Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more

How can we help?

All articles
Private Secondaries
What is the process of Listing on Funderbeam?

What is the process of Listing on Funderbeam?

Last updated on December 13, 2022

The Listing Process

Listing on the Funderbeam marketplace is designed to be a straightforward process comprising of: basic due diligence; review by the Funderbeam Admission Committee; joining the Funderbeam platform; and the transfer of shares.

 

How does it work?

Companies can make their investments tradable without needing to issue new shares or raise capital (unlike an initial public offering). To do this, shareholders transfer their shares into a nominee company managed by Funderbeam, which then becomes a tradable pool of investments that can be accessed by existing or new investors. Shareholders will maintain the same rights that they have today, but Funderbeam will act as a nominee and legally hold the shares on behalf of the investor. This means that the company’s cap table will not change each time a trade is completed – the trading takes place within one holding entity.

A diagram showing how Funderbeam technology enables direct investing in companies.Regulated marketplace: Shareholders are able to trade safely and securely via a regulated marketplace with published rules reviewed by the MAS.

No middle-men: Funderbeam and its proprietary technology manages the full value chain.There is no need to go via a broker or intermediary in order to complete a transaction.

A diagram showing Funderbeam Listing Process timeline Click image to view in new tab.

 

1. Due Diligence

Funderbeam carries out due diligence on the company and establishes whether it is possible to migrate shareholders onto the marketplace.

In addition to providing the relevant documentation the company will also need to establish an appropriate valuation at which to list at. This needs to be in line with previous financials and projections and will be reviewed by the evaluation and admissions committee.

2. Admissions and Service Agreement

Upon completion of the due diligence process, the company’s application is reviewed by Funderbeam’s Admissions Committee. This committee is composed of industry experts who have a wealth of experience within the financial sector alongside Funderbeam’s Head of Trading and Head of Compliance. The committee confirms that the due diligence process has been completed and the required documentation provided, and that the necessary plans are in place to complete the listing.

Once the company has been successfully approved by the Admission Committee, the company and Funderbeam will sign a Service Agreement. At this point, Funderbeam provides the company with a dedicated Account Manager to assist with the onboarding process.

3. Joining the Platform

Once the Service Agreement is signed, the company can inform its shareholders about its plans to provide them with access to liquidity via the Funderbeam platform. For this to happen, Funderbeam creates a company-specific syndicate for shareholders to join. In order to list their shares, a shareholder needs to complete the following three steps:

1. Sign up to the Funderbeam platform
The shareholder submits their details by creating an account →

2. Become a verified Funderbeam user
Shareholders are required to submit proof of identification so that Funderbeam can conduct appropriate KYC/AML checks. Learn more →

3. Join the company syndicate
Shareholders will receive a link from the company notifying them to join the company’s syndicate. They can then indicate how many shares they wish to transfer to the Funderbeam platform for trading.

At the same time, the company’s platform profile is created. This provides relevant information about the company (e.g. a description of its business, the members of its senior management team) and its share capital to all verified investors on the platform who have access to the syndicate. Typically this would be the same as the information a company would provide on its own website, or which is filed publicly with Government authorities.

4. Transfer of shares and trading
Once shareholders have asked to join the company syndicate, the company is given the opportunity for a final review of the shareholders who wish to participate, and then confirms that the transfer process may proceed. The shares are transferred to Funderbeam and displayed in each investor’s wallet – a centralised location containing their portfolio on the Funderbeam platform. Prior to trading, the company will then be asked to sign an Admission Agreement which admits the company to the Marketplace and also confirms the company’s adherence to the Marketplace Rules. Once this has been signed, shareholders are free to begin trading via the Marketplace.

You can find out more about how trading on the Marketplace works.

Requirements after Listing

General obligations

To ensure the fair, orderly, and transparent functioning of the Marketplace, companies that are admitted are responsible for:

  • Disclosing regular updates on the results and operations of the company.
  • Disclosing other material information which relates, directly or indirectly to the company or relevant investment, and which would reasonably be considered likely to have a material impact on the price of those investments.

Information that is made available to the Marketplace must be fair, clear and not misleading, and must be made available in a timely manner to all Investors.

Reporting Requirements

A company must regularly disclose updated information on its key performance indicators (KPIs). Funderbeam and each company will separately agree on and disclose the KPIs which are relevant and material in measuring the performance and success of the company.

Companies must provide updates:

  • Monthly or quarterly reporting – this must be made available within 4 weeks of the end of the respective reporting period – this will be determined and set out in the Admissions Agreement
  • Financial Statements (annual report) – this must be made available by 4 months after the end of its financial year
  • Ad hoc disclosures – Companies must immediately report and publish any information that has or may have a material impact on the investment price

The Funderbeam Marketplace rules can be found via the following link: https://www.funderbeam.com/FBMSG/trading-rules

Was this helpful?
The information about the investment opportunities profiled on this website is provided for general information and marketing purposes only and should not be considered an invitation or inducement to engage in any investment activity. Complete and comprehensive information about an investment opportunity is only available to investors who have been approved by a Funderbeam group entity

You should ensure you carefully read the Risk Disclosure Statement before deciding to proceed with any investment or transaction, including making a purchase of securities via the Marketplace. Funderbeam has taken steps to ensure that company and securities offering information is clear, fair and not misleading in accordance with its internal verification procedures. Funderbeam does not provide investment advice or any recommendation to invest. Any investment opportunity on this website should not be considered as an offer to the public and is not directed at or offered to anyone to whom it may not be so directed or offered, or located in a jurisdiction where it is unlawful to do so.

This page provides you with an overview of the services provided by different entities belonging to Funderbeam Group. In this page, we generally refer to the group as “Funderbeam”, “we”, “us” or “our”.

It is important to note that funds are raised, investments are made and trade orders are placed through three service provider entities: Funderbeam Markets AS (FBAS) (authorised and regulated by the Estonian Financial Supervision Authority under permit 4.1-1/212), Funderbeam Markets Limited (FML (authorised and regulated by the UK Financial Conduct Authority under FRN 794918), and (for trade orders only) Funderbeam Markets Pte. Ltd., (FB Pte). FBAS and FML are MIFID investment firms.

A Funderbeam client (whether investor or company) is a client of the service provider and under the protection of the requirements of the regulator under which that service provider operates: An EEA client’s service provider is FBAS, a UK/ non-EEA/ non-Singapore client’s service provider is FML, and a Singapore client’s service provider is FB Pte.

The Marketplace is operated as an organised market by Funderbeam Markets Pte. Ltd., in Singapore as a Recognised Market Operator (RMO) under the supervision of the Monetary Authority of Singapore. FBAS and FML are Trading Members of the RMO’s Marketplace. Access to the Marketplace for EEA and non-EEA clients is only provided by and through such clients’ service provider (ie FBAS or FML). The Marketplace does not provide services directly to investors outside Singapore.

With respect to any securities or investments offered by a US domiciled Fundraising Company, by visiting this site you confirm you are not a US resident or US person (as defined in Regulation S of the U.S. Securities Act of 1933) and you understand and agree that you are not acquiring any Investments for the account or benefit of any such US resident or US person. No investment opportunity in a US domiciled Fundraising Company is directed at US persons.