NASSAU, BAHAMAS — ArawakX’s research on its investor data has revealed an increased interest from institutional investors and high-net-worth individuals.
“We have even seen an interest from offshore funds that are not as risk-averse as our local fund administrators,” said D’Arcy Rahming Jr, Co-Founder of ArawakX.
“They typically allow 10 percent for early-stage companies which is why innovation flourishes in their societies. ArawakX’s goal is to bring innovative companies to market and close this gap.
“What we have discovered is that the local Pension Funds tend to be the most conservative, because they are only allowed to invest in companies that have everything in place” said Rahming Jr.
“It’s disappointing because the low-risk approach also means very low returns. We have also discovered that the high-net-worth individual is more likely to be a business owner than a professional. Apparently, you can’t look at the way someone dresses and assume how much they will invest.”
“Another reason investors are taking a look at us is our high standards when it comes to how companies are chosen. This is backed by our very strong Anti-money laundering standards. Proper markets that serve people in their community, by empowering companies, that create jobs, transparently is the exact opposite of money laundering” said Rahming Jr.
To ensure the integrity of both investors and issuers, there are very strict rules and policies enforced by the Securities Commission of the Bahamas in line with international standards. ArawakX has an active compliance department with a full-time, anti-money laundering officer. The companies and their Founders go through a robust vetting process where a scorecard built on best Venture Capital methods is used in the evaluation before listing.
There are different levels of scrutiny depending on an individual’s past positions and current income. For example, Politically Exposed People (P.E.Ps) and their relatives undergo more rigorous vetting because of who they are.
“The market is not what we thought it was,” said Rahming Jr.
“We are learning the market and we have learned that the appetite for investing in our crowdfunded products cuts across all racial and economic lines. This is true to our core ethos of financial inclusion.”
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