Angel investors in New Zealand have too narrow a focus and should broaden their portfolios if they want to see larger returns on their investments, says Angel Association chairman Marcel van den Assum.
“A lot of angel investors looking to hit home runs and that places unreasonable pressure on ventures and boards,” van den Assum says. “We need to start encouraging angels to broaden their portfolios, and as they start to build the portfolio, it improves their chance of ultimately achieving a successful return.”
Van den Assum says Angels might be keeping a narrow focus thanks to the success of the digital sector, which last year saw listings of Wynyard Group, SLI Systems, GeoOP,and the upcoming initial public offerings of Gentrack and Serko.
“We need to be careful we’re not marching ahead of expectations,” he said.
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