mmm NZ seems very high in the rankings but the vc/angel investment community very immature over here... possible opportunity for low hanging fruit just across the ditch for a few valley based investors perhaps ? ;-)
The legal process of getting a company going here in NZ is really very simple. The distance from the rest of the world feels kind of overwhelming at times which is our big disadvantage. No over land connections with other countries, not in the middle of a nice trade route or anything. Great time to be a techy here though, the internet is a wonderful thing, when it works.
I saw a big of talk about VC work in agriculture and so on, not so much in the web space.
The company has been extremely successful, but the software is complex and recruiting and retaining skilled employees here has become an issue for them. I think they've been forced to move some R&D over to the US as a result.
I think the distance thing is a factor, however for internet based start ups it's not as important.