A Kiwi tech start up plans to raise $500,000 through equity crowdfunding to continue to grow its social marketplace app. Based on a geo-advertising business model, SellShed is free mobile app which matches buyers and sellers in local communities for online trading. Since its launch in October, more than 13,000 users have signed up to the app. The company has so far raised $300,000 in private capital fundraising initiatives and is now raising further investment to continue its national expansion
plan.
SellShed CEO, Peter Howell, said crowdfunding fits with the ethos of the company’s brand.
He expects younger investors in the 30 to 40 year old age bracket to be interested in the offer. “We’re expecting good uptake from people who have a reasonable investment income, and also a good understanding of online technology and its applications,”Howell said.
“We see this approach as a potential funding model for a lot of future online or app-based businesses in New Zealand, as it’s an ideal way to tap into investors who want to be involved in a project like this but may not want to go through traditional investment channels to do it.”
SellShed’s revenue model includes two streams – geo-advertising, which is based on the location of the user; and subscriptions, which will see businesses pay a monthly fee to cover listings.
The business will expand internationally in future, says Howell, although the initial focus is on growing the business within New Zealand.
“Because of the nature of the mobile platform there are no geographical boundaries,” he explains. “We already have users in New Zealand, Australia, UK, USA, Italy and Uruguay, although 99 per cent of the users currently registered are Kiwis.”
