Frequently Asked Questions on Fundraising

How can I start raising funds?

It’s simple and free for anyone to submit a Fundraising campaign application, and we’ll work closely with you and your team to get everything ready for launch.

The first step is to simply access the fundraising application form, and provide a little information about your company. After this, we will get in touch with more information about how we can help you raise funds through WahedX.

Are there prerequisites to raising funds on WahedX?

As WahedX is a shariah-compliant platform, businesses with their main activities in the following sectors are excluded:

Advertising if:
Advertisers of pork, alcohol, gambling, tobacco and all other non-Islamic activities
Advertising means and modes which contravene the tenets of Islam
Media & Entertainment (Exceptions that are allowed on the platform include: News Channels, Newspapers, Sports Channels, Children’s Channels, Educational Channels):‍
Producers, distributors and broadcasters of music, movies, television shows and musical radio shows
Cinema operators
Alcohol
Cloning
Financial firms, where interest based lending and other non-shariah compliant activities take place
Gambling
Pork
Adult Entertainment
Tobacco

What are the fees involved in fundraising?

In the event of a successful fundraise, we charge a success fee on the funding amount that is deducted from the proceeds before being paid to you. This amount is determined by a multitude of factors including your company's growth stage, previous funding history, valuation, strategic alignment with WahedX, financial profile, and founding team's background.
You may incur some costs by third-party service providers. You will be informed of these third-party fees prior to proceeding.
There is no fee to submit an application for review.

Investing Questions

What is the minimum amount I can invest with?

In each offer, the minimum investment amount is decided by the company. This minimum is set as the investee company considers its funding needs, as well as the number and kind of potential investors.

We recommend looking at the details of the live offers to find out the specific terms.

I am domiciled outside of the UK and EU, can I invest?

If you reside outside of the UK and Europe, you will need to self-certify as an accredited investor in your local jurisdiction. This is intended to show us that you have the professional judgment and understanding to appreciate the risks of investing in private companies.
Please be aware that we are not currently available to accept investors from certain jurisdictions.

What types of funding would I provide to business on the WahedX platform?

Investing in businesses is about picking early-stage and growth-focused businesses that you think have the potential to grow. You invest money in them in exchange for a portion of their equity, meaning that you buy shares in their business. If a business that you’ve invested in succeeds, the shares that you own will become worth more than what you paid for them, and you may be able to sell them at a profit or receive dividend payments in the future. However, if the business fails – as many businesses do – you will lose some or all of your investment.

What types of due diligence does WahedX perform on companies?

WahedX checks all information and claims included in a company’s pitch before we allow the offer to open to investors. We ensure that each statement is fair, clear and not misleading. Where there are material statements of fact we require each company to provide evidence to substantiate the claim; or amend or remove statements.

We conduct due diligence on the company, its legal structure and its directors before we close an investment. Our investment team performs a number of key checks and searches on every company that raises on the platform, using a combination of public registers, third-party sources and information requested directly from the company.

How do bank transfers work?

When you make an investment by bank transfer, you will be given on-screen instructions including a Unique Bank Transfer Reference Number which will be used to match your funds to your investment. This information will also be sent to you by email.

Funds should be transferred to 'ShareIn Ltd'. ShareIn Ltd acts as WahedX's custodian and holds all client monies in segregated accounts. ShareIn Limited (Firm Reference Number 603332) is authorised and regulated by the Financial Conduct Authority.

Ethical & Shariah Questions

Is WahedX certified as Shariah Compliant?

All offerings on the platform have undergone screening for Shariah compliance.

What does Shariah Compliant mean?

Any product or structure certified as Shariah compliant means that the product has been reviewed by a Shariah scholar and that the product and structure end-to-end meet Shariah requirements.

General Questions

What are the main risks associated with investing on WahedX?

Investing in companies listed on WahedX platform involves risks, including loss of all your capital, illiquidity, lack of dividends or interest, and dilution of share capital, and it should be done only as part of a diversified portfolio. This type of investment is only for investors who understand these risks.

Your capital is at risk and your money is not covered by the Financial Services Compensation Scheme (FSCS) deposit protection scheme. More on the general risks of the investments on this platform can be found here.

The repayment of your capital cannot be guaranteed and there is a risk that if the company you have invested in fails you could lose some or all of your investment. Please read the offer document to find out the specific risks for each investment opportunity.

Any kind of investing involves a level of risk, and early-stage companies are no exception. A very high proportion of early-stage businesses fail. As WahedX focuses on early-stage and Small – Midsize Enterprises (SMEs) we have therefore described in more detail some of the potential risks in investing in early-stage businesses.

A full risk warning can be found here. We ask you to take time to carefully familiarise yourself with each of the risks and to properly assess whether investing in such early-stage companies is appropriate in your particular circumstances. You should note that the risks described are not intended to be exhaustive.

Is fundraising on WahedX a regulated activity?

Yes – crowdfunding is a regulated activity in the UK and each country across the world has specific regulations regarding the adoption of crowdfunding.

The Financial Conduct Authority (FCA) in the UK issued a Policy statement (14/4) The FCA's regulatory approach to crowdfunding over the internet, and the promotion of non-readily realisable securities by other media, in March 2014.

How can we help you?

Frequently Asked Questions on Fundraising

Investing Questions

Ethical & Shariah Questions

General Questions