Alternative Finance Platform Squirrel Group Surpasses $3M on Snowball Effect

Squirrel LogoSquirrel Group, an alternative finance platform consisting of Squirrel Money, Squirrel MortgagesSquirrel Money Services and TenanSee has successfully secured $3 million during its funding round on Snowball Effect.

As previously reported, Squirrel Mortgages is considered one of the largest mortgage brokers in New Zealand with expectations for the platform to facilitate $1 billion in mortgages for the fiscal year ending in March of 2017.  It is said to have generated $548,000 of EBITDA in 2014, last year that number hit $605,000. The company is forecasting operating earnings of $1.6 million for the 2016 March financial year. Squirrel Group’s peer-to-peer lending portal, Squirrel Money, which was launched last November, has already originated $1.7 million in loans and is expected to generate a million dollar loss for this fiscal year.

Squirrel GroupJohn Bolton, Squirrel CEO,  recently announced there had been $4 million of pre-registered interest from the company’s customer base who are likely to fill the $2 million available through the retail side of the offer. Although the campaign has yet to reach its $4 million goal, Snowball Effect stated that it is considered the largest raise ever through an equity crowdfunding marketplace in New Zealand. 

Snowball Effect also noted that $640,000 still available to retail investors, and the remaining balance available to wholesale investors. If the round hits the full subscription, investors will be purchasing 17.9% ownership in the company with a pre-money valuation of $22.9 million. Squirrel Group states that banking is the most profitable industry in New Zealand. The campaign is set to close in less than 24 hours. 

 


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