AngelEquity offers a unique form of equity crowdfunding.
The equity crowdfunding regulations introduced in 2014 have made it possible for anyone (the “crowd”) to invest in private, early stage companies not listed on the stock market, in exchange for shares in that company.
Companies which are at the beginning of their lifecycle use equity crowdfunding to finance their development and growth.
This form of investing opportunity has been made possible by the internet. New access and transparency have enabled investors to search for and receive information about deals via online equity crowdfunding websites like AngelEquity.
A different kind of equity for a different kind of crowd
AngelEquity’s crowdfunding is different in two important ways:
- The kinds of investment opportunities
Only deals from formal angel networks with rigorous assessment and preparation and the personal investment of angel investors are listed on AngelEquity. Each deal is presented with a well-reasoned valuation, protective terms and post investment management.
- The kinds of investors
Only registered angels and wholesale investors can invest in AngelEquity deals.
Why Take This Approach?
AngelEquity is a platform designed to leverage the formal angel investment industry in New Zealand. It delivers registered investors who want to explore this risky asset class a way to invest in the same deals that these, experienced business angel investors do.
AngelEquity’s deals come from angel networks where the members have invested significant time and effort to create the best possible circumstances for the company to succeed. Often, they have also attracted co-investment from New Zealand’s government through NZVIF’s Seed Co-Investment Fund.
As such, while AngelEquity is an equity crowd-funding vehicle, it’s service is aimed squarely at individuals who can afford larger investment amounts which match the investments already made. It is designed for investors that understand the risks and can afford to build a significant diversified portfolio to mitigate them.
Risk Warning – The law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decision. By giving a Wholesale Investor Certificate as a requirement of joining AngelEquity, investors acknowledge that, the usual rules do not apply to offers of financial products (including debt securities, equity securities and derivatives) made via AngelEquity. As a result, investors may not receive a complete and balanced set of information and will have fewer legal protections for these investments.
It is the responsibility of the investor to understand these consequences, ask questions, read all documents carefully, and seek independent financial advice before committing.