Adam Hunt, managing director of new crowdfunding venture Liftoff. Photo / Supplied
Adam Hunt, managing director of new crowdfunding venture Liftoff. Photo / Supplied
A new equity crowdfunding option with a particular focus on regional businesses has launched, with a Bay of Plenty ecotourism company as the first cab off the rank.
Liftoff is the latest platform to be licensed by the Financial Markets Authority since the Government legalised crowdfunding in April last year.Its first campaign, for Rainforest Experiences New Zealand, would be the first New Zealand ecotourism venture to be crowdfunded, said Liftoff managing director Adam Hunt.
"The angle Liftoff is taking is we want to focus on ordinary New Zealand businesses. We're not going to do anything too exotic or complicated," he said.
"We want to democratise access to funds for businesses. We have the sense that people assume crowdfunding is just for breweries or tech start-ups.
"We thought that might be a bit off-putting to people who had a really good straightforward business idea, especially if they are not in the main centres. An area we really want to focus on is regional New Zealand business."
Liftoff has four directors. Mr Hunt came to Liftoff with 25 years' experience in technology and operations. Shareholders Association founder and former chairman Bruce Sheppard, a well-known investor activist, is a director and co-founder of Auckland accountancy firm Gilligan Sheppard.
Tim Fitzgerald has 30 years' experience in financial markets, including serving as treasurer of HSBC Bank NZ.
Andrew French is a former New Zealand Trade Commissioner to Korea and Far East Russia.
"Crowdfunding can suit businesses at any stage. It's not just about start-ups," said Mr Hunt.
Liftoff's first campaign seeks to raise a minimum of $600,000 up to $1.25 million for a new business that builds on an existing eco-walks tourism operation that has been running for 21 years in the Whirinaki Rainforest, Te Urewera, close to key tourist centres Rotorua and Taupo.
Rainforest Experiences NZ will take up the rights to operate a range of tourism activities and market them in the international and domestic markets, based on securing the necessary long-term leases and resource consents for use of Department of Conservation (DoC) land. According to the business model, break-even could be achieved at 40 12-client eco-walks a year.
The crowdfunding option is structured with investors buying minimum equity parcels of $500, made up of $250 in ordinary shares and $250 in non-voting preference shares. The campaign had clear milestones, which included obtaining the new lease from DoC, said Mr Hunt.
Rainforest Experiences NZ director Butch Bradley said: "We intend to also work in partnership with DoC to provide support for efforts to protect New Zealand's biodiversity, by adding people power to pest destruction, endangered species monitoring and other initiatives."
