“Looking back at our first fund, our very first investment was $150k into a company. At the time, it was a big deal – it helped them go from a benchtop lab to something slightly larger,” Alvarez says. “Today, our typical investment is between $1.2 million and $1.5 million; $150k just doesn’t move the needle anymore.”
Alvarez notes that while New Zealand start-ups have traditionally been capital-efficient, WNT is now better positioned to provide meaningful backing at an early stage and to double down on the companies that are performing strongly, with follow-on investment. The increased capital also allows WNT to more consistently support capital-intensive phases, such as pilot plants or prototyping, often critical for commercialising scientific IP.
Experience through cycles
WNT’s decade of activity means it has seen the market at both its peaks and troughs. That context is proving valuable in the current economic climate.
“We’ve lived through economic hardship before,” Alvarez says. “What matters now is helping our founders navigate it – encouraging capital discipline and building businesses that can withstand pressure.”
That discipline has earned WNT lasting credibility with its investors.
“We’ve been consistently returning capital for seven years, regardless of the economy,” says Alvarez. “But now more than ever, founders need to understand what’s expected. If you’re raising capital, you need to hit your milestones – otherwise the whole system comes under pressure.”
Strategic focus and trends
WNT remains broadly generalist in its tech investments, though Alvarez says the fund has clear boundaries.
“We avoid drug development, basic diagnostics and now – given the hype – the benchmark for AI [artificial intelligence] investment is much higher,” she says. “That said, we’ve backed companies with core AI capabilities before, in 2019 and 2021, because they were ahead of the curve.”
Alvarez sees waves of innovation shaping New Zealand’s start-up ecosystem. “A few years ago, everyone seemed to be working on sensors. Now the big focus is decarbonisation: things like biomanufacturing, precision fermentation, synthetic biology and manufacturing.”
These sectors are addressing urgent commercial challenges, including supply chain resilience and cost efficiency, while also delivering major emissions-reduction potential.
But Alvarez cautions against chasing buzzwords. “Last year there was hype around climate. Now, ‘climate tech’ is thrown around left, right and centre. But climate as a label will only get you so far. You still need to solve a real problem.”
WNT’s new fund has already made its first investment, into Captivate Technologies, which develops carbon-capture technology.
“The company already has a lot of commercial and pilot agreements in place, which for early stage deep tech is quite rare. So we were really excited about seeing the clarity in the value proposition.”
She says WNT is particularly interested in companies operating in overlooked but essential sectors.
“I like some of the innovation we’re seeing in ‘boring’ areas like instrumentation and manufacturing. These are consistent sectors with real, persistent pain points, which are always sought after, regardless of economic conditions.”
Although not actively investing in AI, Alvarez says the technology has become a critical internal tool for both founders and investors.
“It’s always in the background, helping assess competitors, test positioning, identify market opportunities. When used well, it sharpens thinking across the board.”
Attracting better talent
While capital is critical, Alvarez says talent remains one of the biggest constraints to growth.
“The main problem isn’t building companies, it’s having the talent to support and scale them. Recruiting experienced technical teams and seasoned management is becoming increasingly difficult.”
This is where she sees an opportunity for the Government to step up. “It’s great to see initiatives like the Active Investor Plus visa – that has been outstanding for us in terms of attracting capital and global connections,” Alvarez says.
“Our third fund launched during Covid, so we didn’t raise offshore at the time. But since then we’ve built strong relationships in the US, Germany, and Hong Kong. These markets have proven to be really valuable for us.”
But Alvarez says more could be done to make New Zealand’s innovation ecosystem sustainable.
“We need a more integrated approach, starting from early education and continuing through university and PhD pathways. At the same time, we also need to support entrepreneurs who might not fit the traditional VC model,” she says.
As WNT enters its second decade, Alvarez says the firm’s focus remains unchanged: finding the right team, working on the right problem, at the right time.
“New Zealand has all the ingredients to build globally competitive deep-tech companies,” she says. “With aligned capital, talent, and support, we can go from clever ideas to real, scaleable impact.”
