When we launched Snowball Effect, there were a couple of key things that we wanted to achieve in our first 12 – 18 months. The first one was to provide companies with an efficient way to raise capital, and investors with a simple way to invest in a variety of interesting growth stage businesses. The second was for those that invested to have an exciting, relevant relationship with the companies that they invested in – to be close to a young company’s learning, growth, success or failure. Shareholder communication in private companies is typically poor, and we were keen to play a part in significantly raising the bar.
As a result of discussions with investors in recent months it has become apparent that the level of engagement that we hoped to facilitate hasn’t occurred in some instances. In response to this we have committed to become more hands on, and provide greater support to companies in their efforts to communicate with shareholders.
Good shareholder communication is not only valuable to shareholders, it’s valuable to the companies themselves.
Good shareholder communication is not only valuable to shareholders, it’s valuable to the companies themselves. Shareholders are more likely to support future capital raises if they feel that they have been taken on the journey and been informed promptly as significant events unfold (this holds true even if the news is bad). And companies can unlock significant value from shareholders who act as advocates for their products if they’re mobilised by engaging and regular information.
We’d also like to keep the wider public informed on how companies that have previously raised capital through Snowball Effect are progressing. Improving this aspect of a company’s post raise performance will be a work in progress, and it will evolve over time, however we acknowledge that we need to do more to encourage companies to communicate in a timely, relevant fashion.
One of our initiatives is to provide the public with a Quarterly Company Progress Report. This report will present an overview of how companies that have raised capital publicly through Snowball Effect are progressing post-offer. It’s an opportunity for these companies to continue to tell their story to a wider audience, and it’s an opportunity for you to gain insight into the communications that shareholders receive and to understand the milestones that these companies have reached.
Companies each commit to providing quarterly reports to shareholders within six weeks of each quarter’s end (including an annual financial report at the end of the financial year). The progress report will be released shortly after that period, and will include key points from the shareholder quarterly reports of all companies that choose to be involved. The details included in the progress report are only summaries of information that has already been communicated to shareholders.
The current report covers the quarter from October to December 2015. All information has been provided by the companies and has not been verified by Snowball Effect. Not all companies could be featured in this report for various reasons (such as commercial sensitivity). Companies that have raised capital in 2016 have not been included, but will be added in when our quarterly report is in sync with their shareholder reporting.
All of the missing companies have committed to be included in the next report. Examples include the feature film Mahana (previously called The Patriarch), which is currently screening in NZ and finalising Box Office and international sales figures for shareholders, and Renaissance, which is in the process of employing a new CEO and will soon be reporting to shareholders on commercial milestones.
We are frequently asked how Snowball Effect is progressing. We’ll also include an overview of how we’re tracking in each report. Our first overview is a snapshot of progress to date, rather than the previous quarter.
Invivo is one of New Zealand’s fastest-growing wine brands. It produces, markets, and sells a range of wines and spritzers, mostly into offshore markets. Invivo raised $2m through Snowball Effect in April 2015 - the first company in New Zealand to raise the full $2m that can be raised by each company from retail investors through the equity crowdfunding regulations.
Invivo raised a total of $2,000,000 in March 2015
Breathe Easy is developing Citramel™, an inhaled medicine for the treatment of cystic fibrosis (CF) a chronic genetic illness affecting the lungs and digestive systems of approximately 75,000 children and adults worldwide. Breathe Easy raised over $600k through Snowball Effect in May 2015.
Breathe Easy raised a total of $613,428 in May 2015
Red Witch is a boutique manufacture of world-leading premium analog guitar and bass effects pedals. Red Witch raised $406k through Snowball Effect in June 2015.
Red Witch raised a total of $406,000 in June 2015
Mad Group is one of New Zealand’s fastest growing companies, with two extremely passionate brands under one shelter: Mad Mex and Habitual Fix. Mad Group raised $500k through a Snowball Effect Private offer in June 2015.
Mad Group raised a total of $500,000 in June 2015
Punakaiki Fund is one of the most active venture capital investors in New Zealand, with investments in 14 high-growth companies across New Zealand. Punakaiki Fund raised $2m through Snowball Effect in July 2015, and over $400k further from Snowball Effect wholesale investors in January 2016.
Punakaiki Fund raised a total of $2,000,000 in July 2015, and $462,000 in January 2016
WOOP makes cooking dinner easy and is a world leader in the pre-prepared food-kit delivery space. Founded by Thomas Dietz in 2015 WOOP is answering to the demands of busy professionals in Auckland who are time poor but still looking to cook delicious healthy dinners. WOOP raised $800k through the Snowball Effect in September 2015.
Woop raised a total of $800,000 in September 2016
UrbanSherpa is an innovative technology that allows Auckland customers to get practically anything picked up, dropped off or purchased within an hour. Urban Sherpa raised over $300k through Snowball Effect in November 2015.
UrbanSherpa raised over $300,000 in November 2015
Snowball Effect is an online marketplace for financial products. Our mission is to simplify investment into high growth Kiwi companies. We’ve been funded by existing shareholders and cash flow to date to support the continued growth and development of the equity capital market for early-mid stage New Zealand growth business.
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