ISSUER FAQ

MOST FREQUENT QUESTIONS AND ANSWERS

General

  • What are the benefits of being crowd funded?

    As a start-up, we understand that fundraising is a tedious process for start-ups. By presenting your offering on Bambucorn, investors will be able to review your offering at their own convenience, while you are able to focus all your efforts on managing your start-up. 

  • Do I have to maintain a share register?

    Bambucorn will provide you with a capitalization table (“Cap Table”) based on subscriptions of investors. You will need to register the ownership of investors based on the cap table provided by Bambucorn. The decision to register the changes in ownership of the shares with the local authorities depends on the rules of the jurisdiction in which you are incorporated.

     

  • 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.

  • What is Bambucorn?

    Bambucorn, an equity crowdfunding platform regulated by the DFSA enables start-ups and SME's raise equity financing by issuing shares. 

  • What type of securities will I be able to offer on the platform?

    • Common Stock or Common Equity- Securities that represent equity interest in the company. Holders of these securities will receive no preferential rights with respect to liquidation proceeds and/or voting rights
    • Preferred Equity- Class of stock or securities that gives holders a higher priority to any distributions made by a company and/or voting rights

     

Compliance

  • Can my company be incorporated anywhere?

    Bambucorn can list start-ups on its platform from all over the globe.

     

  • What documents am I required to submit as part of the e-mail application process?

    As part of our due diligence process, we will require the following documents:

    • Certificate of Incorporation
    • Articles of Association (“AOA”) (optional)
    • Pitch-deck
    • Business plan/ Financial projections (optional)
    • Passport copy of founder(s)

    We may require additional documents as part of our due diligence process. A member of our team will reach out if this is the case. 

  • 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 are the documents (agreements, resolutions, etc.) I will need to sign? Can we have copies of them?

    An issuer can be expected to sign the following documents:

    1. Board Resolution
    2. ISA
    3. Platform Issuer Agreement
    • To issue uncertificated shares 
    • To establish the rules of transfer of the shares
    • To conduct an equity offering though Bambucorn’s platform

     

    Furthermore, an issuer is expected to produce the following documents (these are for the purposes of the offering and need not be signed):

    • Financial Model (Business Plan)
    • Pitch-Deck 

     

    Please note that the Board Resolution and the ISA need not be prepared prior to the e-mail application being submitted. 

Offering

  • What happens after my offering is over?

    After the offering is over, a decision is made on the status of the offering (success/ fail). If the offering is deemed a success, Bambucorn shall provide a capitalization table illustrating the number of shares and the percentage of ownership held by each investor. This table shall be based on the shares allocated to investors on the platform. You are expected to affect the necessary changes in your register of shareholders and upon doing so must provide a copy of the same to the platform. The platform, upon verifying the information provided shall release the subscription amount (net of fees and transaction charges) to your bank account.  

     

  • How long will the offering be open?

    The length of time an offering will be open for will be issuer specific. However, we expect that offerings on the platform will be open for up to a period of 90 days.

     

  • 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.

  • What type of start-ups are listed on Bambucorn?

    Currently, Bambucorn lists start-ups that are looking for pre-seed or seed funding. To be listed on Bambucorn, start-ups must have at least developed a Minimum Viable Product (“MVP”) or prototype. 

  • What happens if my round is oversubscribed?

    Oversubscriptions for offerings on the platform shall be allowed on a case by case basis. The exact method of allocation (if an offering can be oversubscribed to ) shall be decided mutually between the Platform and the Issuer and shall be disclosed to prospective investors. 

     

  • How do I get started?

    Founders are encouraged to send their application to snavani@bambucorn.com. If we believe that your start-up is what investors are looking for, a member of our team will contact you.   

  • How do I value my company?

    As part of the e-mail application process, you are asked to include desired terms of your offering. Our internal team will review your application and provide their inputs by accepting or proposing different terms for the proposed offering.

     

  • How much can I raise on the platform?

    Issuers listed on our platform will be allowed to raise up to USD 5 million in a calendar year.

  • How much will I be charged for being listed on Bambucorn?

    You will pay only if your offering closes successfully. Fees that will be applied if your offering is successful are:

    • $0 retainer
    • Cash fee on funds raised through the platform. This fee will vary from issuer to issuer and will be discussed on a case by case basis
    • Any additional legal fees (if incurred)