SuchCrowd has set a new precedent for investment documentation in New Zealand: a Lightning Lab Christchurch Alumni company, SuchCrowd is the first company to gain approval for match funding from NZVIF using KISS documentation.
‘KISS documentation is widely used in the USA and Southeast Asia and is particularly good for early stage start ups’ explains CEO Abbe Hyde. It’s a simple 10 page document that avoids limiting the future options of the company.
SuchCrowd were guided through the process by Simmonds Stewart, experienced lawyers in the start up scene. ‘Simmonds Stewart were awesome at navigating the landmines that came up’ Hyde states ‘flexible, agile and fast - perfect qualities for start up lawyers’.
The money raised is being used to add additional staff to the fast growing start up that is making waves in the performing arts industry, helping performers to put on live events through their novel event platform that allows crowds to demand the events they want to see. ‘We take the financial risk out of planning events by applying a crowdsourcing mechanism to ticket sales’ explains Hyde ‘it enables performing artists to offer their events nationally and internationally and lets fans have a voice in the ones they want to see’.
The company's investment was led by AngelHQ, the Wellington Angel group and were oversubscribed, raising just over $150,000. Investor, Brian Steele is joining the team as Chairperson on the board. ‘Investment for SuchCrowd has provided the opportunity to add experience and networks to the team’ explains Hyde ‘Steele stood out as a perfect fit for SuchCrowd with his passion for the arts combined with a wealth of business experience, we love his ability to help artists apply a business mindset to their projects’.
Hyde accepts that using new and untested documentation did add a layer of complexity to closing the investment round. ‘It was a bit of back and forth’ Hyde notes ‘We enjoyed working with NZVIF in coming to an agreement that worked’. Hyde also recognises Lightning Lab programme manager Geoff Brash as being instrumental in the process.
SuchCrowd is currently doing the majority of their business in New Zealand and are prepping for their Australian platform launch. The company is actively working on new offerings to help performing artists with events.