2010 has got off to a great start!  The quality that we’re seeing in the opportunities being put in front of us is the best it’s ever been.  So good on you, Kiwi Entrepreneurs and their backers.  Typically what we’re seeing at the moment are:

  • Businesses that are up and running.  Initial product development is done, market entry is mapped out and the core team is in place.
  • Experienced business people.  Increasingly we’re seeing more experienced teams with better balance.  Better balance = people with worldly business experience working in-partnership with great product innovators.  Patience is running out in the investor community for great product people not partnered with real world business experience.
  • More realistic valuations.  I’m obviously biased here but valuations started to run away in 2008/9.  The valuations now being presented are more realistic for the stage of development of companies.  This is particularly so for companies that have been through a few rounds of investment; those that haven’t still have some interesting perspectives on valuation. The most important thing in establishing value is proof.  The more you have the stronger your position.

If you’re looking to raise capital this obviously means that the bar is being raised higher and you will need to make sure you beat the other competition in the market for money.  This means, a business (not idea) with some proof behind and a team with a track record of execution.
Raising capital is still tough but deals are getting done.  That will be the subject of my next post.
Take care.