ISSUER FAQ

MOST FREQUENT QUESTIONS AND ANSWERS

General

  • 1.

    Would investors on the platform receive tokens or shares?

    The names of investors in your offering (on the platform) shall be entered into the Register of Member at your own cost. However, these shall be digitally represented on the platform in the form of tokens. The digital representation of shares may allow investors to realize the value of their investment much earlier once a secondary trading facility is established.

  • 2.

    Can I list my offering on Bambucorn?

    Yes, you can! Please do send you application to snavani@bambucorn.com. Our team shall take a look at the application and a member of our team shall get in touch with you. Within your application, please do include your pitch deck and your financial projections!

  • 3.

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

     

    Tokens offered on the platform shall be digital representation of one of the following securities:  

    • 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
  • 4.

    Why are investors offered tokens on the platform?

    Please note that as an Issuer on the platform you shall be offering shares. However, to eventually enable secondary trading of the securities offered on the platform (subject to Bambucorn obtaining the necessary regulatory approvals), all shares shall be digitally represented as tokens. Bambucorn intends to eventually list the tokens (digital representation of shares) on a regulated secondary trading facility, thus increasing liquidity for investments made on the platform and providing a price-discovery mechanism. These benefits may result in a higher number of investors exploring early stage investing, increasing the probability of startup fundraising. For avoidance of doubt, Bambucorn currently does not have a license to perform secondary trading of tokens.

  • 5.

    How much will I be charged for listing an offering on the platform?

    We will only charge you if your offering is successful on the platform. We shall charge a cash fee that shall be based on the funds you raise through the platform.

  • 6.

    How much can I raise on the platform?

    Bambucorn, currently holds an Innovation Testing Licence (“ITL”) issued by the Dubai Financial Services Authority (“DFSA”) which allows Bambucorn to raise up to USD 200K per offering. However, upon the removal of the restrictions Issuers on the platform shall be able to raise up to USD 5 million in a calendar year.

  • 7.

    What type of startups/SMEs are listed on Bambucorn?

    Currently, Bambucorn lists start-ups and/or SMEs 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. 

  • 8.

    Can my firm be registered anywhere in order to raise money on Bambucorn?

    Please reach out to us at contact@bambucorn.com for more information.

  • 9.

    What documents will I need to prepare to get listed on the platform?

    In order to submit an application, please send your pitch deck and your financial projections to snavani@bambucorn.com. Once we accept your application, you may be required to prepare a few more documents such as an Investment Subscription Agreement.

  • 10.

    How long will my offering be open on the platform?

    The length of an offering will issuer specific. We do expect that your offering shall be open for investors to subscribe to for a period of 90 days.

  • 11.

    What happens after my offering is over?

    After your 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 you with a capitalization table illustrating the number of shares and the percentage of ownership held by each investor. This table shall be based on the tokens allocated to investors on the platform. You shall be 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.  

  • 12.

    What happens if my offering does not raise the minimum target level of funding?

    A determination of the status of your 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 of your offering

  • 13.

    What happens if my round is oversubscribed?

    The platform’s systems do not allow for oversubscription. Hence, it would not be possible for your offering to be oversubscribed.