Equitise launches with travel guide offering

Some $200,000 to $350,000 is being sought from the public. Photo / Thinkstock

Equitise, the country's latest equity-crowdfunding platform, launched yesterday offering Kiwis the chance to buy shares in digital travel guide company, Tourism Radio NZ.

Some $200,000 to $350,000 is being sought from the public. The company has already raised $45,000 in capital including $20,000 from serial technology entrepreneur Aaron Ridgeway and $25,000 from Tourism Radio NZ chief executive and co-founder Hayden Braddock.

Equitise has been licensed by the Financial Markets Authority - the third behind PledgeMe and Snowball Effect - to offer equity crowdfunding services in New Zealand.

Co-founders Jonny Wilkinson and Chris Gilbert originally planned to launch in Australia first but won't do so there until about mid-year as they await legislation to allow crowdfunding. Listed investment firm Australasian Wealth Investments has a 9.5 per cent stake in Equitise.

Wilkinson said Equitise's point of difference is that it will operate trans-tasman and has a blended model to help businesses raise money - by selling equity to the public and by also introducing transtasman angel investors.

"It's been a lot of hard work but it's finally come to fruition," he said.

Equitise charges up to 7.5 per cent of the total capital raised, above the 6 per cent charged by its rivals. Wilkinson said the company absorbs some legal costs in that charge and wanted to be seen as an investment-focused platform which would justify the extra fee.

"We want to be like the NZX for private capital raising, focused on the return on investment for investors."

Founded in 2008, Tourism Radio NZ delivers digital travel guide commentaries to tourists through mobile devices in motor homes and rental cars via a nationwide network of distribution partners. When the vehicle nears one of more than 2200 points of interest, the commentary alerts tourists. It had revenue of $900,000 in 2014 from selling location-specific advertising embedded in the guide content.

Braddock said the money raised would be used to expand its local salesforce, invest in new technology and expand into Australia.

Tourism Radio NZ is owned by Braddock, salesman Daryl De Lautour and Swiss-based Dioptas.

Equitise plans to raise a further $1 million next week for cystic fibrosis-focused biotech firm, Breathe Easy.