Equity crowdfunding The New Zealand story Contents 1. New Zealand - - PowerPoint PPT Presentation

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Equity crowdfunding The New Zealand story Contents 1. New Zealand - - PowerPoint PPT Presentation

Dec 19, 2022 20 likes •233 views

Equity crowdfunding The New Zealand story Contents 1. New Zealand market 2. Companies 3. Investors 4. The future 5. Challenges 6. Critical success factors The crowdfunding market is growing rapidly worldwide Regulatory framework

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Equity crowdfunding

The New Zealand story

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Contents

1. New Zealand market 2. Companies 3. Investors 4. The future 5. Challenges 6. Critical success factors

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The crowdfunding market is growing rapidly worldwide

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Regulatory framework

  • Capital Markets Task Force / MBIE / FMA
  • Offer shares to the New Zealand public without a prospectus
  • Up to $2 million per company per year

Financial Markets Authority

  • FMA licenses and regulates providers
  • A lot of delegated authority – platforms respond to market demand
  • Licensed platforms
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Friends, Family (and Fools) Angel investors Equity crowdfunding Friends, Family (and Fools) Banks

Funding options in NZ

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The New Zealand Market

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Companies on Snowball

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Companies

  • Money – Access to large investor pool
  • Marketing – Wide exposure and shareholder advocates
  • Efficiency – Clear, transparent, efficient funding process
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  • Over $5m (RM13.3m) revenue
  • Customers in NZ + exporting
  • verseas
  • Intention to list on secondary market

Case study

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Investors

  • Access – Deal flow in new asset class
  • Simplicity – Consistent information and standard process
  • No fees – Easy participation
  • Standard protections – No need to negotiate
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Investors

Average $4500 (RM12k) Investment range $100 – $500,000 (RM260 – RM1.3m) Gender split 27% female

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Investor profiles and marketing

  • 25 – 65 years old
  • Disposable income
  • Interested in investing in high

risk / high reward assets

Investor 1

Snowball Effect and company

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Investor profiles and marketing

  • Retired and wealthy
  • Highly experienced and

interested in staying involved with NZ business

  • Altruistic bent, but still wants to

see ROI

Investor 2

Snowball Effect and company

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Investor profiles and marketing

  • Professional investor
  • Invests for ROI
  • Wants deal flow and consistent

investment information

Investor 3

Snowball Effect and company

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Investor profiles and marketing

  • Proximity to a certain business,
  • wners, or product
  • Not solely motivated by ROI,

wants to see that particular business succeed

Investor 4

Company

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Age and investment size / frequency

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Future of equity crowdfunding

UK Market

  • Began in 2011
  • Annual average growth rate of 410%
  • 43% of angels invested in 2014
  • 30% of seed investment in 2014
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Future of equity crowdfunding

New Zealand Market

  • Larger raises with later stage

companies

  • Co-investment
  • Snowball Private
  • Secondary market
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Challenges

Exit Valuation Institutional funding

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Critical success factors

  • Curated deal flow
  • Buy-in from credible investors
  • Demonstrate ability for investors to make returns
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Discussion

snowballeffect.co.nz josh@snowballeffect.co.nz +64 27 634 2463