But Mr Erskine acknowledged that securing funding to take companies to the next level could be difficult.
The overall private equity space is broken down into angel investors who typically help entrepreneurs grow to the point where they can attract investment from venture capital funds. Larger private equity funds tend to seek companies that are more solidly established.
"There is a challenge for angels to get follow-on venture capital funding here," he said.
Colin McKinnon, executive director of the New Zealand Venture Capital Association, said there was only a handful of venture capital funds in New Zealand, compared with 20 or so private equity firms.
The private equity sector was better funded because institutional investors didn't want to get involved in funding venture capital firms where there was a higher level of risk. "In order to survive and get global scale and distribution, the types of entrepreneurial businesses funded by angels may need to go offshore to get later stage funding."
However, Dr Ray Thomson, chairman of the Angel Investor Association, said that while there was a funding gap between the angel and private equity sectors, that gap could be closed.
"Some of these companies are very poor at keeping their shareholders informed," he said, adding directors of startups needed to be much more engaged in working their networks, raising capital and securing cornerstone investors.
"I have never seen a good idea with good management, that is meeting its milestones and keeping shareholders well-informed, which hasn't been able to raise money."
