Crowdfunding platform to help businesses raise equity

1 November 2016

MEDIA RELEASE

Crowdfunding platform to help businesses raise equity from Chinese investors

The backers behind an equity crowdfunding platform are expecting significant interest from businesses expanding their capital raising offers to New Zealand Chinese investors.

Crowdsphere, a new joint venture between Armillary Private Capital and Renaissance Wealth Management, was launched this week and replaces Armillary Private Capital’s Crowdcube offering.

The equity crowdfunding platform launched an offer last week for Noted Limited, an electronic medical record software provider, and is well on the way to achieving the minimum funding of $300,000 sought. A second offer for Zavy, a social media analytics platform seeking a minimum of $250,000, was launched today.

Armillary director David Wallace said Crowdsphere combined the simplicity of a digital crowd-funding platform with access to a much a wider pool of investors.

“Crowdfunding has helped many SME owners with capital raising. It’s proven to be effective for funding growth without the costs of a public offer.

“Our deep connections with New Zealand Chinese investors will open up an ignored pool of investors and capital.

“This gives SME owners a better chance of success with equity raising. It broadens the depth of their investor base, which is especially useful for businesses that intend to access the Chinese community in New Zealand and Asia.

“We have a well-established track record in the capital markets and we’ll continue to bring those same disciplines to bear in the crowd-funding market. We know what a credible offer is and what the key factors are and what attributes companies and directors need to have to properly comply with the requirements of the likes of the Companies Act. Our focus will be to secure capital for those with experienced directors and a quality proposition.

“We have been working through a process over the past six months of relooking at our offering and are excited to have teamed up with Renaissance Wealth Management to expand the opportunities into a wider market base.

“We remain of the view that we want to bring a small number of quality offerings to the market each year as opposed to trying to launch as many as possible to create a sustainable business where the economics make sense.”

Claire Zhou, Executive Director at Renaissance Wealth Management, said the joint venture would make New Zealand SMEs an attractive investment proposition for Chinese investors.

“There are some excellent investment opportunities in New Zealand’s SME market. The problem is many Chinese investors are unaware of them.

“In large part that’s because SME owners don’t know how to find these investors, communicate and present this market with a persuasive offer. This venture will help New Zealand SMEs bridge the language barrier and connect them with our extensive network of high net worth investors through popular digital channels like We Chat.”

For further information, visit www.crowdsphere.co.nz.

ENDS

About Armillary Private Capital

Investment Bank and Asset Manager, 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 or 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 $2 billion.

For more information, visit www.armillary.co.nz

About Renaissance Wealth Management

Renaissance Wealth Management Limited (RWM) was founded by Claire Zhou and Eric Ziming, two experienced financial services professionals determined to bring quality wealth management to the Chinese community in New Zealand. Their approach is based on building strong relationships with their clients and investment partners. Understanding their clients’ needs through a genuine relationship enables RWM to deliver on their clients’ expectations using their quality network of investment partners.

For more information, visit www.rwmnz.com

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