While the money had not earned the party a seat, the party had built its membership base to 8000 people and nearly doubled its party vote. Mr Craig said getting over 4 per cent was "actually a great result" for a party which was just three years old.
He was scathing of the electoral rules which allowed United Future to gain a seat with fewer than 5000 votes but left Conservatives empty-handed despite 86,600 votes.
Mr Craig said he was unlikely to make any fundamental changes to the party.
But he might reconsider his publicity strategy, which had included provocative statements on gay marriage and anti-smacking laws.
He said this controversial approach was required to get noticed but he was now more likely to focus on criticism of National's economic record.
The Conservative leader blamed his defeat on a historically high National vote and a disastrous final week of the election campaign.
His party had been "tracking perfectly" but were deprived of attention amid the debate about state surveillance, apart from one negative story about Mr Craig's long-serving press secretary quitting the day before the election. Mr Craig said yesterday the party's members and big donors were not disillusioned and candidates including his deputy Christine Rankin were vowing to stay on.