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Audio content company Tourism Radio NZ seeks crowd money using newly-launched Equitise platform

Tourism Radio New Zealand (Tourism Radio) is looking to raise between $200,000 to $350,000, divesting 23.3% of the company, valued at $1.30 million post-funding. The money will be raised using newly-launched equity crowdfunding platform Equitise.

The minimum investment is $500, at $1 per share, which gives shareholders economic rights, but no voting rights.

Tourism Radio was founded in 2008, by CEO Hayden Braddock. It generates revenue from advertisers marketing their services, embedded in audio content which are location-based, delivered across mobile devices and apps.

Equitise’s launch comes after Snowball Effect, PledgeMe, and Crowdcube the latter has the Financial Market Authority’s approval but has yet to kick off locally.

“We’re proud to be launching Equitise by offering New Zealanders the opportunity to invest in a mobile media technology market leader,” says Jonny Wilkinson, Equitise co-founder. 

“The business uses patented technology to deliver location-based audio content across mobile devices and apps. The revenue model is proven and the company is ready to scale.  We believe it’s a great opportunity both for established business investors and people wanting to try investing in private business for the first time,” he adds.

Hardware samples

Tourism Radio’s app, Auckland map


Tourism Radio’s currently has revenues of about $950,000 (2014). It hopes to use the crowd-sourced funds to lift revenue growth which it forecasts will compound by 50% year-on-year for the next few years, providing what the company terms as “solid returns” for investors.

Serial technology-entrepreneur Aaron Ridgway has already given the company his thumbs up, leading with his $45,000 pre-committed investment in Tourism Radio. The offer runs for 89 days.

“I’ve invested in Tourism Radio because I believe a cash injection will enable the business to scale relatively easily.

“ The growth opportunities here and in Australia look good to me and I like backing high-integrity business owners who are ready to expand, as opposed to more speculative start up business that are higher risk – it’s more satisfying, more useful and more fun than investing in property,”  Ridgway says.

Financial disclosures show a forecast revenue of $1.43 million for 2015, $2.1 million for 2016, $3.21 million in 2017, and $4.81 million in 2018. Profits (before interest and tax) are forecast at $395,200 in 2016, $910,000 in 2017, and $1.75 million in 2018.

Funds raised will be use to expand into Australia, hire new staff, develop content, acquire technology to deliver its service, and upgrade its website among others.

If the business does not raise the total funds required, the business will use cash flow (instead of raised capital from the Equitise round) to cover aspects of the technology development, it says.

Existing shareholders

Dioptas Holding AG owns 50% of the share capital of Tourism Radio, with 50% voting rights. The other major shareholders are Hayden Braddock (30%) and Daryl de lautour (20%), their voting rights are 30% and 20% respectively.

More about Tourism Radio

Tourism Radio delivers geo-location specific Digital Travel Guide commentary to tourists through mobile devices in motor homes and rental cars, via a nationwide network of distribution partners.  When the vehicle approaches one of over 2,200 points of interest across New Zealand, including landmarks and hidden gems, the commentary alerts the tourists.  

Tourism contributes just over 7% of GDP for New Zealand and generates nearly 8.3% of total employment.  With 2.6 million international visitors annually, total tourism expenditure reached $23.8 billion for the year ended March 2014.

Loves peanut sauce, tennis, taichi, stockmarkets, and cool entrepreneurs – not necessarily in that order. In her previous reincarnations, she was an intranet worker bee at Mercer HR Consulting, a Reuters worker ant, and a NZ Herald mule.

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