Snowball rolls on with $5 million injection
Snowball Financial has received a $5 million cash injection from venture capitalist group, Equity Partners.
The funds will be used for further expansion of Snowball in the areas of IT, personnel and marketing.
Equity Partners will join original backers Flinders Capital and the Snowball management team as stakeholders in the recently formed online financial services provider.
Snowball managing director Tony McDonald did not reveal the size of the stakes of the parties now investing in Snowball, but says the existing Snowball management has "a significant stake of around 50 per cent" which is the largest stake in Snowball.
According to McDonald, Equity Partner's assistance has come at a time when venture capitalists have become more selective and cautious with their investments in response to fallout from the "tech wreck" which began in April last year.
"This investment by Equity Partners is a ringing endorsement of Snowball's business model," McDonald says.
Snowball was founded by ex Sealcorp executives Phil Kelly, Bruce Pellow, Terry Williams and George Haramis in December 1999 with a goal to give investors access to a range of products, mostly savings and superannuation related, via an interactive website.
The group's flagship product is the Snowball Super Account. Other products planned for roll out in the second quarter will be a wrap account and a series of online financial tools.
Snowball will also be conducting its business outside the cyber world through two subsidiaries now operating from under Snowball's roof, CIS Financial Services and the CWM accounting practice.
McDonald says CIS represents Snowball's "face to face" financial planning business, while CWM will provide accounting and superannuation services to a number of clients.
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