New Zealand-based online lender Squirrel has closed an NZD $3.4m equity crowdfunding offer on Snowball Effect.
Squirrel Group – an Auckland-based mortgage broker and peer-to-peer lender – has announced the closure of a NZD $3.4m crowdfunding round on Snowball effect, a New Zealand-based equity crowdfunding platform. The minimum target for the investment round – the amount required for the offer to be deemed successful – was NZD $1m and the maximum was NZD $4.97m. The company offered a minimum of 7.90% in equity and a maximum of 17.90%, and ended up giving away slightly less than 17.90%, with NZD $287,100 left unsubscribed.
Founded in 2008, Squirrel Group claims to help Kiwis make better financial decisions. The company is actively involved in peer-to-peer lending – through its platform Squirrel Money – launched in November last year, and in mortgages, via Squirrel Mortgages, the company’s new mortgage broking business.
As previously reported, the company launched a $5m private equity crowdfunding offer on Snowball Effect, at a pre-money valuation of $22.9 million, in March this year. On that occasion, the company revealed that it had attracted $4 million of pre-registered interest from within its customer base – more than enough to fill the $2 million slice of the offer that was available to retail investors. Wholesale investors were targeted for the remaining $3m.
The investment round – originally launched as a private campaign – was made available to the general public on Snowball effect for a 30-day period, which ended yesterday. The capital raised will reportedly be employed to boost both the peer-to-peer and the broking businesses.