New Zealand’s Enterprise Angels launches third fund at $4m target

New Zealand angel network Enterprise Angels has launched its third fund with target of up to NZ$6 million ($4 million).

EA Fund 3, which has the minimum size of NZ$2 million, will have a public launch in March, the early-stage fund manager said, in a statement.

Investors in the vehicle must be wholesale investors, it said. It is not required that investors be members of the firm. However, in the case of over-subscription, priority will be given to its members.

Investors have to commit a minimum capital per investment at $30,000. Further commitments must be made in multiples of 5,000 share units thereafter.

EA Fund 3, which has a 10-year life span, is already open for investment and is slated to close fundraising on 30 June 2019.

It is targeting to invest in around 20 early-stage companies, including previous portfolio of the first two funds. To date, Enterprise Angels has backed 55 companies.

It said that no more than 20 per cent of the committed capital of the new vehicle may be funneled into any one company, including follow-on investment.

Enterprise Angels focuses on startups in the agri-tech, food, horticulture-tech and biotech sectors. It has grown to a network of 200 members who typically invest a minimum of NZ$10,000-25,000 per deal.

Its precedent two funds have a combined size of NZ$5 million and have scored several exits. The first fund’s net IRR is currently at 11.6 per cent.

Meanwhile, the net IRR for EA Fund 2 is 9 per cent.

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