Snowball Effect 2023 Q2 and Q3 capital raising recap

  • Written by Snowball Effect
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After kicking off the 2023 calendar year with several exciting capital raises for high-growth New Zealand businesses, we continued to build momentum in quarters two and three with successful capital raises for First Table, Tether, Zeffer, and Rebel Fund II. 

Below are key highlights from these capital raises.

First Table - $3.6m raised

  • Amount raised: $3,642,580 was raised via Snowball Effect
  • Single largest investment: Made by venture capital firm Invest South 
  • Other large investments: Five investments over $100k.

Background

New Zealand hospitality technology platform First Table approached Snowball Effect with the goal of raising a minimum of $1.5m of new equity. Funds raised were to help First Table to capitalise on their new product, Regular Table, support team growth and expand into new markets. 

First Table was founded in Queenstown by Mat Weir and has expanded globally to have now a presence in Australia, the UK, Ireland, Canada and Bali.

Outcome 

First Table successfully raised over $3.6m in capital. This was a combination of institutional capital, high net worths and customers and clients. Snowball Effect also assisted First Table in recruiting its Chairman and Global Head of Sales.

Tether - $844k raised

  • Amount raised: $844,050 was raised via Snowball Effect
  • Single largest investment: $250k
  • Other large investments: Two $100k investments and one $75k investment 

Background

Tether approached Snowball Effect with the goal of raising $800k of new equity. Funds raised were to help Tether to scale the business in New Zealand and overseas. 

Tether is a hardware-enabled software company that provides solutions for buildings to improve their performance, save costs, and meet sustainability standards.

Outcome 

Tether successfully raised $844,000 in capital in May 2023. Of the new investors who came on board, three strategic investors have provided valuable guidance, introductions and reseller relationships to Tether's team.

Zeffer - $348k raised 

  • Amount raised: $348,295 was raised via Snowball Effect
  • Single largest investment: $62k

Background

It was great to work with New Zealand premium beverage brand Zeffer for the fifth time to raise growth capital. 

From humble beginnings selling small batches of cider at the Matakana Farmers Market in 2009, Zeffer has grown to become a leading Kiwi beverage brand. They have seen strong growth both locally and in Australia across multiple beverage categories.

Outcome 

Zeffer successfully raised over $348k in capital during Q3 of 2023. Funds raised have enabled Zeffer to accelerate growth and capitalise on current market momentum.

Rebel Fund II: $750k raised

  • Amount raised: $750k
  • Single largest investment: Several over $100k

Background

We were excited to provide our Kiwi wholesale investors with the chance to invest in Silicon Valley-based Rebel Fund II, providing access to Y Combinator startups. 

Outcome 

Globally, over USD75m was invested in Rebel Fund II, and it was great to see our New Zealand wholesale investors taking part in this Fund via Snowball Effect. Our platform provides a simple way for these investors to access and participate in international investment opportunities.

26 Seasons - $2.91m raised

  • Amount raised: $2.91m
  • Single largest investment: $300k
  • Other large investments: Several $50k and $100k investments

Background

New Zealand company 26 Seasons' capital raising goal was to raise up to $3m in funds to help grow its agri-tech business. 

26 Seasons operates a Controlled Environment Agriculture (CEA) farm, which uses high-tech software to optimise indoor growing conditions, allowing strawberries to be grown year-round. Their produce is stocked by leading local supermarkets.

Outcome 

26 Seasons successfully raised $2.91m in Q3, and there are still ongoing conversations that could result in further investment being made. The total amount raised was a combination of institutional capital, high-net-worth, wholesale and retail investors, as well as 26 Seasons customers.

Interested in investing in other exciting private businesses like these? Check out our latest investment opportunities.

Or, if you're looking to raise capital for your business in the next six to twelve months, chat with our team about what options are right for you. Email us at [email protected] or call us on 0800 SNOWBALL.
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Financial Market Conduct Regulations – Warning statement about equity crowdfunding
  • Equity crowdfunding is risky.
  • Issuers (companies issuing shares) using Snowball Effect’s facility include new or rapidly growing ventures. Investment in these types of businesses is very speculative and carries high risks.
  • You may lose your entire investment, and must be in a position to bear this risk without undue hardship.
  • New Zealand law normally requires people who offer financial products to give information to investors before they invest.
  • This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to offers by issuers using Snowball Effect to raise funds. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.
  • Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.
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Snowball Effect warning – Please understand the characteristics of this new marketplace

Snowball Effect is proud to provide access to early stage equity investments for everyday Kiwis. We’re passionate about improving financial literacy in New Zealand and increasing investment into wealth-creating assets.

However it’s crucial for you to understand the characteristics of this new marketplace.

Companies making offers through Snowball Effect will range from very early stage businesses with little more than an idea, to more established businesses that may already be profitable. The risk of investing in a business tends to decrease as a business develops and matures. For very early stage businesses, history suggests that perhaps only one or two out of ten will make significant returns for investors. Despite the hopes and belief of the promoters, some will putter along without much happening for a long time. In others the total investment could be lost.

Investing in early stage businesses is risky. Overall, investor returns tend to be greater than the amounts invested, but you might not be one of the winners. Some of the other key risks include:

  • Loss of capital – You could lose your entire investment.
  • Illiquidity – There is no guarantee that you will be able to sell your shares when you want to, or at all. Currently, there is no recognised secondary market for trading shares in companies funded by equity crowdfunding. Buying and selling among existing shareholders is generally lawful, but some companies may not facilitate it. We expect that open market trading facilities will eventually be authorised, but that is not certain at this time.
  • Lack of returns – Few early stage unlisted businesses pay dividends. They tend to reinvest what they earn in the growth or survival of the business.
  • Dilution – Companies may need more funding to grow or to survive. If they issue further shares, your share of the company will reduce unless you put up your proportion of the new investment. That reduction is called dilution.
  • Material events – Early stage businesses are often small and have narrowly focused offerings. This can increase the vulnerability of the business to internal and external threats, and make it harder to absorb material events such as loss of key staff and customers.
  • Lack of control – As a minority shareholder, you may have little influence on how the company develops. Companies are ruled by simple majority for most decisions. For example, you will not determine who the directors are unless the majority of shareholders who vote on an issue agree with you.

To decrease exposure to the risks, these types of investments should only be made as part of a diversified portfolio. Spread your risks. Only invest money that you can afford to lose.

Remember that you will never get enough information to know in advance how things will turn out. No one, even the directors of a company, can know in advance with 100% certainty just what will make a business fly, and what will bring it down. Even in large public offerings the information available is never enough to be sure how the future will turn out.

Please seek independent advice if you don’t fully understand the characteristics of this marketplace or the information in an offer.

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