We’re thrilled to announce we have raised over NZ$100m of capital for New Zealand businesses. Since we launched Snowball Effect in 2014, we’ve helped over 50 Kiwi companies successfully raise capital with the help of more than 30,000 investors.
It’s a milestone that our co-founder and CEO, Simeon Burnett, says he is thrilled the company has achieved. “Our mission at Snowball Effect has always been to deliver a range of capital raising options and support products for high growth companies while also offering investors a simple way to discover and invest in exciting investment opportunities.
“Helping over 50 companies collectively raise over NZ$100m is a testament to the hard work the team at Snowball Effect has put in – not to mention the trust companies have placed in us to help assist with their growth plans,” Burnett says.
Despite COVID-19’s impact on many businesses, we’ve continued to see strong interest from investors looking to diversify their investment portfolios. Over the last year, our investor base has grown by 20 per cent, with particular interest from wholesale investors looking to invest in private businesses.In
creased investor interest in capital raising has also encouraged more companies to raise significantly larger amounts. Last year, this led to our highest number of capital raises ever through the platform, with 23 successful completed offers.
“We’re used to seeing businesses start the ball rolling with capital raises around the vicinity of NZ$1.5m, but these days they’re becoming more ambitious,” Burnett shares. “Electric utility manufacturer UBCO successfully raised over NZ$3.5m through Snowball Effect recently and went on to extend their raise to NZ$15m to include a mix of international investors. Plant-based food manufacturer Little Island also raised more than NZD$3m last year, despite being in the thick of the pandemic.”
Our accreditation as an NZX Sponsor means we can now work with companies who want to raise capital and go through the NZX listing process or are considering a dual ASX/NZX listing. “We’re well set up to support companies through their capital raising journey - be that to stay private or go public” Burnett says. “Whether it be by working with them to raise the right kind of capital for their business, creating a wider shareholder base within the business, or through use of other products such as Orchestra to make sure they’re well set up for listing from a compliance perspective.”