Private equity is a type of investment into unlisted securities in private companies (companies that are not listed on a stock exchange like the NZX). Private equity investors in New Zealand include a range of funds, institutions, high net worth individuals and other wholesale investors. Larger private equity investors often focus on providing strategic value to growth companies through customer introductions, mergers, acquisitions, listings, and partnerships. Snowball Effect operates a private equity marketplace that allows investors to discover and invest in high growth companies.
Venture capital is a form of direct investment into a company specifically intended to help the company grow. VC is generally associated with investment in young growth companies that carry higher risks, but also higher potential reward for investors. Venture capital is an important source of funding for companies in New Zealand that need money to grow faster. A venture capital firm is usually investing on behalf of other investors such as financial institutions, insurance firms, and mutual funds. Snowball Effect facilitates capital raising for venture capital funds and provides opportunities for individuals to invest alongside VC investors into fast growing companies.
Angel investors provide an important source of startup investment and seed capital for entrepreneurs. Angels are generally high net worth individuals investing as an individual or as a group, sometimes through an angel network. The best angel investors in New Zealand include experienced professionals and successful entrepreneurs who can provide networks, introductions, and advice. Snowball Effect has a wide network of angel investors who want quality dealflow and quality offer information from promising startups.
Equity crowdfunding is a process which enables a company to raise funds by offering shares to the public. For companies, it provides access to a wide investor audience and it’s a quick and efficient way to raise funds. For investors, it’s a simple channel to discover and invest in private companies. Snowball Effect is New Zealand’s leading equity crowdfunding platform. Other platforms licensed by the FMA to operate in New Zealand include PledgeMe and Equitise. Equity crowdfunding lets companies turn their most loyal customers, fans, and community into investors.
An IPO is the first time that a company’s shares are offered to the public for investment. People also use the term to describe the process by which a company’s shares are first listed on a stock exchange such as the NZX or ASX. Snowball Effect works as a distribution broker to make IPOs available to retail investors who may not have traditional brokerage accounts. Our sign-up process, anti-money laundering checks, and investment process are optimised to make it fast and easy for retail investors to invest into an IPO.