Investment bank/asset manager Armillary Private Capital will launch one of New Zealand’s first equity crowdfunding platforms – Armillary.
New laws allowing the equity-based model in NZ came into effect earlier this month. Armillary have struck a joint-venture with the UK’s very own Crowdcube to deliver the new platform. Crowdcube already operates in Sweden, and is eyeing launches in Spain, Brazil, Dubai, Poland, Italy and New Zealand. Their international pedigree and substantial experience made them an obvious partner for Armillary.
David Wallace, Director of the Kiwi platform, believes the launch to be a natural extension of Armillary Private Capital’s current offering:
“We all know there’s a gap for businesses valued under $10 million. They need to raise equity for growth but aren’t big enough to absorb the costs of a public offer.
“Crowdfunding opens up new options for SME owners to raise capital. It’s more efficient, cost effective and it’s something we’re taking very seriously to our clients. We have four excellent capital raising prospects that we’re talking to about Crowdcube so the appetite for this form of equity raising is definitely there from the demand-side.”
Armillary Private Capital’s substantial track record of investing in businesses should stand the new platform in good stead within the crowdfunding arena. Adding Crowdcube’s network and significant experience in equity crowdfunding to the mix has the potential of creating a very powerful model.
Mr. Wallace continued:
“We’ve seen overseas that a lot of consumer-facing companies use their loyal followers to commit a few dollars here and there. Already there are a few crowd-funding start-ups positioning themselves that way for the New Zealand market.
“But we’ve been assisting private businesses to solve their capital needs for a long time. We know what a credible proposition is and what the key factors are. We have a very well-established track record and we’ll be bringing those same disciplines to bear in the crowd-funding market.”
Wallace indicated that Armillary has already been talking to four “growth” firms that are looking to raise between $100,000 and $2m. The new platform will hope to receive its license in roughly two months.
Join AltFi for its third annual Alternative Income Forum, exploring closed-ended funds (investment trusts) specialising in generating an income using alternative assets such as specialist finance, P2P lending, direct lending, asset leasing and more. Hear from the leading investors and fund managers in this rapidly growing market.