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Home / Business / Personal Finance

Smart money for smart ideas

Helen Twose
By Helen Twose
Columnist·NZ Herald·
19 Jul, 2009 04:00 PM2 mins to read

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With an estimated $100 million in new capital needed by start-up businesses every year, Ken Erskine matches potential investors and compatible companies.

As director of the Icehouse business incubator's start-up division and investor arm the Ice Angels, Erskine "grooms" new businesses to meet possible investors.

The amount of money invested
by angel investors has grown steadily over the past three years - averaging around $21.8 million - but the industry reckons it needs five times that.

Matching "smart ideas with smart money", Erskine is responsible for vetting prospective companies and ensuring they are ready to seek investment funding.

An Ice Angel since 2003, Erskine has personally invested in three companies. "In some ways, [I'm] helping make dreams and in some ways helping break dreams," he said.

"Some people have ideas that they think are tremendous, and when you look at it through a commercial pair of spectacles or practical pair of spectacles they may be not as glorious as those people would have initially hoped."

Next week the Icehouse is throwing open its doors to people interested in becoming involved in start-ups - either as a business creator or investor.

"It's highly valuable for people who have got ideas or thinking about starting up their own business to get in a couple of hours a really good snapshot and feel for the things that we can do," said Erskine.

"And if we're not relevant for them, getting an idea of things they need to be thinking about."

Those up to the challenge can enter the Dragons' Den-style competition, preparing a 60-second pitch for their business idea.

www.theicehouse.co.nz

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