Equitise launches new crowdfunding platform raising money for Tourism Radio

Friday 30th January 2015

Equitise, the country’s latest equity crowdfunding platform, has launched today offering kiwis the chance to buy shares in digital travel guide company, Tourism Radio NZ.

Some $200,000 to $350,000 is being sought from the public and the company has already raised $45,000 in pre-committed capital including $20,000 from serial technology entrepreneur Aaron Ridgeway and $25,000 from Tourism Radio NZ chief executive and co-founder Hayden Braddock.

Equitise has been licenced by the Financial Markets Authority, the third behind PledgeMe and Snowball Effect, to offer equity crowdfunding services in New Zealand. Co-founders Jonny Wilkinson and Chris Gilbert originally planned to launch in Australia first but won’t do so there until about mid-year as they await legislation to allow crowdfunding across the Tasman. Listed investment firm Australasian Wealth Investments has a 9.5 percent stake in Equitise.

Wilkinson said Equitise's point of difference is that it will operate trans-Tasman and has a blended model to help businesses raise money, by selling equity to the public and by also introducing trans-Tasman angel investors.

“It’s been a lot of hard work but it’s finally come to fruition,” he said.

Equitise charges up to 7.5 percent of the total capital raised, above the 6 percent charged by its rivals. Wilkinson said the company absorbs some legal costs in that charge and wanted to be seen as an investment focused platform which would justify the extra fee.

“We want to be like the NZX for private capital raising, focussed on the return on investment for investors.”

Founded in 2008, Tourism Radio NZ delivers geo-specific digital travel guide commentaries to tourists through mobile devices in motor homes and rental cars via a nationwide network of distribution partners. When the vehicle nears one of over 2,200 points of interest across New Zealand, the commentary alerts tourists. It had revenue of $900,000 in 2014 from selling location specific advertising embedded in the guide content.

Braddock said the money raised would be used to expand its local salesforce, invest in new technology and expand into Australia. Tourism Radio NZ is owned by Braddock, salesman Daryl De Lautour and Swiss based Dioptas, from which the company has the exclusive New Zealand and Australian licences for the technology IP. If the full amount is raised, Dioptas will own 36.5 percent, the public 25.4 percent, Braddock 23.5 percent, De Lautour 13.1 percent and Ridgeway 1.5 percent.

The offer will remain open for 90 days.

Equitise plans to raise a further $1 million next week for cystic fibrosis focused biotech firm, Breathe Easy. It is developing a range of cystic fibrosis specific formulations and medical devices to help patients with the illness. The company’s Citramel, developed by Professor Bob Elliott, co-founder of ASX listed Living Cell Technology, is currently in patient trials.

BusinessDesk.co.nz

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