Company Fundraising FAQ

1. Regulatory

• Who can raise funds through crowdX?

  Any operational legal entity based in the European Economic Area (EEA).

• Is crowdX licensed?

  CrowdX is licensed under the European Crowdfunding Service Providers (ECSP) regulation and is a registered trademark of Eurivex Ltd. Eurivex Ltd is an EU Investment Firm authorized and regulated since 2010 by the Cyprus Securities and Exchange Commission (CySEC) under license number 114/10 for the provision of investment services. Eurivex is also licensed by the Cysec as an ECSP (license number CSP 2/24). The company’s headquarters are located in Nicosia, Cyprus. Eurivex provides crowdfunding, investment and ancillary services to residents of the European Economic Area (EEA) and several other jurisdictions. Link to license on CySEC website: https://www.cysec.gov.cy/en-GB/entities/CROWDFUNDING-SERVICE-PROVIDERS-(CSP)/%CE%9C%CE%97%CE%A4%CE%A1%CE%A9%CE%9F-%CE%A0%CE%A5%CE%A3%CE%A7/96214/

2. How to begin the process

• What are the steps to engage with crowdX?

  Please contact us for a free and non-binding consultation on your financing needs and find out about our simple process of how you can become a client and start raising funds in record time.

3. Due diligence

• Will you check our company?

  As a regulated investment firm, crowdX is obliged to know its clients, so we will check corporate documents, company good standing, and run due diligence on all shareholder(s), UBO(s) and director(s).

• Do you check the Company business plan?

  As part of our due diligence process, we will check your Business Plan, Terms, financial reports, targets and verify to the best of our ability some of the parameters mentioned in your pitch even though crowdX, its directors and officers are not responsible for the information provided.

4. Fund raising campaign

• Do you give feedback on the application?

  We will review the documents that you have provided and contact you if additional details are needed, as well as inform you on the terms and whether you can proceed with your funding campaign.

• When does the funding campaign start?

  Once there is a clear understanding of your fundraising goals, we will proceed with the fundraising plan.

• How long does the campaign take?

  The duration of the campaign depends on your goals and targets. The duration can be as short as one week to several weeks. It will be tailor made to suit your needs and as always, in consultation with you.

• How is the money collected?

  We will place your investment pitch on our website and also in our electronic trading platform. It is up to investors to decide if they wish to invest in your financial instruments (FI), and also decide on the amount. CrowdX does not offer investment advice.

• What is the meaning of the cooling off period?

  The cooling off period allows investors the choice to cancel their request for participating in your project without incurring any penalties. That is why, crowdX will not release the money to Issuers until the colling off period is over.

• When and where will you transfer the cleared funds?

  The transfer of funds from your account with Eurivex as owner of the crowdX business name to your corporate bank account will be done within 2 working days of your withdrawal request and to the bank account you initially provided on the account opening form, provided that the terms of the offering have been met and are in line with the agreement signed.

• What happens if the funding goal is not reached?

  This will be discussed and agreed with you, and will be made available to potential investors before the fundraising campaign starts. There may be cases where the money is returned to investors, or the money is passed on to you, depending on the terms of issue.

5. Investor Registry

• Who controls the investor registry?

  The investor registry is the responsibility of the Issuer, which may be assigned to Eurivex, fore the custody of the financial instruments so investors may be able to trade in the secondary market.

• Interaction with investors

  You will need to communicate with your investors through crowdX – for example when making interest payments on issued bonds, or paying out dividends. All these matters are handled by crowdX to allow you to concentrate on growing your business.

• The bank where we wish to receive funds is asking for source & origin of funds

  Eurivex as the owner of the business name crowdX will provide full support in confirming the source and origin of the funds you raised and where necessary we will also engage with your bank to facilitate the transfer to your account.

6. Fees and charges

• What are the fees to raise funds?

  The fees start from as low as 1% but will depend on many factors such as whether the Issuer is an established brand, what kind of asset backing is provided, your previous track record, whether the Issuer is a newly registered company, who are the directors and generally the people behind the venture and many more factors.

• Are there brokerage fees charged on the trades?

  In most cases, no brokerage fees apply to trades made by retail investors (individuals). In some cases, and usually in the case of well-informed and professional investors, brokerage fees apply and such fees will be visible in the Eurivex electronic platform before investors make the investment.

7. Starting The Process

• I have no idea how to begin the process, what shall I do?

  Kindly contact our company to arrange a meeting with one of our experienced officers who will guide you through the process.

• I don’t know how to prepare the KIIS document?

  We are here to help you in preparation of the Key Investor Information Sheet (KIIS), at no additional cost.