Angel investors are staying away from new start ups as they become more cautious in the wake of overseas economic uncertainty.
The Young Company Finance Index shows angel investment in young companies fell by more than a fifth to $14.5 million in the first six months of the year and only $5 million was in new investments.
The index shows 43 deals to June, compared with 53 in the first half of last year worth $17.6 million.
Nearly two thirds was follow-on investment and one third was new investments.
The chief executive of the New Zealand Venture Investment Fund Francesca Banga says angel investors are putting their money into existing portfolio companies rather than new start ups.
''I don't think it's risk aversion,'' she said.
Ms Banga said the Venture Investment Fund will work closely with the Angel Association to link entrepreneurs with business people.