Maydan

Get Answers to Frequently Asked Questions

Crowdfunding

Crowdfunding is a method of funding a project or organisation by pooling the money of individual investors. It can provide a number of benefits beyond the financial including marketing, audience engagement and feedback. Crowdfunding allows good companies which don’t fit the pattern required by conventional financiers, to break through and attract cash. There are a number of types of crowdfunding but the 3 main categories are:

  • Reward or donation based crowdfunding – these are not investments
  • Loan crowdfunding (often referred to as peer-to-peer loans or debt crowdfunding)
  • Equity crowdfunding

Equity crowdfunding is the process whereby individuals or the “crowd” invest in an unlisted company (a company that is not listed on a stock market) in exchange for shares in that company. Equity crowdfunding is a great way to match companies who need funding with individuals who wish to invest. Investors become shareholders and have partial ownership of a company. Individuals get a share in the future success of a company they believe in. If the company fails investors can lose some, or all, of their investment.

Yes – crowdfunding is a regulated activity in the UK and each country across the world has specific regulations regarding the adoption of equity crowdfunding.

The Financial Conduct Authority (FCA) in the UK issued a Policy statement (14/4) The FCA’s regulatory approach to crowdfunding over the internet, and the promotion of non-readily realisable securities by other media, in March 2014.

Your capital is at risk and your money is not covered by the Financial Services Compensation Scheme (FSCS) deposit protection scheme. More on the general risks of the investments on this platform can be found here.

The repayment of your capital cannot be guaranteed and there is a risk that if the company you have invested in fails you could lose some or all of your investment. Please read the offer document to find out the specific risks for each investment opportunity.

Any kind of investing involves a level of risk, and early-stage companies are no exception. A very high proportion of early-stage businesses fail. As Maydan focuses on early-stage and Small – Midsize Enterprises (SMEs) we have therefore described in more detail some of the potential risks in investing in early-stage businesses. You can find our Risk Disclosure Statement by using the hyperlink. We ask you to take time to carefully familiarise yourself with each of the risks and to properly assess whether investing in such early-stage companies is appropriate in your particular circumstances. You should note that the risks described are not intended to be exhaustive.

For a significant investment, we would be more than happy to enter into separate discussions as to whether we can accommodate this. It will be dependent on your particular circumstances and the regulatory framework in your country of residence. Please contact us at [email protected] if this interests you. 
 

You can lose all the money you invested but nothing more.

Funding

As Maydan is a sharia-compliant platform, businesses with their main activities in the following sectors are excluded:
  • Advertising if: 
    • Advertisers of pork, alcohol, gambling, tobacco and all other non-Islamic activities 
    • Advertising means and modes which contravene the tenets of Islam
  • Media & Entertainment (Exceptions that are allowed on the platform include: News Channels, Newspapers, Sports Channels, Children’s Channels, Educational Channels):
    • Producers, distributors and broadcasters of music, movies, television shows and musical radio shows
    •   Cinema operators
  • Alcohol
  • Cloning
  • Financial firms, where interest based lending and other non-Shariah compliant activities take place
  •  Gambling
  • Pork
  • Adult Entertainment
  • Tobacco
  • In the event of a successful fundraise, we charge a success fee of 7% of the funding amount that is deducted from the proceeds before being paid to you.
  • To launch your crowdfunding campaign, you may incur some costs by third-party service providers. You will be informed of these third-party fees prior to proceeding.  
  • There is no fee to submit an application for review.

It’s simple and free for anyone to submit a funding application, and we’ll work closely with you and your team to get everything ready for launch.

The first step is to access the Funding application and provide a little information about your company. After this, we will get in touch with more information about how we can help you raise funds through Maydan.

We have no limit on how much or little you can raise. If you apply to raise, we’ll be in touch promptly and can discuss the best option for you and your business.

Investing

Investing in businesses (equity crowdfunding) is about picking early-stage and growth-focused businesses that you think have the potential to grow. You invest money in them in exchange for a portion of their equity, meaning that you buy shares in their business. If a business that you’ve invested in succeeds, the shares that you own will become worth more than what you paid for them, and you may be able to sell them at a profit or receive dividend payments in the future. However, if the business fails – as many businesses do – you will lose some or all of your investment.

Maydan checks all information and claims included in a company’s pitch before we allow the offer to open to investors. We ensure that each statement is fair, clear and not misleading. Where there are material statements of fact we require each company to provide evidence to substantiate the claim; or amend or remove statements.

We conduct due diligence on the company, its legal structure and its directors before we close an investment. Our investment team performs a number of key checks and searches on every company that raises on the platform, using a combination of public registers, third-party sources and information requested directly from the company.

For each investment offer, the minimum investment amount is decided by the company. This minimum is set as the company considers its funding needs, as well as the number and kind of potential investors.

Ethical & Shariah

Halal investing is investing in companies that are in line with Islamic principles of investing. Halal investing prohibits businesses that profit from certain activities, including alcohol, tobacco, gambling, pork, and weapons, among others.

Any product or structure certified as Sharia compliant means that the product has been reviewed by a Sharia scholar and that the product and structure end-to-end meet Sharia requirements.

Maydan, as a company, ensures that all contracts, processes, and decisions are taken in compliance with Islamic Ethics. 

No. The platform is open to all qualified investors, as neither business owners nor investors have to be Muslim. Maydan does not discriminate based on faith and anyone and everyone who qualifies can benefit from the ethical offering of Maydan.

All offerings on the platform have undergone screening for Shariah compliance.

Risk Statement

Investing on maydancapital.com involves risk, including the loss of all of your capital, illiquidity (the inability to sell assets quickly or without substantial loss in value), and it should be done only as part of a diversified portfolio.

The investment opportunities on wahedcapital.co.uk are not an offer to the public in any jurisdiction and are available only to registered members of the platform who have certified that they are eligible to invest. Any person who is not resident in the United Kingdom who wishes to view these investment opportunities must first satisfy themselves that they are eligible to do so under the securities laws and regulations applicable to them. This site does not constitute an offer of, or the solicitation of an offer to buy or subscribe for, any securities to any person in any jurisdiction to whom or in which such offer or solicitation would be unlawful.

Maydan Capital Ltd. is registered in England and Wales (Company No. 13451691), registered office: 5th floor East Lansdowne House 57, Berkeley Square, Mayfair, London, W1J 6ER, UK and is an appointed representative of Wahed Invest Ltd, an authorised and regulated firm by the Financial Conduct Authority: FRN 833225.