frequently asked Questions
Q: What is angel investing?
A: Angel investing refers to the practice of investing in early-stage companies in exchange for equity or ownership in the company. Angel investors typically provide funding to startups that are too small or too risky for traditional venture capital firms.
Q: How do I become an angel investor in New Zealand?
A: In New Zealand, to become an angel investor, you typically need to have a high net worth or income and be accredited as an eligible or wholesale investor. This means you need to meet certain financial requirements and have the knowledge and experience to make informed investment decisions.
Q: What if I don’t qualify as an eligible or wholesale investor. Can I still be member of MAI?
A: Absolutely! Supporting businesses is so much more than money. Early-stage businesses can benefit from mentoring & coaching, introduction to your network, expert advice and so much more. Our goal is to support businesses within our region.
Q: What types of companies do angel investors typically invest in?
A: Angel investors typically invest in startups and early-stage companies across a wide range of industries, including technology, healthcare, consumer goods, and more. The key is that the company has a high growth potential and a strong business plan.
Q: How much should I invest in a startup?
A: The amount you should invest in a startup depends on a variety of factors, including the company's valuation, your investment goals, and your risk tolerance. It's important to do your research and evaluate the company's financials and growth potential before making an investment. MAI’s minimum cheque size is $5,000 per investor.
Q: What are the risks of angel investing?
A: Angel investing comes with a high degree of risk, as startups are often unproven and have a high failure rate. Investors could lose some or all of their investment if the company fails to grow or goes out of business.
Q: How do I evaluate a startup before investing?
A: Before investing in a startup, it's important to do your due diligence and evaluate the company's financials, growth potential, team, and market opportunity. You should also consider the company's competition and any potential legal or regulatory risks. Mainland Angels will assist you in providing due diligence material on each investment presented through the group.
Q: How long does it take to see a return on my investment?
A: The timeline for seeing a return on your investment can vary widely depending on the company and the industry. Some companies may start generating revenue and profits quickly, while others may take years to grow and become profitable.
Q: How do I sell my shares in a startup?
A: Selling your shares in a startup can be challenging, as the company may not have a public market for its shares. In most cases, investors will need to sell their shares back to the company or to another investor. Alternatively, you may also have an option to sell share during the companies next capital raise.
Q: What is Catalist and what do I do if I have problems?
A: Catalist is the platform that we are using to manage investment deals. You will be able to see what companies have pitched and see ‘Digital Deals’ on this platform. If you have trouble, please contact Camille Hunt.