Mount Maunganui start-up DROPIT raises $5 million in two months

DROPIT founders Brendan and Peter Howell at the Phoenix Suns opening NBA match. Photo / Supplied

Mount Maunganui start-up DROPIT has raised $5 million in just two months in its latest funding round.

DROPIT, a reverse auction app platform which counts down the price of an item to $0 in 60 seconds, was founded in 2015 by Bay of Plenty brothers Brendan Howell, 41, and Peter Howell, 37.

New investors in the tech company include a string of prominent Kiwi businesspeople and those from Enterprise Angels who together pledged a total of $1m.

Nineteen investors purchased ordinary shares in the company, each valued at a minimum investment of US$200,000 (NZ$285,000), DROPIT chief executive Peter Howell said. This included the New Zealand Venture Investment Fund (NZVIF) welcoming the firm to its $50 million Seed Co-investment Fund family.

"The last few months have proven very successful for DROPIT in terms of expanding further into the United States, signing with the NBA's Phoenix Suns and partnering with Daktronics, the world's leading manufacturer of electronic scoreboards and digital signage," Howell said.

"At the same time, the investment response back here has been overwhelming as word of DROPIT and its global sporting potential begins to build momentum."

The company, which specialises in fan engagement and live event entertainment, hopes to soon bring its technology back to New Zealand, Howell said.

Last year Angel networks and funds invested a record $69m into young New Zealand companies - a 13 per cent increase on the previous record set in 2015.

NZVIF chief executive Richard Dellabarca said DROPIT was a promising firm with excellent prospects for further expansion.

"DROPIT has developed a unique product offering with global applicability, while being initially focused on the large US market," Dellabarca said.

"While it is still a young company in the early stages, it has made great progress in terms of partnerships and developing opportunities, and we look forward to supporting their growth journey."

Howell said his company would use its latest capital to bolster staffing numbers in Mount Maunganui and the United States, taking its employee count to a total of 56. It currently has 15 employees - five in New Zealand and 10 in the US.

DROPIT recently moved its head office from San Francisco to Miami - the second most entrepreneurial city in the US - to focus on its expansion strategy.

It has a patent pending on its processes and technology to ensure it is fully protected from future competitors.