How can I use the Funder platform to invest in businesses?
You can invest by purchasing stock in the firm you want to invest in. During the campaign, investors transfer funds to a separate escrow account. The target business will not be able to use funds until the campaign is completed successfully. If the campaign is a success, the money are transferred from the escrow account to the account of the target business. Shareholders are investors who become shareholders. Funds are transferred back to the investors if the campaign fails.

Who can invest through crowdfunding?
You can invest as a person or through your business if you are at least 18 years old. You must also have a security account with an Kenyan commercial bank.

Is it possible for foreign investors to invest through Funder?
Yes, foreign citizens can use Funder to invest.
Foreign residents do not required to open securities accounts in Kenya if the campaign organizer does not use the Nairobi Securities Exchange.
Investors require securities accounts that are registered in Kenya if a campaign organizer uses Nairobi Securities Exchange. You can open a securities account with a commercial bank in Kenya or utilize a correspondent account at your home bank if you don't already have one. Another alternative is to make an investment in a convertible loan instrument. It is an alternative to an equity investment. Read more about different instruments.

Is it possible to invest as a business?
Yes. Funder features user accounts for private individuals, but you can choose whether to invest as a private individual or as a business when you begin your investment. The latter necessitates authorization, or the legal right to represent your organization and conduct business with other legal entities.

What is securities account and how to get it?
A securities account is similar to a bank account in that it allows you to deposit funds. The distinction is that it is utilized to conduct security trades and to deposit securities.
Decide whether you want to invest as a private individual or a legal business before contacting your bank or any other commercial bank in Kenya to open a securities account. Most banks offer an internet option to open a securities account for a private person.
You can use the CDSC's E-register to see if you or your legal entity already has a securities account. It may take a few days for the account to be published in the central registry once it is opened.

How can I alienate shares of an Kenyan enterprise?
Because the minimum investment is usually between 10,000 and 30,000 KES, crowdfunding is a simple and low-risk way to start or diversify your assets.

Who can invest through crowdfunding?
If the shares are registered in CDSC, no transaction form is required to alienation the shares. This activity can be performed as a transaction to a security account on the Internet bank or in the bank. The transaction can be done as a payment for shares, in which the buyer and seller exchange the shares and the money at the same time, or it can be done without payment, in which the buyer and seller exchange the shares on other terms or at different times. For security account transactions, the bank fee is imposed according to the bank's pricelist.
If the business's shares are not registered in CDSC, the nominal value of its share capital is at least 1,000,000 KES, and the business has denied notarized transactions, the transaction can be completed in a form that is acceptable to all parties.
The transaction should be notarized if the shares are not registered in CDSC but the nominal value of the business's share capital is less than 1,000,000 KES.

What will be my costs related to investment?
While investing, the investor incurs no additional costs. The business that is raising cash pays the Funder and security costs. The only expense for the investment is the fee of the security account.

What are the risks?
Equity crowdfunding entails some risks, which you may learn about in our risk warning. We urge that you carefully analyze each investing decision and diversify your portfolio.

What tax benefits and obligations are to be taken into consideration when investing through crowdfunding?
Unfortunately, Kenyan law does not provide any tax benefits to crowdfunding investors, either while entering or departing the investment. At the same hand, if you invest as a firm and want to exit the investment before the profits are shared among investors, you do not have any income/profit tax responsibilities on sale. When you invest as a private individual, you must pay taxes on income/profit.

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