This press release was released on the 30th of July 2024, through NZ Entrepreneur.
When an accounts manager working in the farming sector in the Canterbury region decided it was time for a career change, a new opportunity came in the form of a plumbing business – however, there was a twist. The plumbing company in question was not only looking for an employee with an accounting background, but someone who would be keen to buy a 20% stake in the business.
It’s not a typical arrangement for most job positions, but it was the perfect pairing for these two parties, made possible through InvestaMatch – a New Zealand-built online directory platform that connects people, and small businesses, seeking investment outside of the conventional avenues.
“We’re the only New Zealand directory dedicated to giving small businesses access to investment beyond the banks and angel investment-type funding,” explains Ross Young, founder of InvestaMatch.
“Our platform provides introductions to private investors and lets them take it from there. We want people to understand that there are more options available to them than just the banks, venture capital or angel investment – all of which might be too overwhelming. And with what we think is NZ’s largest pool of investors, it’s a resource that’s not yet being fully utilised.”
What Young sees as a key part of InvestaMatch’s offering is helping those who have an idea or an opportunity, and just need a break – someone to give them a hand. And as he points out, it’s not just the financial side of things.
“When you ask people to define investment, they’ll usually say – money. But I actually think it is three-fold. Investment can be knowledge, time or money. Perhaps it’s about getting a foot in the door, or the sharing of a skill. Yes, money is important, but that’s not what investment is always about.
“We actually have plenty of professionals who are more than happy to help with giving people an idea of where to start, or where to go next.
A significant barrier for many solopreneurs, entrepreneurs and small businesses needing financial assistance is that to be eligible for banking lending, angel investment or venture capital, they often have to have already begun their journey, with evidence of how it has been performing and grand plans of the next stages. And as Young says, this is simply not possible for those who aren’t at that level yet.
“I hear of so many people who want to build their own business, but they hit all these walls before they can even get anywhere. Nobody wants to see a balance sheet with nothing on it, and as a startup, it’s really hard to get money from the bigger funding institutions.”
But Young is buoyed by those private investors who really like what InvestaMatch are doing.
“We’ve had a couple say that because we don’t have to ‘follow the rules’ they can see an opportunity to use our system after they’ve been able to raise money for an organisation, but it’s not quite enough and they need private funding to make up the rest. And that’s where we can help.”
And in today’s economic times, there’s no question that InvestaMatch’s offering could be more important than ever. With a recession and thousands of job losses well underway, the rise of solopreneurship is ripe for the taking – where people can seek out small-scale investments and/or mentorship.
“There’s plenty of opportunities out there, but lots of people don’t get started because they are too overwhelmed. But this provides a number of ways investors can get involved – whether it’s buying in as a shareholder or giving their time and knowledge.
“If most people look back to how they started, someone has given them a chance and helped in some way. We also have a number of retirees who are a bit bored and want to be a part of something, while backing someone to succeed.”
Young even sees it working for those who want a step up on the property ladder.
“If two, three or four people get their money together to purchase land or to be a part of a development, they can get shares of the profits and slowly build up their own equity to buy property. Once you’re in the game the money can work for you, but it’s just the ‘getting in’ that can be difficult.”
And Young has a prime example of how InvestaMatch helped connect an individual who had a need with a couple who were able to assist.
“This guy was renting a building then the owner decided he wanted to sell it. The renter wanted to buy it, but because it’s a commercial property, the bank needed a 40% deposit – which was way out of reach.
“A retired couple privately funded the purchase, with security over the building, and he was able to repay them with a better return than what they would have got from having the money in the bank. It was a win-win for both parties, and the type of ‘deals’ we’re privy to see happening through InvestaMatch.”
Over the next few months Young is hoping to see the platform grow with plenty of opportunities available and matches being made. He encourages anyone to put their idea out there to see what eventuates, and for those who have an interest in getting involved in something really unique to jump on board too.
Story by Erin Harrison.