How much can my company raise through Snowball Effect?

The equity crowdfunding regulations allow for each company to raise up to $2m from retail investors in any 12 month period. The key point of these regulations is to remove the requirement for a regulated “product disclosure statement” when offering shares to retail investors. This change drastically reduced the cost of making a public offer, and therefore opens up your offer to the wider equity capital market.

A company can raise more than $2m if the balance comes from “wholesale investors”. For example Squirrel Group raised over $3.4m through Snowball Effect, with up to $2m allocated to retail investors and the rest from wholesale investors.