FAQs

WHO WE ARE

What is Unkapt?

Unkapt is an alternative lending marketplace, which provides businesses with an opportunity to raise capital from 'accredited' Investors by using non-equity instruments, and concurrently provides 'accredited' Investors with the opportunity to have access to a wider range of investment opportunities and increase their deal pipelines.

Is Unkapt a form of crowdfunding?

Unkapt may be considered to form part of the broader crowdfunding family. However, Unkapt differs from typical crowdfunding marketplaces in that: 1) it does not target the public at large; and 2) it is not opened to retail investors. Unkapt can be categorised as an institutional lending marketplace.

WHO IS IT FOR

Which businesses can make an Offer on Unkapt?

Unkapt has positioned its marketplace for small to lower middle market enterprises. Given the type of financing instruments that can be offered on Unkapt, businesses should generally have been operating for several years and will have enough cash flow to service the financing instruments. However, Unkapt is also open to considering project financing project or other ‘brown field’ projects where there is revenue certainty in the foreseeable future.

Why should a business use Unkapt?

Unkapt provides businesses with access to a range of 'accredited' Investors and an avenue to make private placement, which is not necessarily available to small to lower middle market enterprises. In addition, Unkapt allows Investees to use innovative non-equity and non-dilutive finance instruments to structure their capital raising to cater for their requirements.

What sectors are on offer on Unkapt?

Unkapt is sector agnostic and is available to traditional and non-traditional businesses. Unkapt is also putting its emphasis on thematic investments such as cleantech, health tech, ICT and impact investing.

Who can invest on Unkapt?

Investors who can participate on Unkapt are investors who are not mandatorily required to be provided with an offer disclosure document (for instance prospectus or product disclosure statement). Classification of these investors differ from jurisdiction to jurisdiction but these investors are generally referred to as sophisticated, accredited, professional, wholesale and/or institutional investors. For Unkapt purposes, these investors will be collectively referred to as 'accredited' Investors. This includes high net worth individuals, banks and private debt funds.

Unkapt is NOT available to the general public at large.

What are the main risks of investing on Unkapt?

The main risks for ‘accredited’ Investors include: 1) partial or complete loss of investment funds; and 2) illiquidity, which may not provide ‘accredited’ Investors with an impromptu exit. It is highly recommended that ‘accredited’ Investors carry all necessary due diligence and seek independent advice before proceeding with an investment.

HOW IT WORKS

What kind of financing instruments can Investee issue on Unkapt?

Unkapt positions itself as an alternative lending platform and therefore Investees can use debt or hybrid financing instruments to raise capital (i.e. financing instrument other than pure equity instrument) as long as these financing instruments are legally/regulatory compliant in the issuing jurisdiction as well as in any otherjurisdiction(s) where the Offer is being made. The onus is on the Investees to adhere with the relevant provisions of the securities laws and regulations as applicable and any other relevant laws.

Unkapt is looking at trialling corporate bonds, revenue entitlement notes™ and demand dividend financing instruments on its platform but it is open to other innovative financing mechanism.

What is the legal and tax treatment of the financing instruments on Unkapt?

Unkapt does not provide legal and tax advice nor does Unkapt provide any guarantee to Investees and Investors that the Offers made on Unkapt are legally/regulatory compliant. Investees should seek their own independent legal and tax advice and Unkapt may require Investees to produce such advice before an Offer is made to Investors. Investors should undertake their own due diligence, including legal due diligence on the financing instrument.

What are the terms of an Offer made by an Investee?

Unkapt takes the approach that the Investee will propose its own terms when it opens an Offer on Unkapt; however, terms are generally subject to negotiation between the Investee and the Investor(s) and these terms may subsequently differ. It is up to both parties to reach an agreement on the investment terms if they want to proceed and close the deal.

Which jurisdictions is Unkapt available in?

Unkapt is a cross border lending marketplace in that it is looking at targeting Investees and Investors regionally. Initially, Unkapt will concentrate on servicing the APAC market, predominantly the ASEAN region and subsequently Australia and New Zealand. However, this is subject to any restriction that may be imposed on offer of securities, platform regulation and/or financial services licensing.

Is there a minimum or maximum amount that can be raised on Unkapt?

Subject to Unkapt discretion, the minimum capital raising is USD 1 million. There is no ceiling capital raising amount although the expectation is for the small to lower middle market enterprises to participate on Unkapt.

What fees do you charge businesses to use Unkapt?

An Administration Fee is required for Investees to publish an Offer on Unkapt. The Administration Fee is to cover our time, including liaising with you and reviewing the Offer and submitted materials, to ensure the Offer is compliant with Unkapt standards before the Offer is finalised and open to Investors.

If an Investee is successful in raising funding, the Investee must pay a Completion Fee. The Completion Fee varies depending on the amount raised.

Goods and services tax or any other similar taxes may be applicable to the above Administration Fee and Completion Fee and will be payable in addition to these Fees.

Investees can refer to the Fee Particulars on the Resources page, which can be accessed once the Investees have become Registered Users and prior to completing their full Offer application.

What fees do you charge 'accredited' Investors?

Our fee model is only sell-side driven and therefore 'accredited' Investors are not charged any fees for using Unkapt. In addition, ‘accredited’ Investors should note that we do not offer financial advice (including investment recommendation) and therefore there is no investment fee or trailing commission charged.

RISK WARNING

Investing in small to lower middle market businesses is highly speculative and carries high risks (including illiquidity and loss of investment). Unkapt is targeted exclusively at financially sophisticated investors that understand these risks. Investment decision should not be made solely on the information provided on Unkapt and before investing in any business about which information is given, prospective investors are strongly advised to seek detailed information and take appropriate professional advice.