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Contents

• Introduction to equity crowdfunding

• Suitable companies and investors • How the process works

• Discussion

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Equity

Offer shares to the public

Rewards

Pre-sales +

donations

Debt

Loans from the

crowd

3 main types of crowdfunding

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The crowdfunding market is growing rapidly worldwide

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New regulatory framework

• Kiwi companies can raise funds by offering shares to the New Zealand public without a costly and time-consuming prospectus

• Up to $2 million per company per year – designed for small businesses

• Companies can access a large investor pool, including customers, users, supporters

• FMA licenses and regulates providers, but each provider will have different model and processes

• NZ is one of the first countries to adopt specific regulation for equity crowdfunding

The Financial Markets Conduct Act and Regulations

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Snowball Effect customers – companies

Companies

Key Benefits• Money. Access to large investor pool

• Marketing. Wide promotion of your business through marketing / PR

• The crowd. Advocates for your business

• Credibility. Greater traction than private offer

• Efficiency. Clear, transparent, and efficient funding process

Example – Renaissance BrewingCrowdfunding offer

• Raised 700k (12.28% of company)• Went to their customers and other supporters first, then to the wider

public

Crowdfunding goals• Funds for growth• Exposure through offer• Harness the crowd

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Snowball Effect customers – investors

Investors

Key Benefits• Access. Deal flow and first-time access to asset class for

public

• Credibility. Greater confidence than private offers

• Simplicity. Consistent information and standard process

• No fees. Easy participation

• Standard protections. No need to negotiate

Investor 1

Snowball Effect

community

• 25 – 65 years old• Disposable

income• Interested in

investing in high risk / high reward assets

Investor 2

Snowball Effect

community

• Retired and wealthy• Highly experienced

and interested in staying involved with NZ business

• Altruistic bent, but still wants to see ROI

Investor 4

Existing audience of company

• Proximity to a certain business, owners, or product

• Not solely motivated by ROI, wants to see that particular business succeed

Investor 3

Snowball Effect

community

• Professional investor

• Invests for ROI• Wants deal flow

and consistent investment information

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PeopleBoard and Management Team

Advisory Group