NZ agribusiness gets dedicated crowdfunding platform

Richard Allen
Francis Reid
Simeon Burnett

New Zealand agribusinesses looking for investors will be able to turn to crowdfunding once new legislation comes into effect in April.

The agribusiness-focused crowdfunding platform, Snowball Effect, is the first of its kind in New Zealand, and intends to give small to medium sized businesses access through their website to funding from investors looking for equity.

Snowball Effect's launch coincides with the new regulations and is the brainchild of Fonterra Cooperative Group executives Richard Allen, Simeon Burnett and Francis Reid. They appointed 26-year-old Josh Daniell to be the company's business development manager to oversee daily operations.

An alternative to listing on the stock exchange, the crowd funding platform is a cheap way for agribusiness entrepreneurs to raise funds from the public. New legislation, the Financial Markets Conduct Act, allows for businesses to crowdfund and offer equity, where previously raising money from the public with the promise of a return would have required the issuing of a prospectus and other costs associated.

The act represents a total rewrite of financial market conduct rules, simultaneously seeking to tighten investor protections while removing barriers and costs of raising capital for businesses seeking to grow.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7473 0.0025 0.34%
AUD 0.9386 -0.0020 -0.21%
EUR 0.6579 0.0026 0.40%
GBP 0.4913 0.0008 0.16%
HKD 5.7928 0.0187 0.32%
JPY 88.0030 0.2470 0.28%

Commods

Commodity Price Change Time
Gold Index 1292.1 12.740 2015-01-27T00:
Oil Brent 50.7 1.360 2015-01-27T00:
Oil Nymex 46.2 1.080 2015-01-27T00:
Silver Index 18.1 0.100 2015-01-27T00:

Indices

Symbol Open High Last %
NZX 50 5737.7 5794.8 5737.7 0.99%
NASDAQ 4698.2 4721.9 4771.8 -1.89%
DAX 10719.4 10728.8 10628.6 -0.08%
DJI 17638.5 17638.5 17678.7 -1.65%
FTSE 6811.6 6863.0 6811.6 -0.15%
HKSE 24800.0 24983.9 24807.3 0.22%
NI225 17615.9 17850.6 17768.3 0.15%