Snowball Effect is the first equity crowdfunding platform to offer shares in a New Zealand business and they started off with a jump as Renaissance Brewing offered interested investors the chance to own shares in their craft Brewery.
Hardy Michel from Snowball Effect said in an email,
“Renaissance Brewing’s offer is now live on Snowball Effect. This is the first equity crowdfunding offer to ever be made in New Zealand!
Our dream of helping Kiwi companies raise funds from everyday Kiwi investors is now a reality. We’re absolutely thrilled to provide this opportunity to registered investors via Snowball Effect’s website.”
Equity crowdfunding was only recently legalized in the Kiwi nation. Legislation was adopted in April 2014 and this past July the Financial Market Authority (FMA) announced they were ready to grant licenses to equity crowdfunding platforms. It was reported that 5 platforms had submitted to receive licenses this past month with two PledgeMe and Snowball Effect receiving the first licenses. Equity portals must adhere to certain minimum requirements to receive and maintain operational status by the FMA. Elaine Campbell, FMA Director of Compliance, said at the time;
“The FMA is satisfied that both PledgeMe and Snowball Effect have met the criteria for a licence and have demonstrated how they’ll meet the minimum standards set out in our licensing guide.
“This is an important step in enabling a more open and innovative market for companies and investors.
“However, it’s important to remember that companies issuing securities through crowd funding services require less disclosure than companies listed on the registered exchange, NZX.”
“Typically, these companies will be at a much earlier stage in their existence than listed companies, so their financial track record and business prospects will be much less clear.”
Renaissance Brewing, the very first company to raise equity via crowdfunding, leaped out of the gate as the offer quickly garnered investor interest. The offer was soft launched to registered individuals on the Renaissance web site. At most recent check the offer stood at over 25% funded on the minimum target of raising $600,000 for 10.71% equity in the company. Investors will also receive “rewards” including;
- Special shareholder pricing on beers through our website and occasional shareholder offers.
- Shareholders purchasing 1,000 shares or more through this offer – for every increment of 1,000 shares, you will receive one free 12 bottle mixed case of standard range beer a year, delivered anywhere in New Zealand, all taxes paid. This case has a RRP of $100, so you can work out the ROI on this benefit alone. (2 x Discovery, Perfection, Voyager, Stonecutter, Elemental and MPA).
- Shareholders will have access to very limited release shareholder beers that are in the pipeline. The first beer off the rank here will be a Brandy Barrel Aged Craftsman that has been maturing in Johannshoff brandy barrels since spring 2013. Being a shareholder (or friends with a generous shareholder) is the only way you will be able to get your hands on these beers.
- Shareholders will be invited to the Renaissance Annual Shareholders Get-Together that will take place in Marlborough each year, where we discuss Renaissance, talk craft beer, drink craft beer, eat good food, taste limited release beers, listen to music and generally have a good time.
The “hybrid” offer has become typical around the world in countries that have legalized equity crowdfunding. Connecting directly to committed consumers with special offers is seen as developing a deeper bond to the brand.
Snowball Effect stated in a post on their site;
“There is no doubt that equity crowdfunding is going to shake things up in the world of investment, but it will also significantly advance the commercialisation path for tech companies. The future success of the NZ economy depends on the translation of our world class research into new businesses generating wealth for the nation.”
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!