Snowball Effect raises $10 million in just 15 months

Media release

16 November 2015

Snowball Effect raises $10 million in just 15 months

Equity crowdfunding platform’s success driven by curated deal flow, quality offer information and strong investor networks

Snowball Effect, New Zealand’s first equity crowdfunding platform, has successfully raised $10 million for 11 different Kiwi companies since its first offer in August 2014.

Co-founder and Head of Platform, Josh Daniell, says the uptake from investors has been fast. “The New Zealand equity crowdfunding market has cumulatively raised $14 million in only 15 months,” Daniell says, “and we are overwhelmed that $10 million of this has come through Snowball Effect”.

In comparison to the rest of the world, Kiwis have been among the fastest to adopt this new investment method, for example only £1.6 million was invested in the United Kingdom in its first year of equity crowdfunding.

Snowball Effect attributes its success to curated deal flow, quality offer information, and strong investor networks. Although approached by over 800 companies, just 13 companies have been approved to proceed with an offer on Snowball Effect. Offers have traversed a broad range of sectors including technology, entertainment, pharmaceutical, and food & beverage companies.

“We carefully consider the companies we approve to make offers on our platform. We are building an audience of savvy investors, so we need to make sure the deal flow is meeting their expectations” says Daniell. “This gives companies the best chance of a successful offer, and makes it easy for investors to assess and compare each opportunity.

Snowball Effect says it has had investments from over 1,500 investors so far, and has had over 8,000 people sign up to use its service.

Highlights include reaching the $2 million equity crowdfunding limit twice with Invivo Wines and Punakaiki Fund, raising $1.5 million in 6 days with Aeronavics, and completing the world’s first successful equity crowdfunding offer for a feature film with The Patriarch.

Ends

About Snowball Effect

Snowball Effect is New Zealand’s leading equity crowdfunding provider. Equity crowdfunding is a new process in New Zealand which lets Kiwi companies raise funds by offering shares to the New Zealand public. This improves access to finance for SMEs, and enables everyday people to buy shares in companies that were previously inaccessible to the public. Snowball Effect’s vision is: a New Zealand economy, fuelled by emerging businesses, backed by everyday Kiwi investors. For more information visit www.snowballeffect.co.nz

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