Strong demand from Kiwi companies for equity crowdfunding
Strong demand from Kiwi companies for equity
· Snowball Effect open for investor registrations
· Stephen Franks joins Snowball Effect as a Director
Equity crowdfunding provider Snowball Effect, which this week opened for investor registrations, is actively working with 11 New Zealand companies seeking to raise funds in exchange for equity in 2014.
Two of the businesses are start-ups; nine are established companies operating across a number of sectors including retail clothing, entertainment, cloud-based software, food & beverage retail and foodservices. The 11 companies are part of a group of over 100 Kiwi companies who have expressed interest in raising funds through Snowball Effect.
The businesses are working on their investment propositions, with those closest to launching seeking capital of between $100,000 and up to $1 million. Companies will have up to 60 days to raise their funds.
Snowball Effect Director, Simeon Burnett, says they are currently working through the licensing process with the Financial Markets Authority and hope that the first investment opportunities are listed on www.snowballeffect.co.nz from mid-May.
“We are very pleased with the level of interest from Kiwi businesses,” says Mr Burnett.
“But we are not surprised. Our market validation programme, conducted alongside one of our partners The Icehouse, highlighted that many SMEs are attracted to the simplicity, low cost and the short time frames involved in raising funds through equity crowdfunding.”
Mr Burnett says investor registration is now open through the Snowball Effect website.
“Registration is simple, free of charge and there is no obligation to invest. Those that are registered will be notified when the first investment opportunities become available,” he says.
“Whether investors are looking to back a Kiwi business or favourite brand, diversify their portfolio, invest in a new asset class, or simply see the opportunities that are available, Snowball Effect will give them access – whatever their budget – to exciting opportunities that were previously only accessible to Venture Capital and Angel Investment groups.”
Snowball Effect has appointed highly experienced, Wellington-based commercial lawyer Stephen Franks as an independent Director. Mr Franks joins the three founding Directors Simeon Burnett, Richard Allen and Francis Reid.