Snowball Effect (equity crowdfunding) explained
Snowball Effect is a New Zealand-based online investing marketplace, that enables New Zealand companies to offer shares to members of the public.[2] Snowball Effect launched in August 2014, after being one of the first to acquire an equity crowdfunding license from the Financial Markets Authority.[1] [3] over NZ$75 million has been raised on the platform.
Companies have a range of options when raising capital through Snowball Effect, including public offers, private offers, wholesale investor offers, debt offers, and bespoke capital raising. Snowball Effect offers companies a variety of services to support capital raising efforts, such as shareholder preparation, offer documentation and marketing, and lead investor sourcing.
Snowball Effect has also developed Orchestra, a platform which provides governance and shareholder tools for companies. Orchestra helps companies manage share registry and nominee management, shareholder communications, compliance, and employee share option plans. The platform also includes portfolio management tools for investors and allows lawyers and accountants to manage their clients’ compliance obligations efficiently.
Board of directors
- Richard Allen
- Hayley Buckley
- Simeon Burnett
Highlights
- Snowball Effect was one of the first two companies to acquire licensing from the Financial Markets Authority.
- Launched New Zealand's first equity crowdfunding offer, Renaissance Brewing, on 11 August 2014.
- Snowball Effect has raised over $75 million through more than 60 offers since launch.
- Invivo Wines has raised a total of $4.4 million through the platform.
- LINK Business Brokers has raised over $6.6 million through the platform.
- Zeffer has raised over $3.6m through the platform.
- AchiPro has raised over $10.6m through the platform.
- Little Island has raised over $3.2m through the platform.
- Snowball Effect begins private capital and wholesale investor services.[4]
- Snowball Effect begins offering share registry services to all New Zealand companies.[5]
Notable Offers
The following is a list of notable offers that have been made through Snowball Effect:
$1.4m[12]
- Aeronavics: $1.5m[13]
- Punakaiki Fund: $2m (Public Offer, June 2015), $889k (wholesale, Jan 2016 as part of a $2,2m round) and $462k (wholesale, Jan 2016 as part of a $2.4m round) [14] [15]
Notes and References
- News: Crowdfunding - Josh Daniell, Snowball Effect. Sykes. Caitlin. 22 July 2014. 9 February 2015. nzherald.co.nz. APN New Zealand Limited.
- News: Law change to kick start capital raising. Fletcher. Hamish. 21 October 2013. 10 February 2015. nzherald.co.nz. APN New Zealand Limited.
- Web site: FMA issues first equity crowd funding licences. Parks. Andrew. 31 July 2014. 10 February 2015. fma.govt.nz. Financial Markets Authority.
- Web site: Snowball Effects appoints private capital head. nbr.co.nz. National Business Review. 30 September 2016. 20 January 2017.
- Web site: Company Share Registry. www.snowballeffect.co.nz. en. 2019-02-10.
- Web site: Brokerage firm LINK raises a further $3.4M in capital . December 12, 2018. www.scoop.co.nz. 2019-02-10.
- Web site: Invivo Wines Take Top Kiwi Crowdfunding Spot . June 27, 2018. www.scoop.co.nz. 2019-02-10.
- Web site: Zeffer Cider surpasses target once again . June 27, 2018. www.scoop.co.nz. 2019-02-10.
- Web site: Alternative Finance Platform Squirrel Group Surpasses $3M on Snowball Effect. 2016-04-08. Crowdfund Insider. en-US. 2019-02-10.
- Web site: Designer Wardrobe completes $1.7m capital raising . May 23, 2017. www.scoop.co.nz. 2019-02-10.
- Web site: ArchiPro undergoes successful $2 million capital raise . August 16, 2018. www.scoop.co.nz. 2019-02-10.
- Web site: Reefton's $1.385m Capital Raise. 2019-01-17. NZ Business.
- Web site: Drone company Aeronavics raises $1.5m equity in a week. Small. Jamie. stuff.co.nz. Stuff.co.nz. 18 February 2015. 24 February 2015.
- Web site: Punakaiki reaches $2 million max on Snowball Effect. 2015-06-29.
- Web site: Investors. 2015-01-12.
