Recap of the last 3 years

Written by Snowball Effect · Published on Mon, 28 August 2017

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Snowball Effect has now been operating for three years. Our three year anniversary seemed like a good time to take a moment and reflect on our progress so far. We have come a long way since year one, and our last recap at year two.

Over the last three years, 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.

We'd like to thank the companies and entrepreneurs that we've dealt with along the way, and have trusted us to support your capital raise. Thank you as well to the investors and partners who have engaged with us, provided us feedback, and generally supported this new asset class as it becomes an increasingly important part of what we hope will be a more exciting and efficient capital market in New Zealand.

At three years old our marketplace is still very new. We're excited about the plans that we have for the next year or so. We look forward to working with you.

Capital raised

The capital being raised in each offer is significant, with eight offers reaching over $1 million raised and the average public offer reaching $923k. This compares to a market average for public offers on other platforms of just $371k. Large public offers like Zeffer and Designer Wardrobe are 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.

Investment sizes

There have been 3,935 investments made through Snowball Effect. The largest portion of the amount invested came from investments in the $10k to $50k 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. The largest number of investments was in the $1k and $5k range, with 2,162 investments in this range.

Investor behaviour

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.

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).

Wholesale investors

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 $35k and there are 48 investors who have invested over $100k.

Additional services

In our first year, we launched the first public offer using the equity crowdfunding rules in New Zealand. In our second year, we introduced the private offer service and added a nominee service that lets companies manage multiple investors through a single legal entity. This year we 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 - 80 people have completed their independent director profile. We have also introduced a share registry management service which is currently tracking the shareholding of 468 investors.

A high-res version of the 3 year infographic is available to view here:

A pdf version of the infographic is available for download here: