.”

Brigitte BaumannPresident EBAN

United Kingdom New Zealand

Land Area 242,900 km2 270,464 km2Coastline 12,429 km 15,134 kmPopulation 62 million 4.4 millionLength 700 km 1400 kmProximity to equator

London5700 km

Auckland4100 km

Building Relationships

• Met key players in 2004 in Sydney• Strengthened relationships at

international angel meetings• Was invited to NZ to deliver

seminars in 2006 and 2008• Was invited to return to NZ in 2010 with

my wife for five months of work and play• Returned to NZ in 2011 for five weeks

www.billpayne.com

Objectives• Assess the Kiwi entrepreneurial landscape• Broaden awareness of angel investing and the

importance of entrepreneurship in NZ • Provide investor-readiness education• Deliver investor education to new angels• Mentor Kiwi angel groups on best practices– deal flow management – group operations

Overview

• 28February through 2July 2010• Visited 12 towns and cities in 5 months• Mentored startup entrepreneurs• Delivered public lectures• Interviewed by the press• Lead best practice meetings of angels• Delivered angel/entrepreneur seminars

www.billpayne.com

SponsorsA Public-Private Partnership

Lead Sponsors

www.billpayne.com

Andy Hamilton – CEO, ICEHOUSEPrincipal Organizer

Bank of New ZealandAndrew Thorburn, CEOPrincipal Sponsor

Public Sector SponsorsUniversity of AucklandMajor university of NZ

NZ Venture Investment FundGovt. Co-investment Modeled after LINC

Public R&D Funding AgencySupported two interns

Link Kiwi companies to International investors

Private Sector Sponsors

Very supportive of entrepreneurial support system in New Zealand

Private sector airlineSignificantly reduced fares

New rental car companyGraduate of ICEHOUSE incubator

Activities

www.billpayne.com

0102030405060708090

Activities in New Zealand

TV Radio Web Print0

2

4

6

8

10

12

14

16

18

20

Kiwi Media Coverage

New Zealand Landscape• 9 business incubators– 6 with affiliated angel groups

• 17 angel groups– 7 angel funds– 10 angel networks

• New Zealand Venture Investment Funds– Invest in NZ venture capital funds– Co-invest with angel groups

Angel Deals

0

20

40

60

80

100

120

2006 2007 2008 2009 2010

Investment inNZ$ Millions

Deals

Outcomes

Franceska Banga, CEONew Zealand Venture Investment Fund

“The New Zealand entrepreneurial ecosystem, including Universities, Incubators, Seed Funds, Angel Networks and the entrepreneurs are five years ahead of where they would have been after Bill’s visit.” July 2010

Andy Hamilton, ChairmanAngel Association of New Zealand and the ICE Angels

“We don’t yet have such great angels in NZ, so we asked Bill and Ann come and live with us for a while. The rest is history; His openness, friendliness and willingness to contribute, Bill has taken our industry forward, a long way forward.” July 2010

Phil McCaw, Incoming ChairmanAngel Association of New Zealand

Presenting Bill with the 2010 NZ ArchAngel Award

"Bill has been helping the development of the NZ Angel scene extensively. During his five month stay he had a dramatic impact on raising the profile of angel investment, assisting angels groups and providing one- on-one mentoring to a huge number of NZ entrepreneurs.“ November 2010

Costs

Costs(90 working days)

• Business travel to New Zealand• Business and travel expenses within NZ• Living expenses for five months• Modest one-time honorarium to cover

ongoing costs in the US• No consulting or speaking fees

Summary

• Valuable outcomes for New Zealand• Extraordinary experience for us• Would go again in a heartbeat (returned for five weeks in 2011)