Josh Daniell of Snowball Effect on Crowdfunding
-
Upload
nzsoftware -
Category
Economy & Finance
-
view
272 -
download
1
description
Transcript of Josh Daniell of Snowball Effect on Crowdfunding
@snowballnz
Contents
• Introduction to equity crowdfunding
• Suitable companies and investors • How the process works
• Discussion
@snowballnz
Equity
Offer shares to the public
Rewards
Pre-sales +
donations
Debt
Loans from the
crowd
3 main types of crowdfunding
@snowballnz
The crowdfunding market is growing rapidly worldwide
@snowballnz
New regulatory framework
• Kiwi companies can raise funds by offering shares to the New Zealand public without a costly and time-consuming prospectus
• Up to $2 million per company per year – designed for small businesses
• Companies can access a large investor pool, including customers, users, supporters
• FMA licenses and regulates providers, but each provider will have different model and processes
• NZ is one of the first countries to adopt specific regulation for equity crowdfunding
The Financial Markets Conduct Act and Regulations
@snowballnz
Snowball Effect customers – companies
Companies
Key Benefits• Money. Access to large investor pool
• Marketing. Wide promotion of your business through marketing / PR
• The crowd. Advocates for your business
• Credibility. Greater traction than private offer
• Efficiency. Clear, transparent, and efficient funding process
Example – Renaissance BrewingCrowdfunding offer
• Raised 700k (12.28% of company)• Went to their customers and other supporters first, then to the wider
public
Crowdfunding goals• Funds for growth• Exposure through offer• Harness the crowd
@snowballnz
Snowball Effect customers – investors
Investors
Key Benefits• Access. Deal flow and first-time access to asset class for
public
• Credibility. Greater confidence than private offers
• Simplicity. Consistent information and standard process
• No fees. Easy participation
• Standard protections. No need to negotiate
Investor 1
Snowball Effect
community
• 25 – 65 years old• Disposable
income• Interested in
investing in high risk / high reward assets
Investor 2
Snowball Effect
community
• Retired and wealthy• Highly experienced
and interested in staying involved with NZ business
• Altruistic bent, but still wants to see ROI
Investor 4
Existing audience of company
• Proximity to a certain business, owners, or product
• Not solely motivated by ROI, wants to see that particular business succeed
Investor 3
Snowball Effect
community
• Professional investor
• Invests for ROI• Wants deal flow
and consistent investment information
@snowballnz
@snowballnz
PeopleBoard and Management Team
Advisory Group