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New Zealand investors are continuing to back startup ventures, defying a high level of volatility in the investment market.
A startup investment report by PwC New Zealand, Angel Association and NZ Growth Capital Partners indicates there were 67 deals done in the first half of 2023, compared with 66 the year earlier.
Angel Association chair Suze Reynolds said new deals made up 25 percent of the investments, though the overall value was down 4 percent on the year earlier, at nearly $72 million.
"We're happy with it because compared to other startup ecosystems around the world ... we've actually held up incredibly well being flat," she said.
"We're really pleased that people are keeping the faith with this asset class."
Reynolds said most of the investors were interested in deep tech, which tended to be companies that offer technology solutions based on substantial scientific or engineering challenges.
"New Zealanders also have a tendency to be more value-based investors than momentum-based investors. And what we mean by momentum-based is when you're looking at growth just for growth's sake, and that doesn't always imply intrinsic value.
"Deep tech has a tendency to provide those really outsized financial returns that angel and venture investors are looking for."
While companies focused on artificial intelligence were not featured on the NZX register of publicly listed companies, Reynolds said there were a number associated with the angel investment network.
"There have been startups involved in machine learning and artificial intelligence in New Zealand for a number of years. I can see real opportunity for New Zealand startup investors looking to invest in those kinds of things, which really are at the forefront at the moment."