Launching a startup in regional New Zealand comes with unique challenges, but this also means that it offers unique opportunities. Although most startup ecosystems are based in major cities, regional areas have their own resources. This article will explore seven startup funding opportunities in regional New Zealand.
1. Regional-Specific Development Initiatives
Most regional areas in New Zealand have their own economic development agencies or councils that focus on fostering local business growth. Such entities often offer:
- funding programs;
- grants; or
- mentorship opportunities.
These programs are designed to stimulate economic activity and create jobs in regional areas.
2. Government Grants
During the early stages, the New Zealand government has various grant programs aimed at supporting new businesses. Some of these programs are specifically aimed at enhancing regional development. For example, consider the New Zealand government’s Provincial Growth Fund (PGF). While the PGF is no longer accepting new projects, it serves as an example of the types of initiatives that have been launched to stimulate regional economic development.
Previously launched in 2018, PGF focused on supporting economic development in New Zealand’s provinces by offering funding opportunities for businesses in regional New Zealand. In 2020, the PFG launched a 3-year reset, with a specific focus on:
- job creation and income growth;
- short-term construction activity; and
- providing a high degree of visibility to the community to give the public confidence that economic activity was underway.
3. Angel Investors with a Regional Focus
Angel investors play a crucial role in supporting startups. Fortunately, some investors specifically focus on regional opportunities due to a personal or strategic interest in investing outside major cities.
4. Local Business Competitions & Showcases
During the early stages, you may see that regional organisations or business associations will organise competitions to encourage entrepreneurship. As business owners, these events provide an opportunity to showcase your startup and provide the chance to secure funding or other resources. These events can include pitch and innovation challenges within your region.
Additionally, showcasing your regional impact is essential to articulate your positive impact on the local community and economy when seeking funding. Regardless of who your potential investors are, they will often appreciate ventures that contribute to regional development. In your startup pitch, you should emphasise its:
- potential for job creation;
- involvement with the local supply chain; and
- community engagement aspects.
5. Collaborate with Industry Partners
Collaboration with established industry partners can be a valuable source of funding and support, particularly where the communities are much smaller. As such, you should explore partnerships with local businesses or research institutions that align with your startup’s mission. These collaborations may lead to partnerships or direct funding opportunities.
6. Utilise Online Platforms
Geographical boundaries matter less in the digital age. Instead, online platforms can be powerful tools for attracting funding regardless of where your business is based. You should use your online presence to highlight the unique aspects of your startup and its regional connections, including how its regional base contributes to its success.
7. Create Strategic Alliances with Local Government
Local government entities in regional New Zealand are often invested in promoting economic growth and job creation. You should, therefore, explore opportunities for strategic alliances with such entities. This may involve collaboration on economic development projects or participation in government-sponsored initiatives. These alliances can help lead to:
- financial support;
- access to local networks; and
- provide a platform to demonstrate the positive impact of your startup on the regional economy.
Essential reading for anyone building their startup. This free guide includes practical advice and seven real-life case studies.
Key Takeaways
There are many ways to kick-start your startup in New Zealand. Regional startups, especially, might face unique challenges and opportunities. Although some initiatives do not provide your business with immediate investments, they provide opportunities that may lead to investors or members who are interested in your venture. You should explore many methods before you decide which option suits your business, such as:
- regional-specific development initiatives;
- government grants;
- angel investors with a regional focus;
- local business competitions & showcases;
- collaborate with industry partners;
- utilise online platforms; and
- create strategic alliances with local government.
If you need assistance understanding how to seek funding opportunities for your regional New Zealand startup, you can contact our experienced business lawyers to assist as part of our LegalVision membership. You will have unlimited access to lawyers who can answer your questions and draft and review your documents for a low monthly fee. Call us today at 0800 005 570 or visit our membership page.
We appreciate your feedback – your submission has been successfully received.
