Financial expertise differentiator in crowdfunding platforms

18 November 2014

MEDIA RELEASE

Financial expertise the differentiator in crowdfunding platforms

Long-standing investment bank and asset manager Armillary Private Capital expects its crowdfunding arm, Crowdcube, to offer compelling opportunities for investors looking to add growth companies to their portfolio.

With the Financial Markets Authority having recently granted Crowdcube its equity crowdfunding licence, the company is looking forward to a new era in the capital markets.

Armillary director David Wallace said the popularity of capital raisings across the New Zealand market showed there was demand for investments in growth companies.

“We’ve been speaking with clients and prospects about adding a crowdfunding platform to our capital raising toolkit for some time. They’re very interested in using this service to raise equity as it doesn’t come with the significant costs of a public offer but allows access to a wider investment community.

“They also know that their best prospect for success comes through partnering with someone who is very experienced in the capital markets and knows what the critical success factors are. Our partnership with United Kingdom-based Crowdcube means that businesses can benefit from our collective experience, disciplines and smarts when raising equity through crowdfunding.”

Armillary is establishing its equity crowdfunding platform via a joint venture with Crowdcube. Crowdcube has been in operation for nearly four years, and has been used to raise more than £42 million from more than 105,000 investors in the UK market. Crowdcube’s equity crowdfunding platform, which operates in the UK, Sweden, Spain and Poland is also being launched in Brazil, Dubai and Italy, in addition to New Zealand.

“For businesses seeking capital, we see that a well-prepared crowdfunding offer provides an attractive option to access a wider range of investors who may not have otherwise been accessible,” Mr Wallace said.

“Additionally, when crowdfunding is used properly, it can open up plenty of good investment opportunities. What investors want to be presented with is a trustworthy and credible proposition. We already have the confidence of investors through decades of success in capital raising, and look forward to applying our experience to the crowdfunding market.”

Armillary currently have a number of excellent capital raising prospects for the Crowdcube platform. Mr Wallace said that, given the time of year, Crowdcube may not offer its first equity raising opportunity until early in the New Year. Investors are encouraged register with Crowdcube at www.crowdcube.co.nz so they can stay informed.

ENDS

Notes for media

About Armillary Private Capital

Based in Wellington, Armillary Private Capital has been involved in New Zealand private capital markets since 1992. Armillary provides investment banking, asset management, financial training and advisory services to private, listed and government related clients throughout New Zealand. Armillary also manages the Unlisted share trading platform, an internet-based securities trading and communications facility for companies to trade shares and keep their shareholders informed. The current market capitalisation of Unlisted is just under $1 billion.

For more information visit www.armillary.co.nz

About Crowdcube

Crowdcube operates Britain’s largest crowdfunding website, crowdcube.com. Dedicated to backing UK-based businesses, Crowdcube enables entrepreneurs to showcase their business's investment potential online and raise finance from ordinary people in return for shares. Since February 2011, over 105,000 investors have registered with Crowdcube, helping raise more than £42 million for over 150 UK businesses.

For more information visit www.crowdcube.com

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