Frequently Asked Questions

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Eureeca launched in Dubai in 2013 and has since grown into a cross-continent platform globally, having received regulatory approval from the UK’s Financial Conduct Authority with a Branch Office in the Netherlands authorised by the Netherlands Authority for Financial Markets, and the Malaysian Securities Commission.

From its offices in Dubai, London, Kuala Lumpur, and Amsterdam, Eureeca offers high-yield potential investment opportunities from the Middle East, Europe, and Southeast Asia to its investor network who range from casual and angel investors to institutional firms. Businesses raising funds can leverage this network for capital, strategic connections, and expansion into new markets.

Seasoned entrepreneurs and investment bankers, Sam Quawasmi and Chris Thomas, founded Eureeca.

Sam has 14 years of experience working for international investment banks in London and MENA-region investment banks in Dubai. Prior to founding Eureeca, he served as Director for MENA Equities at Arqaam Capital, and Vice President of Equity Capital Markets at SHUAA Capital.

Chris has over 10 years of experience setting up and running businesses. He exited his last major business, an FCA-regulated online brokerage with 60 staff in 12 countries, in 2010. He has made numerous angel investments, owning two online businesses and a property company in Brazil.

Crowdfunding is a catchall term for a number of fundraising models that allow “the crowd” to pool funds and finance endeavours, projects, or businesses.

Crowdfunding can be split into three general categories: rewards/donation, debt, and equity.

  1. Rewards/donation crowdfunding is the model most associated with crowdfunding and has been brought to prominence by platforms such as Kickstarter and Indiegogo. This model allows people to back projects or ideas in exchange for a product, early access, or just the satisfaction of supporting a cause they believe in.
  2. Debt crowdfunding, typically in the form of peer-to-peer lending, allows individuals or businesses to take out loans from the crowd, which are paid back with regular interest payments over a fixed period.
  3. Equity crowdfunding, the model used by Eureeca, allows investors of nearly all profiles to buy equity (shares) in growth-oriented private businesses. Investors effectively become co-owners of the business and are naturally incentivised to help it succeed.

The crowd is the collective term for the people who can invest in a business on a crowdfunding platform. It is comprised of friends and family, customers, casual retail investors, angel investors, and institutional firms.

No, equity crowdfunding does not replace angel investors and VC funds.

What it does do is serve as an alternative financing option for SMEs that is complementary to angel and venture capital investing.

However, given that equity crowdfunding makes capital raising and investing more accessible, efficient and transparent than more traditional sources of capital, we do expect that it will carve out a sizable space in private capital markets. In fact, the global trend in equity crowdfunding is that, rather than replacing angels and VCs; the model is serving as a vehicle for them to invest in SMEs, along with the rest of the crowd.

 

Eureeca is an equity crowdfunding platform that connects businesses with investors.

Apply to raise funds here, and if your business successfully passes through our screening and due diligence processes, you can then launch a fundraising campaign on the platform.

Crowdfunding through Eureeca makes the process much more accessible, transparent, efficient, and cost-effective than raising from more traditional sources of capital.

 

The eligibility criteria are simple: at a minimum, we need you to be an operational SME raising a funding target of at least $250,000. Ideally, your business will be revenue-generating, and you will have raised capital previously.

Get in touch, and we can let you know if you meet our requirements.

Eureeca is a global product providing a global solution for businesses and investors to connect online, so there are very few limitations as to where a business must be based to raise funds on Eureeca.

However, please bear in mind that we currently operate in three global regions: the Middle East, Europe, and Southeast Asia, and this is primarily where our investors are based.

Because of this, it is unlikely that we will choose to list a business from Argentina, for example, as the smaller investor network in that region reduces the likelihood that the company would be funded.

Get in touch with us via Ask Eureeca or entrepreneurs@eureeca.com to find out if you’re specifically eligible.

 

Application (1-2 weeks)
- Submission of the necessary documents to the Eureeca team, followed by a discussion with the Origination (business development) team to determine suitability for a campaign.

Campaign Preparation (6-9 weeks)
- An A to Z campaign preparation and review with Eureeca’s Curation (our “fit for funding” specialists) and Marketing teams ahead of it being made publically available to investors on the platform. Includes multiple phases to prepare the entrepreneurs for raising funds.

Live Campaign (1-90 days)
- The 90-day period to raise capital from the crowd where the campaign is ‘live’ on the platform.

Closing (6-8 weeks)
- For successful campaigns, this includes the signing of shareholders’ agreements, the restructuring of the company (if needed), the issuance of shares, and the payment of fees. This phase concludes with the receipt of funds.

We are here to help you throughout the process, so get in touch if you have any further questions. Contact us either via Ask Eureeca or entrepreneurs@eureeca.com.

We have tried to make the application process as easy as possible. You simply need to register, and the system takes you through a series of steps that are user-friendly and easy to follow.

Once you have passed our initial filters, you will be asked to provide documents and information that will support your funding proposal.

  1. Pitch deck or Business plan that highlights the management team, business value proposition, market segment, revenue model, and use of funds.
  2. Financials: historical and projected (3-5 years).
  3. A Term Sheet or agreement outlining the rights you are offering.

Don’t worry; we’re here to help, so get in touch if you have any questions regarding the application process. Contact us either via Ask Eureeca or entrepreneurs@eureeca.com.

 

Almost any kind of business – from tech to retail – and everything in between.

What is important is that your business is at the very least operational, and preferably generating revenue, and raising a funding target of at least $250,000. However, businesses that are more B2C have an added advantage of having a large base of customers that make ideal crowdfunding investors. Ideally, you will have raised capital previously.

Eureeca serves a two-sided market of entrepreneurs and investors. Therefore, we only accept businesses that we deem will be attractive opportunities for our network of investors.

You have 90 days in which to raise your funds.

Crowdfunding through Eureeca is a stable and secure method of raising funds for your business.

We will discuss with you what needs to be done to give you the best chance of getting funded. However, it is important to highlight that there is a lot of work that you will need to put into your proposal and campaign.

You need to have a go-getter attitude, provide quality documentation and information, and be readily available during your campaign to respond to questions and comments from the crowd.

We’ve found that businesses that effectively convert their customers and contacts into investors, while simultaneously delivering a resonating pitch to the Eureeca crowd, are most likely to get funded. We will provide you with the tools and guidance needed to do just that.

Yes, once you’ve reached your funding target, you can either close the round or opt to raise additional funds by entering into “Overfunding”.

 

The most crucial aspect is continuing to work on getting people from your personal networks to invest. Early traction from these investors will help validate your business and the campaign, inspiring confidence in your campaign and motivating the crowd to invest.

You must also provide clear, honest answers to any questions or comments being raised. Your ability to obtain the funds will be dependent on this. You have a legal responsibility to act truthfully and with integrity at all times. Be genuine, engage often and don’t be defensive – all questions are legitimate.

The fees are simple. You pay nothing to apply, and there are no upfront fees during introductory conversations.

Once a company has been approved, and the Terms of Business have been signed, there is an application fee of $1,500. The Eureeca Investor Committee then assesses the company.

If the company passes this assessment, the company is eligible to list on the platform. If the campaign is not listed, $750 of the application fee is refundable. If a campaign is successful, Eureeca takes a success fee of 7.25% of the amount raised.

There may be additional third-party legal fees applicable during the closing process, depending on the current corporate structure and/or if necessary documents require attestation, for example.

Eureeca is only available for businesses raising a funding target of at least $250,000, but beyond that, how much you raise is entirely up to you.

We provide a marketplace through which you can raise the amount of funds you need to meet your requirements. We would advise, however, that you should look to split your fundraising into manageable chunks to meet specific milestones.

The best way is to raise enough funds to hit one key milestone in your company’s development journey, and then go back to the crowd for future raises. This can also be marked via the minimum target.

The minimum target is a milestone target that is less than the SME's funding target (i.e. 100% of the raise) but is sufficient for them to achieve key milestones that will enable them to grow the business.

This minimum target is communicated to all investors throughout the proposal, with details of what the minimum target will be used for in the proposal's Money section.

Should the minimum target (but not the full funding target) be achieved by the time the 90 days are up, the campaign will still close successfully. This target is marked on both the proposal and on the barometer.

We are largely sector agnostic, meaning that we don’t focus on specific sectors or industries. However, we aim to list businesses that are suitable for SME private equity investment opportunities and will interest our investor network, and we select businesses accordingly.

We provide a stable and transparent platform for members of the crowd to make their own decisions. We ensure the information is displayed in a clear and organised manner, but an individual investor must do their own research and due diligence before making an investment.

Get in touch with us via Ask Eureeca or entrepreneurs@eureeca.com, and we’ll discuss the potential of getting your business funded.

No, once the campaign goes live the target amount must remain the same throughout the 90-day period.

For most jurisdictions, there is no limit to how much an SME can seek to raise. However, according to Malaysian SC regulations, the maximum a Malaysian SME can raise is 3 million MYR within a 12-month period, which can be broken up over multiple rounds.

Yes, you can edit some parts of the proposal after launch, but there are restrictions. For instance, you cannot increase the amount being raised or reduce the amount of equity being offered.

This depends on how much you are looking to raise, at what price, and for what purpose. We have many guidance documents and support tools to help you with this.

To learn more, contact us either via Ask Eureeca or entrepreneurs@eureeca.com.

 

A valuation is how much you project your company is worth. The valuation of your company is based on many factors and determining your valuation is more of an art than a science.

We offer a number of valuation tools through partnerships with third parties that can aid you in fairly pricing your company.

To learn more, contact us either via Ask Eureeca or entrepreneurs@eureeca.com.

Definitely. This is what Crowdinvesting is all about.

Entrepreneurs are encouraged to promote their presence on Eureeca and the investment opportunity they are presenting. We give each entrepreneur clear guidelines on what they can and cannot do to ensure adherence with the local rules and regulations.

Eureeca's Nominee Structure is one whereby a separate company (acting on behalf of the investors) holds the shares and legal assets of the beneficial owners or trustees. This means that while the Nominee is the legal shareholder on official company documentation, it is, in fact, holding those shares on behalf of the individuals who have invested in the company through Eureeca. Therefore, while the Nominee holds the shares, the full economic benefits – including tax relief status such as SEIS and EIS if they apply – are passed on to the beneficial owners.

The Nominee allows investors as minority shareholders to represent a solid, unified bloc owning a chunk of the company rather than a minority holding a very nominal amount. It is then the Nominee’s responsibility to collect and disseminate company updates for you, to undertake any corporate action such as the buying, selling, or renewing of shares for everyone under its trust, and the monitoring and enforcement of minority shareholder rights.

This frees the founders up to focus on growing the company without administrative burdens, and investors to enjoy all the benefits of being shareholders without any of the hassles.

The US has stringent rules on marketing to or receiving investment from US persons. Therefore, we do not allow US persons - defined as persons with single or dual US nationality, persons residing in the US, or whose primary bank account is in the US - to invest through Eureeca.

Investors receive equity, or shares, in the businesses in which they invest.
 
Investors can be private individuals as well as institutions. What they will all have in common is an interest in investing in high-yield potential private businesses.

The minimum funding target that an SME can raise is $250,000 (however, the minimum target can be lower).

For most jurisdictions, there is no limit to how much an SME can seek to raise. However, according to Malaysian SC regulations, the maximum a Malaysian SME can raise is 3 million MYR within a 12-month period, which can be broken up over multiple rounds.

Once you have registered and agreed to our Terms of Business, you then deposit funds into your Eureeca account. Once we have received these funds and completed our third-party compliance checks, you are ready to start investing.

Find a proposal you are interested in and conduct your own due diligence by researching the business and industry and engaging with the entrepreneur and the crowd. You'll first need to pass our and add money to your account. When you feel ready to make an investment commitment, click the “Invest” button and follow the instructions. That’s it; you’re now committed.

If the proposal receives 100% of its funding target within the time allowed, we work with the business on completing the share issuance process. Once completed, you will receive your share certificates via email.

You can deposit money in your Eureeca account in two ways:

  1. Using your bank card
  2. Through a bank transfer

Details about the process can be found here.

Please note that pre-paid cards are not accepted. Card transactions are reflected on your account immediately, once successful, while bank transfers are reflected once they arrive in our client money account, which can take up to 5 working days.

If you're sending funds via bank transfer, please notify us by completing the deposit notice fields on the payment page. This makes it easier for us to track.

Yes, you can withdraw any uncommitted funds back to your bank account or bank card. You may only withdraw to the same bank account or card from which the deposit originated, as there will be compliance checks placed on any withdrawal of funds.

For any withdrawal requests, please use the contact us form or email us at contactus@eureeca.com.

There are many reasons to invest in deals on Eureeca.

Here’s a list of some of the most popular reasons:

  • To make a return on your investment capital
  • To diversify your portfolio by adding private equity investments
  • To support an industry or company you like
  • To help a friend or client’s business grow,
  • It’s fun, rewarding and exciting

All proposals on Eureeca are put through a due diligence process. The proposals not only pass through our in-house screening process but have also undergone basic third-party due diligence.

However, it is important that you conduct your own due diligence as you would with any investment. Challenge the assumptions being made by the entrepreneur, view their social networks and see if you have any mutual contacts, and research the wider industry.

The more research you do, the more rewarding your investment will be.

The due diligence check ensures that businesses applying to raise funds on Eureeca are legitimate and exist.

Eureeca works both internally and with third-party compliance firms to assess if the company is incorporated, the duration of operations and that all necessary corporate and legal documents are in place.

Additionally, background checks will be done on the team and founders to ensure that there is no history of fraud or other relevant criminal activity.

Yes, you do. Only cleared funds on your account can be used to make an investment commitment.

When you make an investment by clicking “Invest” on any proposal, all you are doing is making a commitment to invest your funds held on account with Eureeca.

Your money is held within our segregated client account and is only paid out once the minimum or funding target has been hit and we have completed the share issuance process.

You will receive your share certificates after our legal team has completed the necessary processes from their side. This takes some time and, in normal circumstances, we aim to provide you with the share certificates within 6-8 weeks of the conclusion of the campaign.

 

Eureeca is designed for post-operational, post-revenue businesses. Most businesses listed on Eureeca have been operating for at least 2-3 years. High-growth businesses from the digital and tech spaces, as well as retail, are well suited for equity crowdfunding and are often represented on the platform.

Eureeca enables you to engage with entrepreneurs and fellow investors by asking questions, challenging assumptions and making comments. You will be able to follow funding proposals to get status updates. You can also follow and interact with individual crowdinvestors, and participate in forums.

Eureeca is designed to host investors of pretty much all profiles, from casual, retail and active angel investors, to institutional investment firms such venture capital funds - all of which are looking to buy equity of promising businesses.

Definitely. This is what Crowdinvesting is all about.

Entrepreneurs are encouraged to promote their presence on Eureeca and the investment opportunity they are presenting. We give each entrepreneur clear guidelines on what they can and cannot do to ensure adherence with the local rules and regulations.

It is up to the entrepreneur or business owner to decide what rights will be given in exchange for the investment obtained. Entrepreneurs can set different levels of funding criteria, which are explained in an investment Term Sheet or Shareholders Agreement that is uploaded to the Downloads section of each business proposal. We encourage entrepreneurs to be very transparent with the crowd through the Eureeca portal to garner and maintain investor trust and keep them updated on the running of the business. The more transparent and responsible a business is, the better its chances of receiving funding

In addition to financial returns, equity investments through Eureeca can offer investors with social returns as well, such as supporting a business you believe in or a local entrepreneur from your community.

Investors will be shareholders in the business throughout its lifetime or until they sell or dispose of their equity stake. If the entrepreneur seeks further investment, this may dilute the relative size of the equity the investor has. However, even in this case, where the business is raising funds at a higher valuation, this may mean that the new equity share is valued higher than the original amount invested.

The process works exactly the way it happens offline; Eureeca is only replicating it online.

We have the necessary tools for investors and entrepreneurs to continue using the site for interaction after the business has been funded. We encourage entrepreneurs to continually update investors about their progress

Eureeca manages the necessary procedures involved in the funding and share issuance processes. We have global administrators and legal advisors who will be maintaining the records of the investors and their equity stake in the businesses that get funded through Eureeca.

The share issuance and transfer of funds will all be carried out through these legal, accredited entities. Eureeca, doesn’t, however, help to secure returns. This is dependent on whether a business is successful and provides an exit opportunity.

We advise you to consult with a tax professional for more details, as each individual's case is different.

Yes, there are tax-relief opportunities through the UK Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS) on certain deals on the platform.

Click here for more information.

KYC stands for “Know Your Client,” and is another way of saying due diligence. In order for us to perform this check, we will need a copy of your passport and a recent proof of address (e.g. a utility bill) to be uploaded to the website.

Please contact us at kyc@eureeca.com for any questions or assistance.

That depends on your accreditation status, which differs across different countries and jurisdictions. For example, according to the Malaysian SC, there are three investor classes: Retail investor, Angel Investor, Sophisticated Investor.

Each classification comes with its own qualification requirements and investor limits, so it's important that you select the one that you fall into (which you will be asked to do upon sign up to the platform). For example, retail investors can only invest 5,000 MYR per SME.

Currently, most jurisdictions follow the UK’s FCA classification, which offers sound advice on investment limits (e.g. do not invest more than 10% of your annual income into risky asset classes), but no actual restrictions.

The minimum target is a milestone target that is less than the SME's funding target (i.e. 100% of the raise) but is sufficient for them to achieve key milestones that will enable them to grow the business.

This minimum target is communicated to all investors throughout the proposal, with details of what the minimum target will be used for in the proposal's Money section.

Should the minimum target (but not the full funding target) be achieved by the time the 90 days are up, the campaign will still close successfully. This target is marked on both the proposal and on the barometer.

Yes, you can. For any investment made via the Eureeca platform, there is a cooling-off period of six calendar days, once the deal has closed. The definition of “closed” is that it has stopped taking investments via the platform, i.e. is not open for any new investors.

While the regulatory requirement is a short cooling off period after the investment has been made (i.e. before closing, and when the investor first clicks the invest button), we feel it is more fair and appropriate to provide this cooling off period at the end of the campaign. This gives the investor a better chance of assessing any new information that emerges during the campaign.

If you wish to avail yourself of the cooling-off period, please do so by emailing us at contactus@eureeca.com.

Eureeca's Nominee Structure is one whereby a separate company (acting on behalf of the investors) holds the shares and legal assets of the beneficial owners or trustees. This means that while the Nominee is the legal shareholder on official company documentation, it is in fact holding those shares on behalf of the individuals who have invested in the company through Eureeca. Therefore, while the Nominee holds the shares, the full economic benefits – including tax relief status such as SEIS and EIS if they apply – are passed on to the beneficial owners.

The Nominee allows investors as minority shareholders to represent a solid, unified bloc owning a chunk of the company rather than a minority holding a very nominal amount. It is then the Nominee’s responsibility to collect and disseminate company updates for you, to undertake any corporate action such as the buying, selling, or renewing of shares for everyone under its trust, and the monitoring and enforcement of minority shareholder rights.

This frees the founders up to focus on growing the company without administrative burdens, and investors to enjoy all the benefits of being shareholders without any of the hassles.

As a regular Eureeca member, you get access to (and can invest in) crowdfunding rounds once they go live on the Eureeca platform. But did you know that Investor Club members - those who have credited their Eureeca accounts with at least $500 - get extra benefits?

In short, becoming an Investor Club member and getting early access to new deals gives you a head start on the competition.

We are currently in the process of adding more benefits for Investor Club members, so stay tuned for more updates.

For more information on how to become an Investor Club member or other questions related to this, please contact us at investors@eureeca.com

We define a material change as any change or new matter that may significantly affect an Issuer’s business or its ability to carry out its proposal.

Should a material change arise in a live proposal, Eureeca will add details of this change to the Updates section where it is visible to all users.

Eureeca will also contact all investors who have committed funds to the Issuer to ensure that they are aware of the material change. Investors will be asked to confirm their investment commitment to the Issuer. Investors have 5 working days to confirm their commitment in writing. Any commitments not confirmed by the end of this period will be cancelled.

Eureeca does not warrant or guarantee any return on your investment in any shares that you commit to invest in on the Eureeca website.

Eureeca does not warrant or guarantee that you will ever be able to resell your interest in such investment, that you will be able to recoup all or any part of the purchase price for such investment, or that you will ever make a profit on such investment.

Eureeca does not currently have a secondary market nor does it facilitate the secondary sale of shares or equity.

Eureeca has contingency arrangements in place to ensure the orderly administration of investments, in the event that is ceases to carry on its business.

If you would like a copy of Eureeca contingency Arrangements, please send an email to: contactus@eureeca.com