$150m Capital Raise Milestone for Snowball Effect

  • Written by Snowball Effect
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We're delighted to share that over NZ$150m of capital has been invested via our platform. This is an exciting milestone to have reached in a year that has seen significant global economic shifts. However, amongst the uncertainty, it's encouraging to see many investors continue to diversify their portfolios through private equity investing.

Our co-founder and CEO, Simeon Burnett, says he's excited to see Snowball Effect reach this milestone. "We're proud of having facilitated more than $150m of investments into a wide variety of growing companies and funds while also seeing investors earn excellent returns from some of those investments. We're looking forward to continuing to build on this."

Key stats

  • NZ$150m capital raised
  • 138 successful raises for 96 companies and funds
  • 24 companies have completed multiple raises
  • 96% success rate
  • 45,000 investors
  • Over 12,300 investments made to date
  • 68 Public raises
  • 76 Wholesale raises
  • $3.5m, the largest single investment

Recent successful capital raises

Since Snowball Effect launched in 2014, we've worked alongside various innovative companies to help them realise their growth plans. A few key recent capital raises have included:

ArchiPro

Online architectural and design platform, ArchiPro raised $12m in growth funds through three private raises. Capital raised through our platform has enabled ArchiPro to expand its platform and team and bring on board a Chairman and Director. Since then, ArchiPro has gone on to raise $35m in a Series A round led by New York based investment firm Tiger Global to help drive offshore expansion.

Projectworks

Wellington-based software as a service (SaaS) platform Projectworks raised $3.5m in February 2022. The funds raised have enabled Projectworks to build out the platform's technical functionality and invest further in sales, marketing and customer support.

Case Study: Learn more about the Projectworks capital raise.

Behemoth

Behemoth is a leading independent New Zealand craft brewery with a nationally recognised brand and award-winning brewery. They have released more than 500 unique beers, won over 150 awards, and produced more than 4 million litres of beer since inception. Behemoth has raised nearly $5m with Snowball Effect across two raises between 2020 and 2022.

PurePods

PurePods is an award-winning, five-star eco-tourism business providing a luxurious accommodation experience in stunning New Zealand landscapes. PurePods recently raised $3m through Snowball Effect to enable it to become the "must do" accommodation experience in Aotearoa.

Karma Drinks

Kiwi beverage company Karma Drinks produces a range of organic sodas such as Lemmy and Karma Cola. Karma Drinks raised over $4m in growth funds, which has enabled them to continue to expand the business in New Zealand and overseas.

UBCO

Tauranga-based electric adventure vehicle (EAV) firm UBCO has raised over $8.5m in growth funds via Snowball Effect. Since their 2021 capital raise, UBCO has seen an almost 3x sales increase, signed on more than 20 dealers in the US, and exceeded NZ$1m in revenue per month for the first three months of the new financial year (FY23).

Hello Period

Hello Period is a globally recognised New Zealand-made sustainable period product company that aims to lead the growing high-quality period care industry. The company raised $2.5m via Snowball Effect to accelerate its global growth plans and drive accessibility for all people with periods.

Capital raised by industry:

Invest in New Zealand businesses

Are you interested in learning more about investment opportunities through Snowball Effect? Check out our current public investment opportunities.

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Financial Market Conduct Regulations – Warning statement about equity crowdfunding
  • Equity crowdfunding is risky.
  • Issuers (companies issuing shares) using Snowball Effect’s facility include new or rapidly growing ventures. Investment in these types of businesses is very speculative and carries high risks.
  • You may lose your entire investment, and must be in a position to bear this risk without undue hardship.
  • New Zealand law normally requires people who offer financial products to give information to investors before they invest.
  • This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to offers by issuers using Snowball Effect to raise funds. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.
  • Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.
Please read on
Snowball Effect warning – Please understand the characteristics of this new marketplace

Snowball Effect is proud to provide access to early stage equity investments for everyday Kiwis. We’re passionate about improving financial literacy in New Zealand and increasing investment into wealth-creating assets.

However it’s crucial for you to understand the characteristics of this new marketplace.

Companies making offers through Snowball Effect will range from very early stage businesses with little more than an idea, to more established businesses that may already be profitable. The risk of investing in a business tends to decrease as a business develops and matures. For very early stage businesses, history suggests that perhaps only one or two out of ten will make significant returns for investors. Despite the hopes and belief of the promoters, some will putter along without much happening for a long time. In others the total investment could be lost.

Investing in early stage businesses is risky. Overall, investor returns tend to be greater than the amounts invested, but you might not be one of the winners. Some of the other key risks include:

  • Loss of capital – You could lose your entire investment.
  • Illiquidity – There is no guarantee that you will be able to sell your shares when you want to, or at all. Currently, there is no recognised secondary market for trading shares in companies funded by equity crowdfunding. Buying and selling among existing shareholders is generally lawful, but some companies may not facilitate it. We expect that open market trading facilities will eventually be authorised, but that is not certain at this time.
  • Lack of returns – Few early stage unlisted businesses pay dividends. They tend to reinvest what they earn in the growth or survival of the business.
  • Dilution – Companies may need more funding to grow or to survive. If they issue further shares, your share of the company will reduce unless you put up your proportion of the new investment. That reduction is called dilution.
  • Material events – Early stage businesses are often small and have narrowly focused offerings. This can increase the vulnerability of the business to internal and external threats, and make it harder to absorb material events such as loss of key staff and customers.
  • Lack of control – As a minority shareholder, you may have little influence on how the company develops. Companies are ruled by simple majority for most decisions. For example, you will not determine who the directors are unless the majority of shareholders who vote on an issue agree with you.

To decrease exposure to the risks, these types of investments should only be made as part of a diversified portfolio. Spread your risks. Only invest money that you can afford to lose.

Remember that you will never get enough information to know in advance how things will turn out. No one, even the directors of a company, can know in advance with 100% certainty just what will make a business fly, and what will bring it down. Even in large public offerings the information available is never enough to be sure how the future will turn out.

Please seek independent advice if you don’t fully understand the characteristics of this marketplace or the information in an offer.

Snowball Effect (FSP350046) is licensed as an equity crowdfunding platform by the New Zealand Financial Markets Authority (FMA)
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