New Zealand’s angel investment market is showing signs of renewed momentum, with deal activity, investor participation and portfolio diversification all lifting in 2025, according to Catalist’s second annual New Zealand Angel Market Report.
Angel Association New Zealand (AANZ) says the data points to a healthier early-stage ecosystem, as investors back more companies earlier, spread risk across wider portfolios and work more collaboratively to support longer growth journeys.
Total angel investment reached $13.9 million in 2025, up 2.7 percent year-on-year, the first annual increase since 2021. While overall capital deployment remained steady, activity surged beneath the surface. A total of 167 deals were completed, up 33.6 percent, signalling a strong rebound in early-stage deal flow.
The number of active angels also rose sharply, increasing 38.7 percent to 455 investors, with notable regional growth, particularly in Otago.
According to Bridget Unsworth, CEO at AANZ, the market is undergoing a period of “quiet recalibration”.
“Total capital invested remained broadly consistent with 2024, while deal activity increased 33 percent, signalling a focus on backing a wider range of companies, supporting diversification and longer-term outcomes,” Unsworth says.
That recalibration is reflected in the way capital is being deployed. While new investments increased 8.6 percent by value, nearly twice as many companies received funding, resulting in smaller average cheque sizes (down 17.6 percent).
“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,” she says.
“It also highlights the growing importance of strong syndication and active investor engagement as companies pursue longer paths to scale.”
Geographic diversification is emerging as a key strength of the market. The report notes that the rise in angel numbers – from 328 to 455 – is helping build a more nationally connected ecosystem.
“This geographic diversification is significant, bringing not only capital but also local networks, operational expertise, and a stronger pipeline of regionally based companies, key ingredients for a truly national innovation economy,” Unsworth says.
Deep tech was another standout in 2025, with investment rising from $4.4 million to $6.6 million, more than 20 percent above 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.”
Quarterly data reinforces what AANZ describes as a cautiously optimistic outlook. Angel investment rose 32.6 percent quarter-on-quarter, with more than double the Q4 capital flowing to businesses with female founders.
At the same time, around $3.8 million in investor returns were recorded, supporting capital recycling back into the ecosystem and helping to maintain confidence.
Unsworth says the results highlight a market that is becoming more connected, disciplined and inclusive.
“Looking ahead, the focus is on strengthening connections between investors, founders, and institutions; supporting companies through the ‘messy middle’ of growth; and sustaining confidence in New Zealand’s ability to build globally relevant early-stage companies within a collaborative ecosystem.”
