FREQUENTLY ASKED QUESTIONS.
Find answers to common questions about raising capital through Funder
What are the benefits of capital raising through Funder compared to other financing alternatives?
Funder's funding model involves multiple investors providing capital in exchange for ownership shares, and the funds can be used to expand and grow your business. Compared to traditional investing, an important difference is that businesses can invite existing customers or followers to become investors.
For entrepreneurs applying for capital raising through Funder, there is an additional advantage: investors bring valuable knowledge and contacts that can become beneficial business opportunities. You can find dedicated advisers, evangelists, and even potential board members among investors.
What kind of enterprises could use the Funder platform?
Funder is available to all businesses in Kenya that are registered as private limited companies (LTD), public limited companies (PLC) which participate in lucrative and legal commercial activities.
Are Funder investment options open for companies registered overseas?
Funder is currently open to all companies registered in Kenya. In the case of a consortium, it is essential that the company registered in Kenya owns the strategic assets that the company uses for its activities.
If you are a resident of Kenya, you can set up a company here: https://ecitizen.go.ke
What should I do before launching my capital raise campaign?
Funder recommends that entrepreneurs considering equity funding carefully weigh the purpose and role of raising funds, and what can be accomplished with these funds. You should also prepare business plans and cash flow forecasts.
It's also crucial to examine the makeup of your team and, if you lack particular skills (for example, marketing personnel), find a solution to the problem before launching a campaign or, alternatively, plan to address it after the campaign has concluded.
Before launching your capital raise, it is important to prepare a marketing and communication plan so that you can draw attention to your campaign from the beginning.
In addition there are some requirements for launching a capital raise campaign:
- Your business must be a Kenyan private limited company (LTD) or public limited company (PLC)
- The shareholders' right to subscribe, the shareholders' right to vote electronically, and the par and premium value for share capital increases should all be included in the company's statutes.
- The entire share capital of the company has been deposited.
- You have opened an enterprenuer profile with Funder.
- A resolution to raise capital was approved at a duly convened shareholders' board meeting.
- You've made the necessary decision to seek investors and raise the company's share capital.
- Your campaign profile has all of the accurate, complete information and materials.
What percentage of shares do you recommend offering to investors?
That decision is entirely up to the entrepreneur. We recommend consulting with your legal counsel about the situation. When it comes to equity funding through Funder, the percentage normally ranges from 5 to 20%.
How can I calculate the value of my company?
The value of your firm is primarily determined by you, although we recommend researching various valuation methodologies and consulting with other businesses and specialists. The economic situation, market potential, management team, competition, fixed assets, contract security and terms, and other elements all influence the worth of a company.
Your potential investors are highly interested in your company's valuation, and this is a key factor to consider when making an investment decision. As a result, make sure to provide an explanation of how you calculated your company's value in your campaign materials.
How much does it cost to start a campaign on the Funder platform?
Please see our pricing page for detailed information about fees and service charges.