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Frequently Asked Questions |
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What are Social Enterprises? |
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Social Enterprises are organisations that work towards a social objective with an
entrepreneurial approach. These institutions typically have a ‘double bottom-line’,
meaning that they aim to achieve a financial and social return from their activities. |
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CapitalConnect broadly defines social enterprises using the following criteria:
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- Any for-profit or non-profit organisation with a social objective and an entrepreneurial
approach
- Any organisation that is active in the areas of education, healthcare, alternative
energy, microfinance, rural infrastructure, or any other activity with a direct
social impact
- Any organisation that provides services to any of the aforementioned organizations
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2. |
How will CapitalConnect benefit social enterprises, investors, and lenders? |
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CapitalConnect is an innovative online marketplace that combines the features of
an online auction platform and a dating service. Institutional lenders, investors,
and social enterprises worldwide use our service to communicate with one another,
initiate financial transactions, and analyse market trends. |
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Participants register by submitting their organisation's financial performance information,
which we review to verify its adequacy and accuracy. Once they have undergone this
initial due diligence process, they create their own profiles, control which organisations
can interact with them, search for members with similar interests, initiate conversations
that could lead to strategic partnerships, or send offers to these organisations
to buy or sell capital. Members will have access to aggregated information on the
financial transactions that occur between CapitalConnect's members, allowing them
to analyze market trends. |
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Click here to learn more about how CapitalConnect works. |
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3. |
Is CapitalConnect a stock exchange? |
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No, CapitalConnect is an online platform that allows institutional funders and social
enterprises to send each other messages and indicative debt and equity offers. While the structured framework of CapitalConnect’s platform facilitates
meaningful interactions between its members, these organisations and individuals
finalize their financial transactions and business partnerships outside of the portal. |
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4. |
What are the qualification criteria to register with CapitalConnect?
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The following organisations and individuals may register with CapitalConnect:
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- Social Enterprises
- Institutional Investors & Lenders
- Promoter Investors
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Learn more about who can join CapitalConnect. |
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5. |
Is CapitalConnect a simple database, like, say the Mix Market or the Development
Directory? |
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No. CapitalConnect is a dynamic platform that allows stakeholders in the social
enterprise sector to share information and communicate with each other.
Click here
to learn more about the features of CapitalConnect’s online platform. |
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6. |
Does CapitalConnect vouch for the information that participants upload on the website? |
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| CapitalConnect pre-screens all of its members before allowing them to use the portal.
The due diligence process is currently limited to crosschecking the contact information of the authorized user, and ensuring that the information provided meets the minimum needs on the site. Social enterprises in operation are required to provide us with
at least one audited financial statement. Start-up enterprises are required to provide
their project plan. |
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CapitalConnect does not verify the accuracy or authenticity of the information provided by the participants. However, the Service Agreement with CapitalConnect signed by
all members contains clauses requiring them to ensure the veracity and accuracy of their information. |
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7. |
How firm and reliable are the offers made on the platform? |
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| All offers on the site are indicative, not legally binding, and are not to be treated as formal invitations to subscribe to an issue. Parties interacting on the site are expected to finalize the terms of their financial transaction off of the platform. |
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Is there a limit to the number and size of offers made on CapitalConnect? |
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No, there is no limit imposed by CapitalConnect. There is a self-check built into
the portal – by quoting disproportionate numbers (number and price), participants
only dilute their standing and their future offers are unlikely to be taken seriously
by other participants. CapitalConnect will also shortly introduce performance rating
system, wherein the conversion rates at different stages of the process are tracked,
and participants rated. |
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9. |
What is the currency for offers? |
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The currency for an offer sent on CapitalConnect is determined by the originator
of that offer. |
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If you have any questions or require any further clarifications, please write in us at
contact@edacapitalconnect.com.
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