Investor faq

MOST FREQUENT QUESTIONS AND ANSWERS

General

  • CAN I SELL OR TRANSFER MY TOKENS?

    Yes, the platform provides a feature that enables sale or transfer of tokens, but only after the initial lock-up period expires. The feature is currently not active as the platform will need to either enter into a partnership with a Security Token Exchange (STE) or develop one of its own to enable secondary trading of tokens. The lock-up period will be issuer-specific and will be included in the terms of the offering. After the expiration of the lock-up period, you are free to trade the tokens on an exchange (where the tokens will be listed).

  • WHAT HAPPENS IF THE PLATFORM WINDS UP AFTER I HAVE BEEN ALLOCATED TOKENS OF AN ISSUER’S OFFERING?

    As all tokens issued on the platform are digital representations of the concerned issuer, the cancelling of the tokens held by investors shall have no effect on the legal status of the investor being a shareholder (of the concerned issuer). Prior to winding down operations, Bambucorn shall verify that the issuer’s register of shareholders verifies the capitalization table generated by the system on the platform.

  • WILL I HAVE VOTING POWER IN RESPECT OF THE SHARES I HOLD?

    All rights associated with the ownership of the underlying shares will be retained by the token holder. So, if your ISA grants you voting power, you will have it.

  • WHICH EXCHANGE WILL THE TOKENS BE TRADED ON? IS IT A REGULATED EXCHANGE?

    The modus operandi with respect to trading of tokens on an exchange shall be determined in the coming months. Registered investors shall be informed of the developments with respect to the Exchange.

     

  • WHAT ARE THE TAX IMPLICATIONS OF INVESTING IN A START-UP?

    We are not tax advisors. We would encourage you to talk to a tax advisor before making an investment.

     

  • WHAT MEASURES HAS BAMBUCORN PUT IN PLACE FOR THE SECURITY OF IT SYSTEMS AND DATA PROTECTION?

    Please refer to the relevant sections of the Privacy and Security Policy.

  • HOW WILL BAMBUCORN DEAL WITH OVERDUE PAYMENTS OR DEFAULT BY AN ISSUER?

    Bambucorn Ltd shall not assume any liability on behalf of the Issuer. In the event the Issuer defaults, or has outstanding payments to make, please contact the Issuer directly. Please refer to the corresponding Investment Subscription Agreement (ISA) signed with the Issuer in question.

  • WHAT ARE THE BENEFITS OF TOKENIZATION?

    Tokenization (on the platform) is the process of digitally representing all securities offered in the form of tokens. The advantages of tokenization include:

    • It enhances the liquidity of the investment by providing investors the opportunity to exit through a secondary market. Investors, however, need to be aware that ultimately their ability to exit will be driven by the supply-demand dynamics of the specific tokens (shares) they hold.
    • It provides a Price-Discovery mechanism.
  • WHAT ARE THE ARRANGEMENTS FOR ANY CLIENT ASSETS CONTROLLED BY BAMBUCORN?

    All Client Money deposited with the Platform shall be held in a Client Money Account with a Regulated Financial Institution and shall be subject to the Client Money Provisions of the DFSA Rulebook.

    Tokens on the platform shall represent Shares (as defined in the DFSA Rulebook) issued by the Issuer. The names of all tokenholders shall be entered into the register of shareholders with the relevant authority.

  • HOW ARE THE PRICE OF THE TOKENS SET?

    The price of the tokens will be a function of market forces (i.e. supply and demand). The exchange on which the tokens will eventually be listed may appoint a market-maker for the securities (for liquidity).

    Note: Bambucorn is to determine the STE on which tokens issued on the platform will be listed.

  • WHAT STEPS WILL BAMBUCORN TAKE IF THERE IS A MATERIAL CHANGE IN AN ISSUER'S CIRCUMSTANCE?

    All material changes in an Issuer’s circumstance shall be listed in the section titled “Material Changes to Issuers” under the “What’s New?” section. 

  • WHAT ARE THE MAJOR RISKS ASSOCIATED WITH EQUITY CROWD FUNDING?

    • Businesses may fail and subsequently investors can lose their investment or may experience delays in being paid.
    • Investors may not be able to sell their investment when they want to, or at all (even if a secondary trading facility exists).
    • Investors’ current stake in the business may be diluted in future rounds of fundraising.
    • The use of borrowed money on the platform carries greater risk. For example, even if the investment declines in value, the investor will still need to meet their repayment obligations.
  • HOW DOES THE PLATFORM FUNCTION?

    • Bambucorn uses a data-driven approach to curate startups and list their offerings on our platform. Once offerings on the Platform are listed, Members can make use of numerous experts assembled by Bambucorn to conduct their due diligence in the most effective manner possible.
    • Members who have completed all checks (including KYC) are able to invest in these offerings listed, by signing the respective Investment Subscription Agreement (ISA). Once the Member signs the ISA, he/she is required to transfer the committed amount to the Client Money Account (details about the Client Money Account will be made available after the signing of the ISA).
    • Upon the offering closing successfully, investors shall become shareholders of the issuer company. The shares held by the investor shall be represented on the platform in the form of tokens and shall reside in the investor’s wallet. Tokens can be used to demonstrate proof of ownership.
    • Issuers will be responsible for providing updates to token holders (investors).

Compliance

  • CAN I BE AN INVESTOR IN ANY OF THE OFFERINGS LISTED ON BAMBUCORN?

    Bambucorn believes in the process of democratizing access to venture capital investments. Hence, the platform is open to all kinds of investors. However, in order to invest, investors must be able to self-certify themselves as Professional or Retail Investors and successfully comply with the Know Your Customer (KYC) and Anti-Money Laundering (AML) processes of Bambucorn.

     

  • WHAT IS A PROFESSIONAL CLIENT?

    For the criteria to be classified as a Professional Client please click here.

  • CAN I CHANGE MY INVESTOR STATUS?

    Investors may change their accreditation status via the My Profile section of the website within the account setup gate.

  • I AM NEITHER A U.A.E RESIDENT NOR A U.A.E. CITIZEN. CAN I STILL INVEST THROUGH BAMBUCORN? WHAT IS THE ELIGIBILITY CRITERIA FOR INVESTORS THROUGH THE PLATFORM?

    Bambucorn has obtained an Innovation Testing License by the DFSA. Due to the restrictions that shall be placed during the Testing Phase, Bambucorn can only accept investments from U.A.E. citizens or residents. However, upon the completion of the Testing Phase and subject to the restrictions on the Testing License being removed by the DFSA, we will be able to on board citizens and/or residents from a majority of countries across the globe. 

  • WHAT STEPS WILL BAMBUCORN TAKE TO ENSURE THAT THE PLATFORM IS NOT USED FOR MONEY-LAUNDERING ACTIVITIES?

    Bambucorn Ltd. has created its own AML program to ensure the Platform is not used for illicit activities including money laundering activities. Some of the highlights of the AML program include but are not limited to:

    • Assigning appropriate risk scores to all potential Clients and undertaking appropriate Customer Due Diligence (CDD)
    • Monitoring transactions on a frequent basis
    • Appointing a Compliance Officer/MLRO to oversee the compliance function
  • WHAT IS A RETAIL CLIENT?

    A Retail Client (defined as Retail Client in the Conduct of Business (COB) Module in the DFSA Rulebook) is an individual or entity that does not meet the definition of a Professional Client.

    Note: An individual or an entity meeting the definition of a Professional Client has the right to be classified as a Retail Client. 

  • WHAT DOCUMENTS WOULD BAMBUCORN ACCEPT AS A PROOF OF ADDRESS?

    Documents accepted as proof of business address are as follows:

    • Utility company bills not older than three months. Accepted documents are:
      • a) Electricity bill
      • b) Water bill
      • c) Landline telephone bill (but not a bill for mobile phone services)
    • Bank Statement not older than three months. The bank balance and transaction details may be blacked out. However, the following must appear on the statement and be clearly legible:
      • a) Full name of the account holder/client
      • b) Address of the account holder/client
      • c) Account number
      • d) Issue date
    • Mortgage statement issued by a regulated financial institution in the past twelve months that must meet the following criteria:
      • a) Statement to have been issued in the past twelve months
      • b) Full name, address and account number of the account holder/client must be clearly visible.

Investments

  • WHAT WILL I BE CHARGED?

    At the time of making an investment, investors aren’t charged any fees, however investors may be charged pursuant to any other agreements they may have entered into through the platform. If the offering does not close successfully, investors will be refunded the money net of transaction charges. Bambucorn will inform investors ahead of time on its charges for facilitating secondary trade of tokens.

  • WHAT HAPPENS IF AN OFFERING DOES NOT RAISE ITS MINIMUM TARGET LEVEL OF FUNDING?

    A determination of the status of the offering shall be made at the end of the cooling-off period. In the event an offering does not raise its minimum target level of funding, all monies deposited in the Client Money Account, with respect to the particular offering shall be refunded to the Investors.

  • HOW MUCH CAN I INVEST THROUGH BAMBUCORN (IN AGGREGATE)?

    Investors may be subject to different limits based on their accreditation (Professional or Retail). While Professional Investors do not have any regulatory limits imposed on them, Retail Investors can invest up to USD 50K (in aggregate) in a calendar year through Bambucorn.

  • HOW MUCH CAN I INVEST THROUGH BAMBUCORN (PER OFFERING)?

    This amount will differ depending on the offer you plan to invest in. Please refer to the specifics of the given offer.

  • WHAT SECTORS / TYPES OF START-UPS WILL BE AVAILABLE FOR INVESTING INTO?

    Bambucorn is sector agnostic. However, we do have a preference for scalable technology-based businesses which are in their early stage of operations.

  • HOW WOULD I BE ABLE TO KEEP TRACK OF THE PROGRESS OF THE UNDERLYING INVESTMENTS ON A REGULAR BASIS?

    Issuers of all successful offerings listed on the platform will be obligated to provide the platform a copy of its financials on an annual basis and summary financials on a quarterly basis. Investors (tokenholders) shall receive these documents via e-mail.

  • WHAT IS THE LEGAL STRUCTURE OF INVESTMENTS LISTED IN THE PLATFORM?

    The legal structure of investments listed in the platform shall be described in detail in the specific investment profile.

  • WHEN CAN I WITHDRAW A COMMITMENT TO PROVIDE FUNDING AND HOW DO I DO SO?

    Investors who have subscribed to the offering can withdraw their commitment without any penalty and without giving any reason until the end of the cooling-off period. The cooling-off period is a period of 48 hours starting at the end of the commitment period.

    An investor can withdraw his commitment by notifying the platform at snavani@bambucorn.com

    Investors shall be required to specify the following details:

    • The offering they would like to withdraw their commitment from
    • The amount they intend to withdraw
    • The Platform may require the investor to confirm a few details before affecting the withdrawal of the said investor’s commitment.
  • CAN I CANCEL AN INVESTMENT I HAD PREVIOUSLY COMMITTED TO?

    You’re free to cancel an investment up to 48 hours after the offering has closed. An investor may withdraw his/her investment without any penalty and without giving a reason.

  • WHAT RIGHTS AND OBLIGATIONS SHALL BE GRANTED BY TOKENS?

    A token shall represent a Share (as defined in the DFSA Rulebook) of the issuer company and the name of the tokenholder shall be entered into the Issuer’s register of shareholders. As the token represents a Share the rights and obligations granted to the tokenholder shall depend on the law (such as companies law) of the jurisdiction the Issuer is incorporated in.