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Snowball Effect to launch in April in New Zealand

Photo credit; David Pacey on Flickr

Photo credit; David Pacey on Flickr

New Zealand crowdfunding startup The Snowball Effect is gaining momentum and is ready to launch this April.

The company, founded by Simeon Burnett, Richard Allen and Francis Reid of Auckland is an equity crowdfunding platform, meaning investors give a business a small amount of money in return for shares in the company.

It will be legal in New Zealand from April when a change to the Financial Markets Conduct Act means anyone can raise up to $2 million without needing a formal prospectus.

The trio, along with full-time employee Josh Daniell, have been researching and building the company, with interested investors and businesses lined up for the launch.

The Snowball Effect hopes to have “couple of thousand” investors and fund 10 businesses by the year’s end.

Burnett says the crowdfunding platform will help businesses gain easier access to capital, including from New Zealanders living overseas.

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This entry was posted on Thursday, March 6th, 2014 at 8:58 am and is filed under E-mail & the internet, New Zealand, new zealand business, New Zealand government, social media, social networking, Success story. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

One Response to “Snowball Effect to launch in April in New Zealand”

  1. Crowdfunding will be much easier in New Zealand as of April 1, paving the way for platforms like Snowball Effect. | OPMC Limited says:
    March 13, 2014 at 10:57 am

    […] Burnett a director of soon-to-launch equity crowd funding provider Snowball Effect welcomed the new rules and said the decision not to cap how much investors can put in was good […]