Ex-Hyperfactory's Handley to list latest start-up
Derek Handley's Snakk Media is to list on the NZX alternative market and attempt a capital raising next year of less than $10 million.
The tech entrepreneur sold mobile advertising creative company The Hyperfactory to US media giant Meredith in 2010.
Snakk, a mobile advertising network company, was launched in Australia in 2010 by Mr Handley and Australian Andrew Jacobs.
Mr Handley told NBR ONLINE Snakk has applied for compliance listing approval on the NZAX and it hopes to list in the next few months.
Capital raising of less than $10 million should happen early next year.
"The approach we're taking as a business is to raise smaller amounts of capital more regularly than the approach of raising large amounts of capital in one hit.
"I think generally with tech companies it's become a trend to raise just enough for the next 12 to 18 months, build shareholder value, get the valuation up and continuing to raise as you need it.
"The trend of raising $10 million or $20 million to fund your first year or two is starting to disappear."
He says the NZX alternative market needed more small, high-growth stocks.
New Zealand 'too small'
Growth plans include acquiring other companies and investigating an offshore move next year, possibly to south-east Asia and India.
The company has no plans to employ sales staff in New Zealand. "It's too small for us to look at at the moment. To achieve the growth rates that we want we need to look at sizeable markets."
The Australian mobile ad market was worth $A15 million last year.
Snakk's annual accounts show the company's revenue to March 31, 2012, was $2 million, up from $560,000 the previous year. The 2012 loss, before tax, was $615,000.
The company has 12 staff in Australia and five in New Zealand, including newly-appointed technology and partners manager Max Flanigan, formerly of APN News & Media and The Hyperfactory.