Equity Crowdfunding and Peer-to-Peer Lending in New Zealand: The First Year

JASSA The Finsia Journal of Applied Finance (2015). Issue 2, pp 5-10

8 Pages Posted: 18 Apr 2015 Last revised: 13 Apr 2017

Date Written: April 16, 2015

Abstract

Raising funds from public investors through equity crowdfunding and peer-to-peer lending was legalised in New Zealand in April 2014. The following year saw the registration of six new financial service providers offering financial crowdfunding services, mainly in equity crowdfunding. With only one peer-to-peer lender operating there is still a lot of room for that market to develop, in particular through the introduction of alternative pricing models, larger loans and business lending. While there are five registered platforms equity crowdfunding is currently dominated by two, The Snowball Effect and Pledgeme, each serving distinct market segments. However, if Australia adopts similar rules it will allow crowdfunding platforms targeting both markets an opportunity to take advantage of a larger crowd, changing the competitive environment.

Keywords: Crowdfunding, Peer-to-peer lending, New Zealand

JEL Classification: G32, G38

Suggested Citation

Murray, James S., Equity Crowdfunding and Peer-to-Peer Lending in New Zealand: The First Year (April 16, 2015). JASSA The Finsia Journal of Applied Finance (2015). Issue 2, pp 5-10, Available at SSRN: https://ssrn.com/abstract=2595354 or http://dx.doi.org/10.2139/ssrn.2595354

James S. Murray (Contact Author)

Ara Institute of Canterbury ( email )

130 Madras Street
Christchurch, 8011
New Zealand

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