Crowdfunding platform Equitise is celebrating the success of its second capital raising campaign after Retirement Income Group hit its minimum target of $250,000 this morning.
The offer, which launched on May 13 and closes later today, had raised $297,500 for the annuities provider by 10.30am, giving the new investors a 3.3 per stake in the business.
Annuities involve converting a lump-sum, such as a KiwiSaver withdrawal, into regular fixed-income payments.
Retirement Income is targeting the growing cohort of New Zealanders who are reaching 65 and withdrawing their KiwiSaver funds.
The company, co-founded by former AXA New Zealand and Accident Compensation Corporation chief executive Ralph Stuart, had already raised $3.8 million from professional investors and its founding shareholders prior to the Equitise campaign.
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Equitise managing director Jonny Wilkinson said it was great to get the platform's second campaign over the line.
"It's a good feeling," he said. "We turned this one around reasonably quickly."
Equitise, which launched in January, closed its first campaign earlier this month after raising $211,000 for Tourism Radio NZ.
Equity crowdfunding, which became possible in New Zealand last year through a once-in-a-generation overhaul of securities legislation, allows companies to issue shares to the public through online platforms.
More than $7 million has been raised by three local equity crowd-funding providers - Snowball Effect, PledgeMe and Equitise - since August.
Wilkinson said Equitise may launch its third campaign within the next month.
Retirement Income's retail arm is anticipating a net loss in this financial year of $745,821 from revenue of $422,401.
The company - which is targeting KiwiSaver providers, employer-based pension schemes and retail investors - expects to begin breaking even in the 2017 financial year.