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Frequently Asked Questions

Last updated December 9, 2022

All you need to know about...

Investing

Is TCFX operational?

The TCFX Beta Version was declared fully functional after being subject to a vast range of tests and will be operational after the official registration of the company with the Chamber of Commerce of Neuchâtel, in Switzerland.

How does the platform function?
  • TCFX uses a data-driven approach to curate startups and list their offerings on our platform. Once offerings on the Platform are listed, Members can make use of a direct chat with the Fundraiser’s team to conduct their due diligence in the most effective manner possible.

  • Members who have completed all checks (including KYC) are able to invest in these offerings listed, by signing the respective Purchase Agreement. Once the Member signs the PA, he/she is required to transfer the committed amount to the Client Money Account (details about the Client Money Account will be made available after the signing of the PA).

  • Upon the offering closing successfully, investors shall become shareholders of the fundraiser company depending on the financial instrument issued by the Fundraiser.

What are the arrangements for any client assets deposited on TCFX?

The assets of investors deposited on TCFX are held and controlled by an Escrow Agent/Financial Intermediary (DFX) accredited by the Swiss Financial Market Supervisory Authority (Finma).

How would I be able to keep track of the progress and performance of my investments on a regular basis?

It is mandatory for companies which successfully fundraise on TCFX to provide its investors with global activity reports on a quarterly/semestrial basis. You will have access to those documents on a dedicated interface on TCFX.

Can I sell/transfer my shares?

You will be able to sell or transfer shares on a peer-to-peer secondary market.

Can investors from all jurisdictions invest in offerings on TCFX?

TCFX is able to onboard citizens from a vast majority of jurisdictions across the globe. Please refer to the Restricted Country List.

Are TCFX offerings restricted to specific sectors?

TCFX is sector agnostic. However, we do have a preference for innovative and scalable companies in the blockchain/Web3 sector.

What happens if an offering does not raise its minimum target level of funding (soft-cap) before the subscription period comes to an end?

The fundraising is considered a failure and investors shall be refunded with respect to the terms of the offering.

How will TCFX deal with overdue payments or default by a fundraiser?

TCFX shall not assume any liability on behalf of the Fundraiser. In the event the Fundraiser defaults, or has outstanding payments to make, please contact the Fundraiser directly. Please refer to the corresponding Purchase Agreement signed with the Fundraiser in question.

TCFX will eventually ensure proper communication on the matter by the Fundraiser as well as a possible action plan in order to resolve the issue.

Can I invest in every offering listed on TCFX?

TCFX believes in the process of democratizing access to venture capital investments. Hence, all kinds of investors who successfully comply with the “Know Your Customer” (KYC) are able to invest in public operations.

Is there a minimum/maximum investment limit per offering on TCFX?

This amount is determined by fundraisers and thus differs from one operation to another. Please refer to the specifics of the given offer.

What is the legal structure of companies with an offering listed on TCFX?

The legal structure of companies proposing an offering on TCFX can differ and shall be described in the details of the operation.

What are the major risks associated with offerings listed on TCFX?

Investing in private markets presents risks and TCFX is not responsible for the success of companies listed on its platform and our in-depth due diligence process is not a guarantee of returns. We recommend to invest only what you can afford to lose, in projects you understand, and try reducing your risk by diversifying your investments.

What are the tax implications of investing in a company?

We are not tax advisors. We would encourage you to talk to a tax advisor before making an investment.

Fundraising

Is TCFX operational?

The TCFX Beta Version was declared fully functional after being subject to a vast range of tests for months and will be operational after the official registration of the company with the Chamber of Commerce of Neuchâtel in Switzerland.

What are the benefits of being crowdfunded?

Fundraising is a tedious process for start-ups, favors:

  • Efficiency

Focus your efforts on managing your start-up and optimize your shareholder relationship.

  • Flexibility

Crowdfunding financing is simple, effective and provides access to fundraising methods on more flexible terms than traditional fundraising solutions.

  • Support

Project leaders are supported by experts dedicated to applying their knowledge and skills to ensure a successful fundraising campaign.

  • Marketing

A crowdfunding campaign makes it possible to verify the attractiveness of your product/service with a large sample of investors while retaining a base of potential customers.

Can TCFX tokenize existing assets of companies without raising funds?

Yes, it is possible.

What are the requirements to be accepted in the pre-selection phase?
  • Registered company in Switzerland.

  • Complete documentation (company, product/service, team, business plan, financial plan…)

  • Minimum Viable Product (MVP) Proof-of-concept and revenue.

Do I have to maintain a capitalization table?

No, TCFX shall provide you with a 24/7 automated Cap Table.

What happens after my offering is over?

After the offering is over, a decision is made on the status of the offering (success/ fail). If the offering is deemed a success, TCFX shall provide a capitalization table illustrating the number of shares and the percentage of ownership held by each investor. This table shall be based on the shares allocated to investors on the platform. You are expected to affect the necessary changes in your register of shareholders and upon doing so must provide a copy of the same to the platform. The platform, upon verifying the information provided shall release the subscription amount (net of fees and transaction charges) to your bank account or digital wallet.   

Are TCFX offerings restricted to specific sectors?

TCFX is sector agnostic. However, we do have a preference for innovative and scalable companies in the blockchain/Web3 sector.

What is the duration of a fundraising campaign on TCFX?

The duration of an offering is determined by the fundraiser. However, we expect that offerings on the platform will be open for up to a period of 90 days.

What happens if an offering does not raise its minimum target level of funding (soft-cap) before the end of the subscription period?

The fundraising is considered a failure and investors shall be refunded with respect to the terms of the offering.

Can a company raise more funds than the disclosed hard-cap?

Oversubscription shall be allowed on a case by case basis with terms mutually agreed by both TCFX and the Fundraiser, the specifics shall be disclosed to investors.

How much will I be charged on TCFX?

Fees are determined on a case by case basis and differ based on the services provided by TCFX. Please contact us for more information. 

What steps will TCFX take to ensure that the platform is not used for money-laundering activities?

KYC-AML and monetary flux are handled and controlled by a Financial Intermediary accredited by the Finma (Swiss Financial Market Supervisory Authority).

Can investors from all jurisdictions invest in offerings on TCFX?

TCFX is able to onboard citizens from a vast majority of jurisdictions across the globe. Please refer to the Restricted Country List.

How do I value my company?

As part of the e-mail application process, you are asked to include desired terms of your offering. Our internal team will review your application and provide their inputs by accepting or proposing different terms for the proposed offering.

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