NZ startup lending gets a rethink — Kiwibank's StartUp+ goes nationwide
Kiwibank has made its startup business lending programme permanent, responding to what the bank describes as a structural gap in how traditional lenders treat early-stage businesses.
The pilot hit its target within its first month, with demand running at more than three times the level Kiwibank expected — a result the bank says is a clear signal that many founders are not being well served by existing funding models.
What the pilot revealed
Businesses in the pilot spanned biotechnology, health technology, maritime innovation, and FMCG, with founders using the funding to accelerate development and move into new markets.
Joanna Greaves, Kiwibank general manager business products and performance, said the outcomes went beyond the headline numbers.
"What stood out was not just the demand, but what happened next,” Greaves said. “Once founders had access to funding, they were able to move faster and take up opportunities that might otherwise have been out of reach."
She said the results confirmed a gap the bank had suspected was there.
"We saw strong demand from founders who are doing all the right things but don't fit traditional lending models. That's the gap we've stepped in to fill," Greaves said.
The funding gap is well documented: the OECD's Financing SMEs and Entrepreneurs 2026 scoreboard found SME loan stocks remained broadly stagnant across member countries, with borrowing costs still elevated and banks applying stringent lending terms.
The RBNZ's May 2026 Financial Stability Report, meanwhile, found that rising proportions of NZ firms unable to obtain finance on acceptable terms signal that credit demand is going unmet.
Greaves said the broader economic environment only sharpens the case for accessible startup capital.
"For smaller businesses and startups, access to capital is often what helps them turn ambition into action, and that support becomes even more important when costs rise, cash flow tightens, and uncertainty increases," she said.
How the scheme works
The structure behind those outcomes is deliberately different from conventional business lending. Rather than a single upfront loan, StartUp+ releases funding in stages tied to business milestones. Greaves said this was a deliberate design choice.
"That approach reflects how startups actually grow. We're backing progress as it happens and providing help when it's needed most — supporting potential in a structured way that's sustainable for both the business and the bank," she said.
The initiative includes a dedicated team of business banking specialists alongside support to reduce early-stage operating costs.
One pilot participant put a face to that outcome: Capture The Bug founder Ankita Dhakar said the access to capital made a tangible difference.
"The support from Kiwibank gave us the confidence to move faster and pursue opportunities with major clients outside New Zealand,” Dhakar said.
NZ brokers: what StartUp+ means for your self-employed clients
For brokers working with self-employed clients or early-stage business owners, StartUp+ represents a materially different funding path — one structured around business progress rather than traditional collateral and trading history requirements.
Greaves framed the rollout as a values statement as much as a product launch. "This is about recognising where the system isn't working and stepping in with something better."
The programme was developed in partnership with Ministry of Awesome and is now available nationally. Full eligibility details are at kiwibank.co.nz/business-banking/borrowing/business-loans/start-up-plus/.
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