Punakaiki reaches $2 million max on Snowball Effect
Lance Wiggs’ Punakaiki Fund has reached its $2 million target on equity crowdfunding site Snowball Effect - although it has been indicated the offer will be extended.
Funds will be used to invest in new companies as well as companies Punakaiki has already invested in. Over the next year, it is estimated between 20-50% of the investments made by Punakaiki Fund will be in these ‘follow on’ type investment rounds, although this may be subject to change.
Last week it was announced that Punakaiki had invested in Auckland intellectual property firm EverEdgeIP, now owning a little under 5%, with Mr Wiggs also appointed as a director.
In 2013, Punakaiki’s attempt to raise between $5-20 million in a public offering failed but since April last year the fund has raised about $4 million from just over 90 private investors.
The fund has invested that money into 10 technology and design-based companies. It has invested $1.71 million into Mindscape, Influx, Timely, and Vibe Communications, which had combined 2015 revenues of $7.17 million. It has invested $2.26 million into Melon Health, Weirdly, Boardingware, Onceit, RedSeed and Revert, which had combined 2015 revenues of $6.73 million.
Mr Wiggs wants to list Punakaiki on the stock exchange within the next two to four years and intends to raise additional capital once or twice a year. There will be no dividends paid for the foreseeable future.
Under equity crowdfunding laws, companies are limited to raising no more than $2 million from the public in any 12-month period. However, Mr Wiggs says some of the eligible Snowball investors may move over to the private offer, freeing up capacity on the equity crowdfund raise.