My most frequently asked questions from 100 companies looking to raise capital
- Written by Emily Heazlewood
- Published on
At Snowball Effect we don't just crowdfund - around 70% of what we do is private raises with our wholesale investor network.
Have any more questions? Email me [email protected] or feel free to lock in a quick chat if you have a potential capital raise in mind.
Our most common raise is a private wholesale raise within our high net worths, usually for $1.5m-$10m. Secondly, we have our public rises that are an excellent way to attract many new advocates and marketing for brands. Finally, our top-up raises are becoming increasingly popular for companies who have a good portion of their raise already committed and are looking to close out the round.
They are our high net worths, known as accredited investors within our network. You may choose only to make your offer to them, or for regulatory reasons only be able to make your offer to them (for example if you are raising with a convertible note). If you are undertaking a public offer, we aim to get a good portion of your raise placed with more experienced investors before making the offer public. This gives you confidence that your raise is likely to be well received by a wider audience.
We raise for a broad range of companies from food and beverage to software, hardware, fin-tech, agriculture, health and wellbeing and the list goes on. Check out a few of our companies here. We usually look for businesses with around 800k+ revenue but are always open to companies with strong growth that may fall outside of this.
Don't stress! This is what a nominee is for so you will only see one shareholding and can have Snowball Effect look after every investor inside the nominee. You can also use Orchestra as a nice simple way to manage your cap table, as well as any ESOP that you might have in place.
With any raise that we do, we target getting a good group of experienced cornerstone investors committed before taking the offer wider. This helps validate the terms of the offer.
We work with many companies for months before we even start to capital raise, usually providing valuable feedback and introductions so its never to early to get a conversation started.
How long would it take to raise capital? Typically 3 months depending on whether you need additional strategy and preparation from our specialist team, e.g. rebranding, financial modelling, articulating an export plan, etc.
We earn a success fee - this depends on the size of the raise, and the scope of work required for the capital raise, but this is typically 7.5%. We have strategic, accounting, legal and business experts on the team, so we highly recommend our team develop your IM which we charge an upfront fee for depending on the level of work required. Depending on the use of additional services, there may be small recurring costs for things such as the use of a nominee vehicle and the Orchestra platform.
With a network of over 45,000 investors and a 98% success rate, we are confident if we take your company through a raise we will be successful in raising the capital you require.
Have any more questions? Email me [email protected] or feel free to lock in a quick chat if you have a potential capital raise in mind.
