Story image

Punakaiki first fund to do NZ equity crowdfunding; raises $660,000 on debut

16 Jun 2015

High profile tech investor Lance Wiggs' Punakaiki Fund launched the first equity crowdfunding campaign for a private equity fund in New Zealand on the Snowball Effect platform.

The offer has already surpassed its $200,000 minimum target to reach $660,000 and is limited to the $2 million maximum that can legally be raised through equity crowdfunding offers. If the entire $2 million is raised, it will equate to 25.7 percent of the fund, which invests in early-stage, fast-growing New Zealand firms.

The offer is being made at the same time as the fund runs separate offers to existing shareholders and to other sophisticated investors. The offers all close on June 30. The Punakaiki offer on Snowball is for a minimum 100 shares at $14.50 per share which is the same as its offer to existing shareholders, while the offer to sophisticated investors has a minimum threshold of $21,750 for 1,500 shares.

Wiggs said whatever is raised can be invested into its 10 existing high-growth companies and acquiring others. Still, he’s contained his expectations of what may be achieved in the fundraising bids following a failed initial public offering in 2013 where it raised only $3.3 million of a hoped-for $50 million and returned the money.

“That was disappointing so I don’t have a number in my head for this one,” he said.

Punakaiki eventually launched as a private fund in April last year after raising $4.2 million in three separate placements.

Snowball Effect said it had no concerns about promoting a private fund and pointed out crowdfunding for the film The Patriarch, which raised $488,000, was a worldwide first for a movie. The rationale for doing that sort of thing is to give investors more diversity in their options, it said.

The Punakaiki offer is based on a director’s valuation of the fund being worth $5.78 million. The pricing of the share offer takes into account the dilutionary affect of $1.78 million worth of share options that existing investors can choose to take up by June 30 and a further $1.29 million worth in September.

It’s managed by Lance Wiggs Capital Management, which is owned by Wiggs and Chris Humphreys.

The plan is to eventually conduct another IPO and sharemarket listing within the next three to five years.

Management fees for the fund are equivalent to 2 percent of its net asset value per annum, lowering to 1.5 percent once the fund’s value rises to over $50 million, which is in line with other private equity funds but well above the likes of unit trusts.  There’s also a performance fee of 20 percent for a rise in the fund’s market value, providing that increase is above 10 percent per annum.  

The fund plans to appoint an independent director before the end of September.

Web design programmers do an about face – again!
Google is aggressively pushing speed in the mobile environment as a critical ranking factor, and many eb design teams struggling to reach 80%+ speed scores on Google speed tests with gorgeous – but heavy - WordPress templates and themes.
Digital spending to hit US$1.2 trillion by 2022
A recent study by Zinnov shows that IoT spend reached US$201 billion in 2018 while outsourcing service providers generated $40 billion in revenue.
'Iwi Algorithm' can grow Aotearoa's mana
Ngāti Whātua Ōrākei innovation officer Te Aroha Grace says AI can help to combine the values from different cultures to help grow Aotearoa’s mana and brand – and AI is not just for commercial gain.
Dropbox brings in-country document hosting to A/NZ & Japan
Dropbox Business users in New Zealand, Australia, and Japan will be able to store their Dropbox files in-country, beginning in the second half of 2019.
Why 'right to repair' legislation could be a new lease on life for broken devices
“These companies are profiting at the expense of our environment and our pocketbooks as we become a throw-away society that discards over 6 million tonnes of electronics every year.”
Kiwis know security is important, but they're not doing much about it
Only 49% of respondents use antivirus software and even fewer – just 19% -  change their passwords regularly.
Instagram: The next big thing in online shopping?
This week Instagram announced a new feature called checkout, which allows users to buy products they find on Instagram.
Apple's AirPods now come with 'Hey Siri' functionality
The new AirPods come with a standard case or a Wireless Charging Case that holds additional charges for more than 24 hours of listening time.