Today in crowdfunding news: Cabinet has approved regulations for crowdfunding and peer-to-peer lending, and a new platform, Fundakiwi.com, is launching with a special competition for Kiwi entrepreneurs.
Commerce minister Craig Foss today announced that there will be no investor caps for equity crowdfunding, other than the previously announced $2 million cap that a company can raise through crowdfunding each year.
Under the new regulations, offers engaging in equity crowdfunding and peer-to-peer lending will no longer need to prepare a prospectus or an investment statement before fundraising from the public.
Equity crowdfunding gives everyday investors the opportunity to invest in businesses previously only available to venture capital firms and high net-worth individuals.
The grand prize includes free office space from ColabNZ and a professional campaign video by Auckland videographer Joey De Guzman, plus the setup of a crowdfunding campaign by Multitude and prototyping services by Dunedin-based 3D printing company, Transcendent. Fundakiwi will also provide the winning entrepreneurs a complete set of financial forecasts for their business courtesy of EdgeFF.
The idea is to give them a head start on their crowdfunding efforts, with the top five campaigns getting the first listings on Fundakiwi.
“This competition offers entrepreneurs the chance to both get their idea validated by potential customers and to get visibility for their startup in front of potential investors,” said Clive Fernandes, Crowdfunding NZ managing director.
"More valuable than the $10,000 worth of prizes offered for the winning campaign, is the first-mover exposure to potential investors and the opportunity to be one of the first companies in New Zealand to be crowdfunded."
The competition is open for entries from now until March 25.