A new online platform will launch next year to help small and medium-sized businesses raise money from members of the public, in exchange for a share in the company.
The crowd-funding website, www.snowballeffect.co.nz, is set to launch in April once the relevant provisions in the Financial Markets Conduct Act take effect.
A Snowball Effect director, Simeon Burnett, says that the platform will allow businesses to raise money without costly initial public offerings, and there will be a broader opportunity for members of the public to invest in start-ups.
Mr Burnett says Snowball Effect has already heard from other companies interested in the platform.
