NZ ICT sector to benefit from new funding option

New Zealand ICT entrepreneurs and small and medium-sized business owners will soon be able to access funding in exchange for equity for the first time through revolutionary online equity crowdfunding platform, Snowball Effect.

Equity crowdfunding provides entrepreneurs and small business owners with an opportunity to pitch their business ideas and growth plans to the public via a website portal, expanding the pool of potential investors while reducing the cost and complexity associated with raising funds.

Snowball Effect’s portal – – is set to launch in April.

ICT business owners will be able to seek funding for everything from start-up concepts, to investment in ICT technology and equipment, new product development or market expansion.

Snowball Effect’s company Directors, Simeon Burnett, Francis Reid and Richard Allen, have over 25 years combined experience in international business and trade, corporate finance, strategy and valuation. Former corporate lawyer, Josh Daniell has been appointed Business Development Manager and will manage operations day-to-day.

Burnett says Snowball Effect will bring together every day Kiwi investors with great Kiwi businesses wanting funding that doesn’t involve increased debt, a costly Initial Public Offering or ceding control of their company by relying on a limited number and class of investors.

“Our vision is a New Zealand economy fuelled by emerging businesses backed by everyday Kiwi investors,” he says.

“The country’s economic engine room is small to medium-sized enterprises (SME’s) and there are thousands of them with big vision who can’t take the next step on the growth ladder because the banks won’t lend, and other sources of capital don’t fit or are cost prohibitive.

“There are also thousands of New Zealanders with innovative ideas that can’t get them off the ground because raising start-up capital is typically limited to loans from friends and family.

“On the other side, tens of thousands of proud Kiwi investors or would-be investors would love to take a stake in one of the most dynamic sectors in the economy, but are currently unable to do so, particularly if they only have a small amount of money that they’re willing to invest.”

Another of Snowball Effect’s founding Directors, Richard Allen says Snowball Effect has the potential to transform the investment and SME sectors.

“While we will be complementary to other funding channels, we believe the concept democratises investment by giving everyday people greater choice about how and where they invest,” says Allen.

“It also democratises entrepreneurism and business growth by giving company owners more options. With more options comes greater control.”

Allen says they will work with businesses to ensure they’re clearly articulating the investor value proposition to maximise their chances of successfully raising capital, while minimising the cost and complexity of the fundraising process.

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