Investor faq

MOST FREQUENT QUESTIONS AND ANSWERS

General

  • 1.

    Why should I invest in startups/SMEs through Bambucorn?

    Bambucorn provides vetted investment opportunities in startups/SMEs that are inaccessible to the public-at-large. By investing in startups/SMEs through Bambucorn, investors can:

    • Diversify their portfolio, by taking exposure to emerging high-growth companies;
    • Invest smaller ticket sizes, possibly, as little as USD 500 in startups/SMEs;
    • Can avail of due diligence conducted by seasoned startup investors and ask seasoned startup investors/industry veterans any factual questions;
    • Invest through a regulated platform. Bambucorn is regulated by the Dubai Financial Services Authority (DFSA).
  • 2.

    Will I be awarded shares in the startup/SME that I invest in?

    By investing in startups/SMEs on Bambucorn, your name shall be entered into the Issuer’s/SPV’s register of shareholders thereby making you a shareholder (or an ultimate beneficial owner) from a legal perspective. On the platform, these shares that you hold shall be represented by tokens. This has been done to enable the secondary transfer of tokens when Bambucorn establishes a secondary trading facility for the tokens issued on it. (Please note that we intend on establishing a secondary trading facility for tokens issued on the platform in future.  Currently, such a secondary trading facility does not exist).

  • 3.

    What underlying rights will these tokens carry?

    The tokens will carry the same rights that are associated with the ownership of the shares in the legal entity that you are a shareholder of. For more information, please refer to the Investment Subscription Agreement of the deal that you plan to invest in.

  • 4.

    How does the platform function?

    • Bambucorn uses a data-driven approach to source for investment opportunities and list them on the platform. As an investor, you shall be able to view these deals after completing all Anti-Money Laundering (AML) checks by our compliance team.
    • You can download/view the documents and even chat with the assigned expert for the offering to complete your due diligence.
    • Once you’ve decided to invest in the offering, you will need to sign the Investment Subscription Agreement (ISA) and transfer the subscription monies to the Client Money Account (CMA).
    • Upon the offering closing successfully, tokens shall be allocated to your wallet and shares shall be registered in your name.
    • The Issuer shall provide you with updates on a periodic basis.
  • 5.

    How will I be notified if there is a change in an Issuer’s circumstance?

    In all cases, any material change in an Issuer’s circumstance shall be listed in this section. We expect that a material change during the offering period would occur very rarely (as the platform would conduct its due diligence prior to listing the offering on the platform) and in the event it does occur during the offering period (not including the cooling-off period), we shall ask you to reconfirm your investment (if you have invested) in the offering.

  • 6.

    Is there any criteria that you use to evaluate investment opportunities?

    As a platform regulated by DFSA, we review every prospect before listing it on the platform. This due diligence is generally done in-house by our investment team but may be outsourced under exceptional circumstances. We conduct a comprehensive review before deciding to list the prospect on our platform. Some of the key parameters addressed by the review are:

    • Organization of the company
    • Corporate Structure and ownership
    • Founder and Management Team
    • Due Diligence- The management of the platform conducts its own research and due diligence before forwarding the proposal to the Investment Committee. Some points considered are:
      1. (a)Problem being addressed
      2. (b)The extent to which the solution is addressing the current problem
      3. (c)Product/ Service Overview
      4. (d)Serviceable Market size
      5. (e)Competition dynamics
      6. (f)Team
      7. (g)Intellectual Property Rights
      8. (h)Historical Financials
      9. (i)Financial Projections
    • Investor Terms

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

  • 7.

    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.

  • 8.

    Till the time the offering is closed, where is the money that I have transferred kept?

    The money is kept in a separate bank account (Client Money Account) and is subject to the Client Money Provisions of the DFSA Rulebook. Please refer to the Conduct of Business (COB) Module for more information. This money is kept separate from the platform’s own money and the platform is required to provide regular reports and commission independent audits on this account, the results of which are shared with the regulator.

  • 9.

    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.

  • 10.

    Am I charged anything for investing on Bambucorn?

    Bambucorn’s business model is to charge the Issuers on the platform a success fee, which is often a percentage of the funds they raise on the platform. Currently, at the time of making an investment, you will not be charged any fees, however you may be charged pursuant to any other agreements you may have entered into through the platform. If the offering does not close successfully, you will be refunded the money transferred net of transaction charges. Please note that you may be charged additional fees if you decide to sell your tokens on the secondary trading facility. Bambucorn will inform you at the time on the charges for facilitating a secondary trade of tokens.

  • 11.

    How much can I invest through Bambucorn (in aggregate)?

    Investors are subject to different limits based on their accreditation status (Professional or Retail). Whilst there is no limit on Professional investors, Retail investors are subject to a limit of USD 50K in a given calendar year.

  • 12.

    How much can I invest through Bambucorn (per deal)?

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

  • 13.

    Can I withdraw a commitment to invest in a particular deal?

    Yes, you can. You can cancel a commitment to invest (free of charge) in a particular deal up to 48 hours after the offering period has ended. Please note that you shall be responsible for bearing any transaction and currency charges affiliated with the transfer of money.

  • 14.

    What happens if I have invested in a deal, and it does not raise its minimum target level of funding?

    In the event a deal does not raise its minimum target level of funding, you shall be refunded your subscription monies net of any bank charges and exchange rate difference, if any.

  • 15.

    How would I be able to keep track of the progress of my investments on a regular basis?

    All Issuers (of successful offerings) on the platform shall be required to provide the platform with their summary financials (on a quarterly basis). The platform will send these out via email to yourself.

  • 16.

    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.

Compliance

  • 17.

    What criteria do I have to satisfy to become an investor on Bambucorn?

    In order to become an investor on Bambucorn, you will need to pass all AML checks and self-certify yourself as a Professional or Retail. As we have obtained an Innovation Testing Licence from the DFSA, we are only restricted to onboarding UAE residents for the time-being. Once we obtain an unrestricted licence, we shall be able to onboard residents from a majority of the countries across the globe. Get notified of any updates by registering over here

  • 18.

    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
  • 19.

    What is the difference between a Professional Client and Retail Client?

    Professional Client: A Professional Client will not be subject to any investment limits on the platform. A Professional Client who generally has a higher net worth and who has prior experience and understanding of the relevant financial markets. The criteria to be classified as a Professional Client can be found here.

    Retail Client: A Retail Client will be restricted to investing USD 50,000 on the platform in a calendar year. You will be classified as a Retail Client if you do not meet the criteria to be classified as a Professional Client or if you choose to be classified as a Retail Client. Please note that a Retail Clients are offered a higher level of protection vis-à-vis Professional Clients.

  • 20.

    Can I change my Client classification?

    Yes, you can change your client classification at any time by writing to us at contact@bambucorn.com. Please note that we may request documentary evidence of any representations you make.

  • 21.

    What documents am I expected to be submitted to become a Client of Bambucorn?

    Whilst the requirements would change depending on your risk-rating (calculated internally), all Clients would be expected to submit a picture of their passport and their proof of address. Documents accepted as proof of address include:

    • Utility Bills not older than three months; or
    • Bank statement not older than three months; or
    • Mortgage statement issued by a regulated financial institution in the past twelve months.