Snowball Effect received the very first equity crowdfunding license offered to a funding portal in New Zealand three years ago. The Financial Market Authority granted a license that became effective on July 30, 2014. The event ushered in a new era of online investment in New Zealand and since that time the platform has added new features, adapted and evolved. The most recent news from Snowball Effect was the fact the platform reported its first profit for the fiscal year ending March 2017.
Snowball Effect launched the first public offer using the equity crowdfunding rules in New Zealand. In the company’s second year, it introduced a private offer service and added a nominee service that lets companies manage multiple investors through a single legal entity.
This year it introduced an investor profile that lets investors control what types of private offers they get access to and a director matching service that helps companies find independent or non-executive directors. To date, 80 people have completed their independent director profile.
Snowball Effect has also introduced a share registry management service which is currently tracking the shareholding of 468 investors.
In recognition of their first three years of operation, Snowball Effect has forwarded some interesting data points, along with an Infographic. We are sharing their information below.
- Over its first three years of operation, Snowball Effect has raised $29 million across 35 offers. 25 of these offers were made available publicly and 10 were made available privately. The public offers generated $23.1 million in investment and the private offers generated $6.1 million. The private offers are now the fastest growing part of the Snowball Effect marketplace.
[clickToTweet tweet=”Private offers are now the fastest growing part of the Snowball Effect marketplace #Crowdfunding” quote=”Private offers are now the fastest growing part of the Snowball Effect marketplace #Crowdfunding”]
- The capital being raised in each offer is significant relative to the rest of the industry in New Zealand, with eight offers reaching over $1 million raised and the average public offer reaching $923,000. This is in comparison to a market average for public offers of just $371,000. Large public offers like Zeffer and Designer Wardrobe are said to be attracting significant numbers of investors. The average number of investors into a public offer was 142 people and 14 offers have received investment from over 100 investors.
[clickToTweet tweet=”The largest single investment to date on Snowball Effect was $1.25 million #Crowdfunding” quote=”The largest single investment to date on Snowball Effect was $1.25 million #Crowdfunding”]
- There have been 3,935 investments made through Snowball Effect. The largest portion of the amount invested came from investments in the $10,000 to $50,000 range, with $8.9 million worth of investments from this range. The largest single investment was $1.25 million and 632 investments were over $10k. At the smaller end of the scale, the largest number of investments was in the $1k and $5k range, with 2,162 investments in this range.
- The platform now has an audience of 15,509 of whom 2,413 have made an investment. So far, 27% have made more than one investment and 7.5% have made four or more investments. 17 people have invested in more than 10 offers and the most active investor has invested in 25 offers.
[clickToTweet tweet=”The single most active investor on Snowball Effect has invested 25 different times #Crowdfunding” quote=”The single most active investor on Snowball Effect has invested 25 different times #Crowdfunding”]
- The average age is 45, the youngest investor is 18, and the oldest investor is 88. 24% of active investors on the platform are female, which compares to a national average in 2005 of 5% for angel investor networks in 2012 (according to the Angel Association of NZ).
- There are 896 wholesale investors registered on the platform. Wholesale investors are eligible to receive a wider range of investment offers because of their net-worth, experience with private investments, or financial sophistication. The average investment into a private offer is $35,000 and there are 48 investors who have invested over $100,000.
