If words of Phil McCaw, Chairperson of Angel Association then the angel investors have shown a lot of interest in the younger New Zealand companies. They have found great opportunities in these firms and have lately become the key source of capital for them.

There has been, shows data, a record level of angel investment.

The Young Company Finance Index has touched record highs and as much as $31 million has been invested by the angel investors during the first half of 2010. For the whole year the total investment touched $52.2 million as against $42.7 million of the previous year.

Phil said that the growth in angel investment is a sign of growth ahead. This is important for the young companies since this helps in building a pipeline for capital.

It has been observed that angle investors generally put their money, which is close to $1 million, in new start ups. And since there is lack of any other source of capital for start ups, this is surely news that has come with new hope.

Also, Venture funds are needed so that $2-5 million can be invested.