Beban is a licensed and regulated by the Central Bank of Bahrain as a crowdfunding platform operator. Beban provide a platform for entrepreneurs to pitch and offer investment and business opportunities in the form of equity share in their business. Investors on the other side are able to invest and own equity in a business that is offering shares on the platform.
Equity investment is when someone invests money in a company by purchasing shares of that company. This means that the investor will have partial ownership of the company depending on the number of shares purchased and the share value.
Equity crowdfunding comes as a viable option for businesses to raise funding quickly. Equity crowdfunding happens when a “crowd” of people fund a business opportunity in exchange for shares in that business. Equity crowdfunding provides businesses with the ease of access to a large pool of people and investors, who would have been challenging to reach otherwise. At the same time, these investors would enjoy having access to unique opportunities they may not have come across before, with the option to invest in businesses they believe in and may own shares in them. It’s a mutually beneficial solution for both fundraisers and investors. Accessible, quick, and impactful; that’s equity crowdfunding.
Investor: Browse and view projects details on the portal. Once you have are ready to invest create an account and a profile to invest.
Issuer: Register and Create a password. Fill out the Initial Review application and an Equity representative will contact you for other details.
Beban provides a secure and easy-to-use crowdfunding platform that enables entrepreneurs to fundraise and obtain funding for their business and fulfil their objectives.
80% of the amount to be raised.
Each campaign will have a 90 days period to fundraise and reach the minimum fundraising target. If the fundraising target is not met within the 90 days period, all investments will be refunded back into each investor.
After you have invested in an offer, your money is kept in the offer account with Beban, once an offer is fully subscribed and has ended, Beban then initiates the share allocation process and subsequently, the payment process.
Payment is collected immedietly upon confirming your investment on the website.
You can top-up your wallet using one of the following:
-Bank Transfer - (0% fees)
-Debit Card Payment - (1% fees of the top-up amount)
Yes, you can market your offer anywhere outside of the platform.
Yes, you can contact the fundraiser through the messaging feature on Beban's platform on the offer page.
The share price is determined by the entrepreneur based on the company valuation and number of shares available.
A valuation is an estimate of your company's value taking into consideration all factors impacting your business and its growth, revenue, assets, product and financials.
Your finance department can assist with valuation of your company, otherwise, there is a number of consultants within the markets that you can contract with to complete the valuation process on your behalf.
Beban will hold all shares invested through its platform as a legal shareholder on the company register (nominee). However, share certificates will be issued to all investors to confirm their beneficial ownership of the shares and subsequesnt economic benefits. This process makes investors and entrepreneurs lives easier as Beban manages the entire investors list from crowdfunding, thus, reducing management and administrative efforts into investor management.
No, once a campaign has gone live, the campaign details cannot be amended, including funding target, pricing and timeline.
Beban is a crowdfunding platform licensed by the Central Bank of Bahrain and is compliant with its laws, thus, Beban is unable to provide its services to any person or entity without verifying their identification information prior to initiating the business relationship.
If an offer fails to reach 80% of the funding amount through crowdfunding, then the campaigns fails and money will be refunded to all investors.
Equity investment is risky, with a high probability of investment failure or loss. Thus, we recommend you take the required measures to review the investment opportunity and conduct your own due diligence to understand the risks of investing in equity investment and/or crowdfunding as Beban shall not be held liable to any losses of investments.
When you buy shares in a company, the company uses the money collected from crowdfunding to grow and expand, thus, if the company grows in value, your shares grow in value. In addition, if the company does substantially well during a financial year, then the company can distribute dividends to its shareholders.
On the other hand, if the company loses or decreases in value, then your shares will subsequently decrease in value.
For the year 2023, the rate is 70%.
Beban will facilitate the communication between fundraisers and investors as part of the nominee structure, in addition, it will update the issuer with any shareholder information deemed necessary.
Once an offer has closed successfully (meaning 80% of the amount has been raised and after the offer period has elapsed) then Beban transfers the money to the issuer.
At this stage, Beban is launching investment services to GCC residents only.
The fundraiser is responsible to announcing material changes on the offer page, however, any material changes that may impact the investors shall be reviewed by Beban and appropriate action will be taken accordingly.
Beban does not currently have a secondary market to sell shares. However, this service will be provided in the near future.
Listing Fee:
- Beban charges a listing fee of BD350/US$930 for each offer.
Success Fee:
- For successful campaigns, Beban charges 6% of the total funded amount.
After you have added your bank details to your account, you will need to contact Beban’s customer support to amend your bank details, you can do so by filing the form under the Contact Us section https://beban.me/content/contact-us/ and a team member will contact you for further information.
The cost of legal administration and fees of registration (CR update, amendments to Articles and Memorandums of Association, Legal Form amendments…etc) which equals will be pro-rated on each investor based on size of investment, as per the below example:
If a campaign target is $100,000, and an investor invests $30,000 into the campaign which amounts to 30% of the target, then the investor will be charged 30% of the Administration Fees.
A post investment fee of 5% of all sums distributed to the Investor for Beban’s services as nominee providing management services in relation to the Investor’s Shares such as dividend distribution, proceeds of sale and other cash returns (if applicable).