What investment options do I have on Funder?

We provide two flexible ways for investors and VCs to engage:

• Option A – Direct Access (Free): Browse pitches, engage any business, and take discussions offline at no cost. Perfect for VCs or individuals who prefer to use their own systems and processes.
• Option B – Managed Investment: Contract Funder to handle investment management on your behalf, including due diligence, documentation, execution, and reporting. Ideal for VCs or institutions seeking a turnkey solution.

How can I use the Funder platform to invest in businesses?

You can invest by first browsing through the available campaigns and selecting one that interests you. Before committing, we encourage you to conduct your own due diligence on the business. Once ready, you can invest in the campaign. During the campaign, investor funds are held securely in an escrow account. The business cannot access the funds until the campaign is successfully completed. If the campaign succeeds, the funds are released to the business and investors become shareholders. If the campaign fails, your funds are safely returned to you.

Who can invest through Funder?

Any individual aged 18 or above can invest as a private person or through a legal entity.

Can foreign investors participate?

Yes, foreign citizens can also invest through Funder.

If the organizer is a public company, a securities account registered in Kenya is required. Another option is to invest through a convertible loan instrument, which works as an alternative to equity. Read more about different investment instruments.

Is it possible to invest as a business?

Yes. When creating your account, you can choose to invest either as a private individual or as a business. Business investments require proof of authorization or the legal right to represent your organization in transactions.

What is a securities account and how do I get one?

A securities account works like a bank account, but it is used to hold and trade securities.

You can also check whether you already have an account using the CDSC’s E-register. Once opened, it may take a few days for your account to appear in the central registry.

How can I sell or transfer my shares?

If the campaign is for a public company and its shares are registered with the CDSC, transfers can be completed electronically through your securities account. These transactions may be carried out either as a sale (with simultaneous exchange of funds and shares) or as a transfer without payment, depending on the agreement between parties. Standard transaction fees apply.

If the campaign is for a private company and its shares are not registered with the CDSC, the transfer process follows private company legal requirements. This may involve notarization of share transfer forms, updating the company’s register of members, and in some cases, board or shareholder approvals, depending on the company’s share capital structure and governing documents.

What are my costs related to investment?

Access to the platform is free for investors unless Funder has been contracted for investment management. Businesses raising capital cover the platform and security costs.

What are the risks?

Equity funding carries risks. We encourage you to read our risk warning, carefully consider each opportunity, and diversify your investments.

Are there tax obligations?

Yes. Returns or dividends from your investment may be subject to taxes such as income tax, dividend tax, or capital gains tax, depending on the laws in your country of residence. We recommend consulting a tax advisor to understand your specific obligations.