Update 10:45am: Media and advertising startup Snakk Media confirms it's listing on the New Zealand Alternative Exchange (NZAX), after applying to the exchange in November last year.
The NZAX is a stock market run by the NZX for small to medium fast-growing businesses, and includes companies like Burger Fuel.
Derek Handley, who co-founded Snakk in 2010, says listing the company gives shareholders the option to buy and sell shares, making Snakk more attractive for future investors.
He adds that with the success of listed Kiwi tech companies like Xero, the stock exchange path needs to be explored by more New Zealand startups looking to grow outside of traditional venture capital funding.
"What we are doing shows a path where you can list and raise small amounts of capital over time... More people in the country need to investigate the option because once you get past angel funding here there's not many VC funding options left in New Zealand," says Handley.
"Underscoring all of this is an appetite in the New Zealand market to value high-tech high-growth companies."
Snakk is headquartered in New Zealand, but operates mostly in Australia. The company provides technology connecting brands to consumers through targetted mobile advertising and media campaigns for social networks and apps. Snakk has worked with Pepsi, Contiki, MTV and Intel.
According to Snakk, it posted an unaudited revenue of $1.2 million for the six months up to the end of September. This in addition to more than $750,000 of capital raised by Snakk late last year.
This year will be focused on growth in the Australian market, following a strong financial performance in 2012, says Handley.
“We’re expanding the team in New Zealand and Australia and continuing to invest for growth. Highlights from the six-month 2012 reporting period have included facilitating more than 200 campaigns for Australia’s top ten media agencies, adding new technologies to our expanding portfolio of partnerships, and opening a new sales office in Melbourne," he says.
Handley says the expected influx of capital will go towards hiring more people to Snakk's 16-strong team, the majority of which will be sales related.
Snakk has brought onto its board two new members to accompany Handley. Tim Alpe, co-founder of Jucy rentals and an Ernst & Young Entrepreneur of the Year in 2010; and Michelle Kong, general manager of market strategy at Telecom.
"I have been involved with a number of exciting fast growing companies and I’m really looking forward to having an impact on Snakk, which is in such a hot sector and with significant growth prospects ahead," says Alpe.
Idealog has been covering the most interesting people, businesses and issues from the fields of innovation, design, technology and urban development for over 12 years. And we're asking for your support so we can keep telling those stories, inspire more entrepreneurs to start their own businesses and keep pushing New Zealand forward. Give over $5 a month and you will not only be supporting New Zealand innovation, but you’ll also receive a print subscription and a copy of the new book by David Downs and Dr. Michelle Dickinson, No. 8 Recharged (while stocks last).
Idealog is part of ICG. We work with clients like Woolworths New Zealand, All Good, Huffer, Liquorland, Resene, Citta Design, TVNZ, Spark and FCB on their event activations, in-store, in-office or out-of-home signage, content creation and vehicle wraps.