Under crowdfunding regulations Dexitrade can help raise up to 10m Pesos (approx $200,000), by selling a percentage of a company to the public via the Dexitrade crowdfunding portal.
Existing or newly formed companies can create a request to raise funding, adding a 2 to 5 minute video elevator pitch, a business plan in text or PDF format, and major team members, along with the amount you wish to raise and the percentage of the company you want to sell.
Once approved, the campaign to raise funds is viewable for 30 days, after which the campaign is open for a further 60 days for the general public to buy shares. Once the target has been met, the campaign is closed and the funders receive their money. If the campaign target is not met after 60 days, all pledged funds are immediately returned. Investors also have up to 48 hours before the campaign end date to cancel their pledges.
As an investor, the advantage of investing funds this way, is liquidity. Shares can easily be sold or traded at any time. For companies raising funds their investors may include their own customers who have a vested interest in seeing their investment grow.Initial Token Offerings (ITOs)
For amounts above $200,000, Dexitrade can help raise funds from investors in 2 ways. The first method can be done with a limit of 19 investors, with the shares issued and locked for one year, and thereafter freely traded. The second method would be done under Philippines Initial Token Offering (ITO) regulations, with any number of investors, and would be freely tradeable at the successful conclusion of any campaign. Funding can represent sale of company shares, commodities futures, interest or dividend bearing assets, property investments and more.Dexitrade Issuance and Exchange on Stellar Blockchain
Pledging and purchasing of shares can be done by Cash, Bitcoin or Ethereum, from within the Dexitrade Wallet.
Dexitrade uses the Stellar Blockchain to issue tokens representing assets, and trading of these is via the Stellar decentralized exchange (DEX). FOr more details on stellar please visit stellar.orgDexitrade Fees
Dexitrade only charges on successful campaign targets being met and accepted, with a fee of 5% of the total amount raised. Secondary trading incurs a fee of 5% paid by the seller of shares.
FAQ(Frequently Asked Questions)
Dexitrade also offers high net worth individuals a chance to invest within the first 30 days of a campaign, where it is not open to the general public to buy. If the sucessfully raised target amount is larger than USD 200k and/or there are less than 17 investors, then the campaign would not continue to be offered to the general public. The shares issued are locked for one year before being tradeable.
Investors can invest up to 50,000 pesos per year in multiple campaigns, but if investing more, will be asked to agree to a waiver, confirming that they know what they are doing, and that they may risk losing their investment. As an investor you should be aware that many of these companies are new, and you are at risk of losing your entire investment. However, should a company fail during the first 12 months after funding, investors may recoup some of their investment.
Once you have been aproved, you would upload a 2 to 5 minute video pitch and a business plan in PDF format, and add your team member bios and pictures. The campaign would be made public for 30 days, during which private investors would be able to pledge to buy shares. This may complete the fund raising, but if not, the campaign would be made public for a further 60 days to anyone who would like to invest. Once a campaign is successful, it is closed and you receive the money in 4 quarterly payments. The first payment starts when you transfer shares in your company to Dexitrade to hold as nominee shareholder. Dexitrade can help create the SEC registered company if it has not already been done. Should you wish to cancel a campaign at any time during the 60 days, all money would then be returned to the investors wallets, with no fees incurred by either investors or fundraiser.
When creating your business plan, you must include the following - the busines plan can then be given out to anyone as a prospectus to raise money.
- Chosen intermediary via SEC list of registered CF Intermediary (eg: Dexitrade)
- Nature of your business, financial condition, historical reports of operation
- Risk factors of investing in the project
- Procedure on how to return funds if target offering is not met
- Procedure to complete or cancel investment commitment
Tagcash is a digital wallet developer and platform, building blockchain solutions on Distributed Ledger Technology. Tagcash is regulated by the central bank of the Philippines (BSP), and is authorised as an Electronic Money Issuer (EMI) - https://tagcash.com/emi.pdf