Angel investors spread bets wider as deal activity jumps 33% in 2025

Angel investment – when people put their own money into young companies – was steady in 2025 while deal activity by increased 33%, the Angel Association of New Zealand says.

The association said last year signalled a focus on backing a wider range of companies, supporting diversification and longer-term outcomes.

“Although new deals attracted 8.6% more capital overall, nearly twice as many investments were made, indicating smaller cheque sizes spread across more businesses,” association CEO Bridget Unsworth said in a report for 2025.

“For founders, this reflects a more selective funding environment; for investors, a deliberate strategy to manage risk, invest earlier, and retain capital for follow-on opportunities,” Unsworth said.

“It also highlights the growing importance of strong syndication and active investor engagement as companies pursue longer paths to scale,” she said.

Active Angel numbers rose by about 39%, from 328 to 455, with Otago recording the strongest percentage growth.

Deep tech investment – typically in cutting edge science-based solutions – was a standout in 2025, increasing from $4.4 million to $6.6m and representing a 21.6% lift over the five-year average.

“In a global environment shaped by climate solutions, national capability and advanced technologies, this trend positions New Zealand well, provided capital and specialist expertise remain aligned,” she said.

Quarterly data reinforced a cautiously optimistic outlook.

Investment rose 32.6% in the December quarter from the previous quarter, with more than double the capital in Q4 flowing to businesses with female founders.

The $3.8m returned during the period also demonstrated that liquidity events continued to occur, supporting confidence and capital recycling.

Key facts

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.