Snowball Effect (equity crowdfunding)

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] as of November 2020 over NZ$75 million has been raised on the platform.

Snowball Effect
Snowball Effect
TypePrivate
IndustryPrivate equity
FoundedAuckland, New Zealand 2012 (2012)[1]
Founders
  • Richard Allen
  • Simeon Burnett
  • Francis Reid
  • Josh Daniell
Websitewww.snowballeffect.co.nz

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:

  • LINK Business Brokers: $6.6m[6]
  • Invivo Wines: $4.4m[7]
  • Zeffer: $3.6m[8]
  • Squirrel Group: $3.4m[9]
  • Designer Wardrobe: $2.6m[10]
  • ArchiPro: $2m[11]
  • Reefton Distilling Co.: $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]

References
  1. Sykes, Caitlin (22 July 2014). "Crowdfunding - Josh Daniell, Snowball Effect". nzherald.co.nz. APN New Zealand Limited. Retrieved 9 February 2015.
  2. Fletcher, Hamish (21 October 2013). "Law change to kick start capital raising". nzherald.co.nz. APN New Zealand Limited. Retrieved 10 February 2015.
  3. Parks, Andrew (31 July 2014). "FMA issues first equity crowd funding licences". fma.govt.nz. Financial Markets Authority. Retrieved 10 February 2015.
  4. "Snowball Effects appoints private capital head". nbr.co.nz. National Business Review. 30 September 2016. Retrieved 20 January 2017.
  5. "Company Share Registry". www.snowballeffect.co.nz. Retrieved 2019-02-10.
  6. Wednesday; December 2018, 12; NZ, 10:50 am Press Release: LINK Business. "Brokerage firm LINK raises a further $3.4M in capital | Scoop News". www.scoop.co.nz. Retrieved 2019-02-10.CS1 maint: numeric names: authors list (link)
  7. Wednesday; June 2018, 27; Zeal, 1:58 pm Press Release: Invivo Wines New. "Invivo Wines Take Top Kiwi Crowdfunding Spot | Scoop News". www.scoop.co.nz. Retrieved 2019-02-10.CS1 maint: numeric names: authors list (link)
  8. Wednesday; June 2018, 27; Cider, 4:16 pm Press Release: Zeffer. "Zeffer Cider surpasses target once again | Scoop News". www.scoop.co.nz. Retrieved 2019-02-10.CS1 maint: numeric names: authors list (link)
  9. "Alternative Finance Platform Squirrel Group Surpasses $3M on Snowball Effect". Crowdfund Insider. 2016-04-08. Retrieved 2019-02-10.
  10. Tuesday; May 2017, 23; One, 3:07 pm Press Release: One Plus. "Designer Wardrobe completes $1.7m capital raising | Scoop News". www.scoop.co.nz. Retrieved 2019-02-10.CS1 maint: numeric names: authors list (link)
  11. Thursday; August 2018, 16; Archipro, 3:51 pm Press Release. "ArchiPro undergoes successful $2 million capital raise | Scoop News". www.scoop.co.nz. Retrieved 2019-02-10.CS1 maint: numeric names: authors list (link)
  12. "Reefton's $1.385m Capital Raise". NZ Business. 2019-01-17.
  13. Small, Jamie (18 February 2015). "Drone company Aeronavics raises $1.5m equity in a week". stuff.co.nz. Stuff.co.nz. Retrieved 24 February 2015.
  14. "Punakaiki reaches $2 million max on Snowball Effect". 2015-06-29.
  15. "Investors". 2015-01-12.


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