OnMarket undertakes good fame and character checks on directors, checking the company is eligible to undertake an equity crowdfunding offer, ensuring that the offer document contains the minimum level of information required, removing non-compliant offers, keeping investors’ money safe in a trust bank account, enabling investors to exercise their cooling off rights, and ensuring all investors are made aware of the risky nature of equity crowdfunding investments.
We do not undertake commercial, legal or operational due diligence on CSF offer documents in the systemic manner that has become market practice for prospectuses. The reason for this is that conducting due diligence to that extent is a lengthy exercise and would defeat the purpose of having a lower cost method for early-stage companies to raise capital.
Consequently, it is important to note that you are relying on the directors of the company raising the capital, and not OnMarket, to ensure the offer document is accurate and not misleading.
For detailed information on OnMarket’s gatekeeper commitment, click here.