Start-up company investment surged to $754m in 2025 after deal activity jumped

Momentum returned to the New Zealand start-up scene in 2025, with deal volume picking up by 14% over the previous year, the Angel Association of NZ says.

A total of 166 funded deals were recorded, with $754 million invested, representing a 61% increase in total investment, year-on-year.

A total of 47 new companies were invested in during 2025, compared to 46 in 2024 and 51 in 2023.

The association said the second half recorded higher deal volume (up 21%) and total investment amount (up 8%) compared with the first half.

Early-stage activity continued to grow, with proof-of-concept deals - which involve potential customer tests to verify feasibility – increased to 19% of total deal volume.

But the association said investment was increasingly concentrated in later-stage companies, with early expansion and expansion stages accounting for 49% of funding rounds amounting to 83% of total capital invested in 2025.

Investment activity remained heavily concentrated in the Auckland, Wellington, and Canterbury regions, however the distribution between the main centres shifted with both Wellington and Canterbury regions experiencing particularly strong growth in total investment in the second half.

Fin-tech and health-tech sectors recorded strong investment growth in the second half, while capital invested in climate-tech and clean-tech declined, reflecting broader global funding trends.

Angel Association of NZ chief executive Bridget Unsworth said the data painted a picture of a maturing ecosystem – one that was increasingly capable of supporting companies beyond their early stages.

“The headline growth is encouraging,” she said.

“With total investment reaching $754m in 2025, we are seeing not just more capital flowing into the market, but a meaningful shift in the scale of that capital,” she said.

“Larger rounds are becoming more common, and that matters.

“It signals that New Zealand companies are progressing further, staying competitive on a global stage, and attracting the depth of funding required to scale.

“This is, unequivocally, a positive development.”

Larger rounds brought a range of benefits to the ecosystem, Unsworth said.

They enabled founders to focus on growth rather than constant fundraising, attract and retain top talent, and support expansion into international markets.

“They also validate the quality of New Zealand’s start-up pipeline – demonstrating that the early-stage work done by early-stage investors is translating into companies that can successfully raise significant follow-on capital."

Jacques Richter, investment director at New Zealand Growth Capital Partners (NZGCP) – an investment company – said the data pointed to clear momentum returning to New Zealand’s investment market.

“These are encouraging signals for an ecosystem that has spent the past decade building the foundations required to support globally ambitious firms,” Richter said.

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