Fundly - Equity Crowdfunding

General FAQ's

What is Equity Crowdfunding?

Equity Crowd Funding, is the process of collecting investment amounts from large number of investors (retail client, qualified client, institutional client) in return for issuing additional shares from equity issuer (funding applicant), It is a type of equity private investment and is intended for the public of investors, i.e. directed to a large base number of investors, whether individuals or companies, and equity issuers that request this type of financing are usually characterized by high risk, or small size, or growing business, so that the conditions for raising capital through conventional IPO process do not apply. The reason why the funding applicants (Equity Issuer) can’t apply for IPO process usually because of the relatively small financing limit or because of the fact that this type of financing focuses on a specific category of companies that are commonly small size or at early growth cycle, and very often this type of companies have weak financial position so that they cannot obtain financing by traditional banking methods or through the initial offerings procedures.

What is the role of "Fundly" platform?

"Fundly" platform operates as an intermediary between the Entrepreneurs that need to raise capital and Investors that seek investment opportunities through an online platform that eases and automate the process and the transaction. Fundly hold no liability against information provided by issuer.

Does the platform advise or provide a recommendation on any of the listed opportunities?

No, the platform's sole role is to automate the transaction.

How are listed companies on the platform get evaluated?

The funding request is submitted by filling in the required requirements under the entrepreneur section, and the appropriate opportunities are selected to be listed on the platform after reviewing the financial documents submitted by the funding applicant (the company issuing the shares for funding), bearing in mind that the evaluation of the company given in the platform is done by an accredited third party to provide reports of legal and financial due diligence.

Can non-Saudi citizens invest?

No, the platform is currently only available to Saudi citizens.