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Popular Questions about investing on Fundnel

Knowledge Centre

Only institutional and accredited investors will be able to invest on the deals listed on the Fundnel platform.

Explained by:
WanHsi Yeong General Counsel & Compliance Officer

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As described under Section 4A of the Securities and Futures Act, an institutional investor is:

i. a bank that is licensed under the Banking Act (Cap. 19);

ii. a merchant bank that is approved as a financial institution under Section 28 of the Monetary Authority of Singapore Act (Cap. 186);

iii. a finance company that is licensed under the Finance Companies Act (Cap. 108);

iv. a company or co-operative society that is licensed under the Insurance Act (Cap. 142) to carry on insurance business in Singapore;

v. a company licensed under the Trust Companies Act 2005 (Act 11 of 2005);

vi. the Government;

vii. a statutory body established under any Act;

viii. a pension fund or collective investment scheme;

ix. the holder of a capital markets services license for:

a. dealing in securities;

b. fund management;

c. providing custodial services for securities;

d. real estate investment trust management;

e. securities financing, or;

f. trading in futures contracts

x. a person (other than an individual) who carries on the business of dealing in bonds with accredited investors or expert investors;

xi. the trustee of such trust as the Authority may prescribe, when acting in that capacity, or;

xii. such other person as the Authority may prescribe
Explained by:
WanHsi Yeong General Counsel & Compliance Officer

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Regardless of which jurisdiction you reside in/are a nationality of, in order to be considered as an accredited investor able to invest through Fundnel, you must at minimum meet the following requirements:

As an individual

i. Net personal assets exceeding S$2 million in value, or its equivalent in a foreign currency, or;

ii. Income in the preceding 12 months of no less than S$300,000 (Singapore Dollars Three Hundred Thousand), or its equivalent in a foreign currency.

As a corporation

You must hold net assets exceeding S$10 million in value (or its equivalent in a foreign currency) as determined by:

i. The most recent audited balance-sheet of the corporation; or where the corporation is not required to prepare audited account regularly, a balance sheet of the corporation certified by the corporation as giving a true and fair view of state of affairs of the corporation as of the date of the balance sheet, of which the date shall be within the preceding 12 months; or

ii. A corporation, the sole business of which is to hold investments and the entire share capital of which is owned by one or more persons, each of whom is an accredited investor.

  • Note that your status as an accredited investor will give you access to all active deals on Fundnel.
Explained by:
WanHsi Yeong General Counsel & Compliance Officer

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We are continuously working on measures to improve our deal screening and onboarding processes. We carry out mandatory company incorporation, financials, and management team and shareholder/director checks at the earliest stage that allows us to identify issues and complete information collection requirements earlier in the process.

This process is carried out by our own internal team of investment analysts who review and require substantiation of all material facts raised by an issuer. In addition, we do not spare any effort in insisting that issuers appoint independent auditors, conduct their own commercial due-diligence, and/or engage market research firms to substantiate their assumptions and claims in their financial projections and business plans.

Finally, we regularly monitor the health of our stable of "funded" deals that provide us with early warning to any potential issues that may arise post-funding.

As described earlier, our thorough deal analysis and investor anchoring process has historically meant that a low 3% of deals get funded as investors understand that there are real risks associated with private investments.

We ensure that our investment opportunities carry prominent risk warnings and that all statements made in the issuer’s investment deck are fair, clear and not misleading. We will continue to review our screening and evaluation processes to minimise risks to investors and to the reputation of our platform. We do not take the trust from our investors for granted and work hard to maintain it.

Explained by:
Khai Lin Sng Co-Founder & CFO

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The minimum investment size, or ticket size, of each deal on Fundnel reflects the balance between a company's interests and potential investors' appetites; as such, you currently may not make an investment under the defined minimum amount.
Explained by:
Benjamin Twoon Co-Founder & COO

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Our network of investors includes both professional investors – corporate venture, private equity, venture capital funds, family offices, angel investor networks – and of course individual investors who are keen to gain exposure in private investments alongside professional institutional investors.
Explained by:
Khai Lin Sng Co-Founder & CFO

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Fundnel does not guarantee returns for investment-based deals. All investments come at a risk which we mitigate with our vetting process, but the final decision to invest ultimately lies with the investor. In the case of secured and guaranteed investments (as is the case typically with bond deals), the guarantee is offered directly to you by the business owners of the companies.

It is important to understand that some investments may take years to realise returns. Private investments are risky and in extreme cases, an investor may lose the entire investment amount.

Explained by:
Khai Lin Sng Co-Founder & CFO

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