How does crowdfunding work?
Why should I invest in a Pitch?
How long does the Entrepreneur have to raise the Target amount?
What happens once the Target amount is raised?
What happens if the Target amount is not raised?
Is there a maximum or minimum Target amount?
How do I make a complaint?
How do I invest?
Who can invest?
If I invest, when am I charged?
If funding fails, do investors pay anything?
How does investing actually work?
Do you publicly publish my investment amount?
What information does the entrepreneur receive?
How do I know the entrepreneur has a genuine business idea?
I am not in NZ, can I still invest?
Do I get notified when a pitch successfully reaches its Target?
Can I withdraw/cancel my investment?
Can I pay by cheque, credit card or cash?
What is a reward?
How do I create a reward?
What can be offered as a reward?
How do I redeem my reward?
What if the entrepreneur needs more information (ie T-Shirt sizes etc) for the reward?
Who is responsible for ensuring rewards are delivered?
ENTREPRENEURS AND PITCHES
Who can make a pitch?
Do pitches require an investment target and end date?
If the Pitch is successfully funded, how do entrepreneurs receive their money?
What fees do Crowdsphere charge?
Is there a maximum investment amount for a pitch?
What information and documentation do I need to have to successfully apply and create a Pitch?
Can I create more than one pitch simultaneously?
Is there any type of business that cannot be pitched?
Can pitches be edited after launch?
Can pitches raise more money than the Target?
Can Entrepreneurs increase/decrease the Target amount?
Can Entrepreneurs increase/decrease the Equity offered?
Can an entrepreneur end a Pitch early?
Can I invest in my own Pitch?
If I find investment from another source, can I add it to my total?
What are Pitch Updates?
How will investors know that there is an update?
Do you have any tips on producing a pitch video?
Can pitches be shared on social networks?
Each Entrepreneur creates a Pitch explaining their business and what they aim to achieve. The Pitch will include 2 key numbers
- The Target: the total amount of money they wish to raise
- The equity offered: the amount and class of shares they are offering in return for raising the Target
Investors then pledge money towards the Pitches that they want to invest in, and over a period of time the total raised accumulates towards meeting the target.
There are a number of reasons you may want to invest in a Pitch:
- To make a return on your investment
- To get a unique Reward for your investment (see Rewards below)
- To help a friend launch their business
- To support a business or industry you believe in
- To help small New Zealand businesses
- For the fun of it
Each Pitch includes a closing date to raise the Target amount which we recommend is not more than a couple of months. From experience, the optimal length of time for an offer is six weeks. Pitches can be extended.
Once the Target is met, the paperwork is completed and the money is transferred to the Entrepreneur’s business bank account. At the same time each investor receives a certificate or registry notice confirming their ownership in the Entrepreneurs business.
If the Target amount is not raised within the time period then the Pitch will be closed and no investment capital will be taken from Investors’ accounts.
We suggest an entrepreneur should raise at least $100,000. While the maximum amount that can be raised is $2m the larger the target the more work will be needed to be successful. We recommend setting a lower target to have a successful pitch and then accepting over-subscription.
While Crowdsphere will make every effort to get things right, problems may sometimes occur. We have in place a complaints procedure that is intended to resolve any problem quickly and fairly with the objective of solving the problem to the client’s satisfaction, as set out in the steps listed below.
Should you have any complaints or queries about the services provided by Crowdsphere you should contact Crowdsphere’s Compliance Officer on 04 974 9269 or by writing to Crowdsphere Limited, PO Box 3156, Wellington 6140. If the Compliance Officer is unable to resolve the problem you can contact the directors.
Alternatively you may address complaints to Crowdsphere’s disputes resolution service, Financial Services Complaints Limited on 0800 347 257 or by email to [email protected]
Once you have found a Pitch that takes your fancy simply enter the amount of money you wish to invest in the box that says “Enter Amount” and click on the “Invest now” button.
You will be then be taken to an Investment form where you will provide bank account details. These details will be used for a direct debit if the offer that you have invested in meets its target.
Anyone who is over 18 years old can invest through Crowdsphere. However, given the risky nature of early-stage equity investment, we recommend that investors be sufficiently sophisticated with diversified portfolios.
Your bank account will be debited once you have confirmed your investment after the Pitch has closed.
No. If the Pitch does not reach the Target then no amount is payable.
Put simply, you invest money into a business and get a share of that company and possibly extra goodies in return.
No. We display a list of Pitches that you have invested in on your public profile but we do not disclose how much money you have invested in each Pitch.
The Entrepreneur will receive the minimum information necessary to deal with you as an Investor – your name, email address and the amount you have invested.
Whilst Crowdsphere does perform some initial vetting of each Entrepreneur, their business and idea, Investors should call upon their own judgement, knowledge and research along with that of the Crowd (other Investors within Crowdsphere) to decide whether the Entrepreneur is worthy of their investment.
Information about our vetting process is contained in our Disclosure Statement which can be found here – Crowdsphere Disclosure Statement – August 2016
Yes you can.
Yes, when a Pitch reaches its Target all Investors will receive an email to that effect.
In some limited circumstances an Investor may be allowed to withdraw their investment in a Pitch. Please send us an email if you wish to do this.
No, we only accept payment by direct debit. In some circumstances we will allow investors to direct credit their funds.
A reward is a gift of goods or service, usually related to your business, that you provide to an Investor as an incentive to invest in your Pitch.
You can specify the rewards that you want to include in your offer when you submit your initial pitch for approval. Once your pitch has been approved, you can create your project on the website.
There is a section within this submission called “Levels” in which you can specify rewards.
For instance, you could give away one of your products or you could give a discount on future purchases of your products or services.
Once the Target has been met and the investment has been made in the Entrepreneur’s company it is the responsibility of the Entrepreneur to ensure that every Investor receives their appropriate reward.
The Entrepreneur will contact the Investors by email if any further information is required.
Entrepreneurs take responsibility for ensuring all Investors receive their reward.
ENTREPRENEURS AND PITCHES
Anyone who is a NZ resident, is over 18 years old and has or can create a NZ based Limited Company can become an Entrepreneur on Crowdsphere.
Entrepreneurs must set an investment Target which cannot be changed once their Pitch is published.
The deadline is automatically set at six weeks from the date that the Pitch is published, unless specified otherwise. The offer period can be extended.
Once the Target is met and the legal paperwork is completed Crowdsphere will transfer the money into the Entrepreneurs bank account.
When we accept a pitch to go on Crowdsphere we charge a $5,000 + GST application fee. This fee is charged with your application in respect of the support provided by Crowdsphere, including assistance with your pitch materials, marketing plan and administrative services such as the completion of the issue of shares in an Investee following the successful fundraising of a Pitch. This fee is refundable if we determine not to accept your application for use of our services.
Once an Entrepreneur has successfully raised their target amount, Crowdsphere will deduct a success fee of 6% of the total amount funded.
The Entrepreneur also pays a processing fee for the cost of debiting bank accounts and credit cards. This amount is about 0.5% of the amount raised.
This model of charging means we only charge Entrepreneurs if they are successful in raising their funding through Crowdsphere.
There is no maximum amount that any Investor can invest.
A Pitch is your way of selling your idea and your business to potential investors. It’s your showcase and you need to do everything you can to convince potential investors that your idea is the best thing since sliced bread.
So, the more relevant information and documentation you have to support your Pitch the easier it will be to gain support and investment.
The minimum you will need is a business plan and associated financial forecasts. Beyond that information such as Intellectual Property (patents, trademarks, etc.), designs, legal memorandums and even relevant pictures (of products for instance) will all help you build a convincing pitch.
No, each Entrepreneur may only have one active Pitch at any time.
Pretty much anything that is legal can be pitched on Crowdsphere but each Pitch is thoroughly vetted by the Crowdsphere team and we reserve the right to refuse any Pitch application that we don’t feel fitting for Crowdsphere.
Yes pitches can be edited and updated at any time.
If the Pitch includes accepting subscriptions over and above the Target amount, more money can be raised but only up to the disclosed over-subscription amounts level.
No, once the Pitch is live on our web site the Target amount cannot be changed.
Once the Pitch is live the Entrepreneur may only increase the amount of equity offered, they cannot ever decrease it.
No, a Pitch ends only when the Target amount is met or the End Date is reached.
Yes, please notify the Crowdsphere team and we can add it to your total.
A Pitch Update is a way for the Entrepreneur to provide regular updates on what is happening with their business
Investors will automatically be sent an email notifying them that the Pitch has an update.
Yes you can see them here – Crowdsphere Tips For Preparing Your Pitch Video
Absolutely and we encourage you to do that! There are quick links for Twitter, Facebook and LinkedIn on every Pitch page.
There will be soon.
Yes and you can see us at
Please email us at [email protected].
Put simply, your equity crowdfunding campaign has a greater chance of success with Crowdsphere than any other platform.
Exceptional expertise: Crowdsphere is the only New Zealand equity crowdfunding platform that is directly affiliated with an investment bank (Armillary Private Capital). Together, the Armillary team has decades of experience in capital raising for New Zealand businesses. You can therefore be confident that you are getting first class advice when it comes to taking this important step for your business.
Wide network of prospective investors: Crowdsphere has a large network of private equity investors in New Zealand and globally which can be drawn upon to invest in Crowdsphere crowdfunding campaigns, when appropriate.
We’ll ask you hard questions: This may not sound entirely positive but by asking you hard questions at the beginning you’ll be better prepared. It also keeps the quality of pitches on the site high meaning happy investors.
You get more than money: Many of our Investors are keen to take either advisory or non-Exec roles. You can take advantage of a highly skilled and motivated network.
Ready To Start?
If you’d like to know more about how you can use Crowdsphere to raise finance, please call us on 04 974 9269 or email [email protected]
Alternatively, if you’re ready to start your pitch application, click the button below.