Icehouse Ventures: Seed Fund III Investment offer preview

Icehouse Ventures is New Zealand’s most active early-stage investment firm since 2015. Snowball Effect has partnered with Icehouse Ventures, giving Kiwi investors a simple way to gain access and exposure to a portfolio of NZ’s early stage startups with global opportunities.

Background

Following on from the popular IVX Fund which raised in 2021 with an investment mandate of “late-stage” companies (Series A-D stage), Icehouse Ventures is now raising their Seed Fund III, which focuses on Pre-Seed to Pre-Series A stage companies. 

Icehouse Ventures: Seed Fund III

With their portfolio of over 250 New Zealand startups and $270m assets under management, Icehouse Ventures is New Zealand’s most active early-stage investment firm.

Snowball Effect has partnered with Icehouse Ventures as they complete their final close for their third seed fund - giving Kiwi investors a simple way to gain access and exposure to a portfolio of NZ’s early stage startups with global opportunities.

Icehouse Ventures by the Numbers*

World Class Venture is Born in New Zealand

Visionary founders around the world- and at all times- are building solutions, platforms, and products that will define the world we live in for generations to come.

They're creating new markets, solving existential global issues, creating the technology for us to become an interplanetary species, and building innovative solutions which will radically disrupt incumbents. The value being created is immense.

Many of these founders and their companies are in New Zealand.

Over the past five years dozens of New Zealand startups have grown into $100m+ and $1b+ businesses. These include Sharesies, Halter, and First AML who we backed when they first started. A few have sold or IPO'd and a number are still operating privately.

No matter their journey, all of them are contributing to breeding the next generation of founders. Indeed the founders of Halter and Partly worked at Rocket Lab and the founders of Sharesies at Xero. The founders of Avertana and Mint were early employees at deep tech unicorn Lanzatech. Nearly half of the startups we have funded are led by either second time founders or were key members of other startups.

The next generation is poised to be the largest, boldest, and most experienced New Zealand's ever seen. They will also be the most sought-after. As one of New Zealand's oldest, largest, and most-active seed stage investors, Icehouse Ventures will be a key player in investing in and supporting the most promising entrepreneurs from the most promising generation.

IV Seed Fund III is your opportunity to join us as we invest in 30-40 startups over the next three to four years.

The minimum investment in IV Seed Fund III is NZD $50k, to be drawn down at 25% p.a. between the close of the Snowball Effect offer, and February 2025: 

e.g. For an investment of $50k, $12.5k would be drawn at the close of this offer, another $12.5k in Feb 2023, $12.5k in Feb 2024 and the remaining $12.5k in Feb 2025. 

IV Seed Fund III

Stage: Pre-Seed to Pre-Series A
Fund Size: 
$30m
Portfolio Size: 
Up to 40 companies
Investment Period: 
Five years

  • Our objective is to be the earliest investor in New Zealand's most promising technology startups.
  • We are industry agnostic and will invest predominately in software, hardware, agtech, deep tech, medtech and fintech.
  • Our ESG policy precludes investments in companies that can profit from environmental or social harm.
  • We will typically invest at valuations between $1m - $25m*.
  • We will lead rounds and co-invest with other credible lead investors.
  • Target ownership in each round: 5-15%.
  • Up to 50% of the fund will be reserved for follow on investment into a subset of the most promising portfolio companies.
  • Up to 20% of the fund can be deployed into one company over successive rounds.

*Investment amount per stage will vary based on access, round size and the manager's discretion.

Key Details

  • $30m fund
  • Portfolio of up to 40 companies
  • Five year investment period
  • Investing in exceptional early stage New Zealand startups with global opportunities
  • 2% management fee p/a for the first five years only
  • 20% carried interest over the preferred return hurdle
  • Preferred return hurdle: 5% compounding annually
  • Limited Partnership structure

Investment via Snowball Effect

Investing in IV Seed Fund III provides a simple way for wholesale investors to gain exposure to expansion stage New Zealand venture opportunities. All investments will be held within Snowball Nominees, and will be available to view in Orchestra.

Because the fund is a Limited Partnership, only wholesale investors are able to invest. 

The minimum investment in IV Seed Fund III is NZD $50k, to be drawn down at 25% p.a. between the close of the Snowball Effect offer, and February 2025.  

e.g. For an investment of $50k, $12.5k would be drawn at the close of this offer, another $12.5k in Feb 2023, $12.5k in Feb 2024 and the remaining $12.5k in Feb 2025. 

Next Steps

Please register your investment interest below if you would like to receive further information and gain early access to the offer when it launches.

If you have any questions feel free to get in touch with Simeon Burnett at [email protected]


New Zealand globe, with Snowball logo

About Snowball Effect

Snowball Effect is a New Zealand-based online investing marketplace, that enables New Zealand companies to offer shares to members of the public. Snowball Effect was founded in 2012 and launched in August 2014, after being one of the first to acquire an equity crowdfunding license from the New Zealand Financial Markets Authority (FMA). Over NZ$140 million has been raised on the platform.