The best time to start a business can be when the economy is down. That’s because entrepreneurs with good ideas will find cheaper land, labour, supplier contracts, and other ingredients that go into starting a business. Angels that back such ventures can earn impressive long-term returns. The downside of a slump, however, is that investors can be more cautious and risk averse. Yet even in hard times, a smart angel will not neglect the ...more »

The value of United States angel investments in 2008 dropped by 26.2 percent from the year before, but the number of deals was relatively unchanged, according to the 2008 Angel Market Analysis released by the Centre for Venture Research at th eUniversity of New Hampshire. Total investments in 2008 were $19.2 billion, a decrease of 26.2 percent from 2007's investments of $26 billion.  the number of entrepreneurial ventures which received ...more »

Underpricing of an initial public offering is less likely if a company is backed by angels compared with venture capital-backed firms, according to new research from the University of New Hampshire’s Centre for Venture Research. Angel investors do not have the agency problems inherent in venture capital investments, according to the research authors, Professors William Johnson and Jeffrey Sohl.   “Angels invest their own ...more »

The last couple of weeks have seen: the Reserve Bank Governor restate the need for New Zealanders to change their borrowing habits; suggestions that the recession is almost over; a credit rating agency put a negative watch on New Zealand; and a bank suggest that it may again lend more than 80% of a house's value.  Muddled could be one response to these events.  Despair coudl be another.   Firstly, as to credit ratings, the ...more »

New Zealand is exposed to a weak and unpredictable global economy and the consequences of its own poor economic performance. Over the last decade its productivity growth rate has halved, the current account and net foreign liabilities have deteriorated markedly, the state sector has grown rapidly without much sign of corresponding benefits to New Zealanders – and there is much more. Professor Paul Callaghan highlighted these serious ...more »