New crowd funding rules which allow eligible entrepreneurs to raise up to $5 million by offering investors an equity stake in their businesses.
According to Minister of State for Finance Senator Kwasi Thompson under the crowd funding rules noted that entrepreneurs can now avoid the expensive and often onerous processes involved with traditional fundraising and secure debt-free capital by selling a stake in their businesses while maintaining control of their companies.
“The new rules are now in effect and they represent a game changer. Eligible entrepreneurs can raise up to $5 million to put towards the development of their start-ups or existing small businesses,” said Thompson, noting that local platforms will allow them to raise this money from citizens and residents across the country who are interested in investing in their businesses.
“This is just one way that we are breaking down the barriers for Bahamian entrepreneurs and small businesses to raise capital in The Bahamas.
The new crowdfund rules provide an appropriate balance between access to capital for entrepreneurs and, of course, provisions to ensure protection for potential investors. The rules also seek to minimize systemic and jurisdiction risks. These innovative regulations have already created space for the establishment of the nation’s first licensed equity crowdfunding platform, which goes by the name Arawak X. I understand as well that The Bahamas International Stock Exchange (or BISX) has also been approved to establish its own similar platform to raise funding for Bahamian Small Businesses. We expect to see even more innovators come forth as a result of the new framework,” said Thompson.
The rules can be viewed at https://www.scb.gov.bs/
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