Investment Sectors 2017
- Written by Snowball Effect
- Published on
In the past couple of years we've seen successful offers from a wide range of industries including financial services, food and beverage, hardware, and software. Recently, as part of our expanded private offering to wholesale investors, we've been talking with investors about the sectors they're most interested in. There are some common themes that we've heard. So far, the sectors that we're seeing the most investor demand for include:
Products related to virtual reality, augmented reality, drones, and mobility continue to be interesting for investors. Successful capital raises in the hardware sector tend to have a unique take on larger macro industry changes in technology such as increases in battery capacity, advances in materials science and miniaturisation of computer control units. Good companies are combining the multitude of recent advances in underlying technology to create whole new product categories. Investors are looking for teams with scientific credibility and working prototypes.
New Zealand has a strong base in agriculture and the primary industries, but we need to maximise the returns we get in this area by adding value to the products before they're sold, and developing technology to leverage primary industry IP. Investors are telling us they want to see companies in the areas of biotechnology, production process innovation and value added products. These investors are looking for companies with excellent sales momentum and teams with deep industry experience.
Some investors like being able to see and taste the products they invest in. We continue to see demand from wholesale investors who are interested in scalable, high-end food products with export potential. Successful capital raises in this sector often combine investment from large strategic investors with a concerted effort to put the offer in front of the company's customers.
Software driven businesses with recurring revenue and easily scalable business models continue to be the darlings of the angel investing and venture capital world. We still see demand for these types of companies, but are frequently told that valuations need to be realistic with companies demonstrating good revenue growth and excellent customer satisfaction.
We've also found that companies from any industry can attract interest from wholesale investors if they have a strong business proposition. Likewise, companies from many industries have had success raising capital from their customers alongside large wholesale investors.
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