The Investment Commitment and Closure Process

Before you read this, we suggest you check out our other Learn Page article, How Fundraisers Offer Investments through the Platform, to get a better understand of what crowdfunding campaigns are and how they allow you to make investments. 

 

Investor Eligibility & Registration

Businesses that ask you to trust them with safekeeping your investment funds take on a big commitment of responsibility to you. 

Similar to a bank and almost exactly like a stockbrokerage, Round One requires you to register a personalized investment account with us before making cash and investment transactions. Your personalized account obligates us, the intermediary, to maintain the safety and accuracy of your portfolio.

The main requirement to register with our platform should be pretty familiar- a customer account information form that requests personal and financial information about you- the account's beneficiary/beneficial owner. Additionally, a separate agreement (the Crowdfunding Cash Account Form) that covers how we manage and maintain your personalized investor account.

We're a new type of investments channel, a Philippines' first, if you will- so there will be additional legal agreements that ensure you understand your responsibilities, rights and undertakings as a crowdfunding investor. There is also a requirement for us to determine if you are a qualified or a non-qualified retai investor. You must also submit your annual tax returns for us to determine your investor limits. You may access these agreements via your personalized account dashboard under the Legal Agreements section of your profile. Signup is completely free. When all information has been submitted, allow our onboarding specialists to review your account information prior to verification and approval.

The process can be accomplished online, but there are additional requirements to register if:

• 1. You are an Institutional or Corporate Investor Account
• 2. You require or would like to apply for Qualified Investor/Qualified Buyer Certification*

*Round One's financial intermediary parent, Eastern Securities Development Corporation is a registrar licensed by the SEC to issue such certifications.

 

Payments for Securities

For more information about how to make payments, please visit our FAQ page topic on Payments

When you've fully registered your investor account with us, you are now eligible to deposit funds into your Round One investment portfolio and start making investment commitments. Currently, we accept forms of payment ranging from wire transfers from international banks, domestic fund transfers, cash and check deposits. You may inquire directly through treasury@eastern-sec.com regarding special handling for domestic fund deposits in excess of Php 500,000.00.

Please ensure that you use the "Add Balance" form via your personalized account when completing fund deposit transactions, this indicates to us that you have made a deposit and to subsequently verify said deposit. The "Withdraw Balance" form is the method by which customers may request payment of their portfolio funds to your personal bank accounts. Please note that we are prohibited from making payments from yourt account to any third parties, payments from your account will be payable only to you, the account's registered beneficiary.

Any funds deposited through our parent intermediary, Eastern Securities Development Corporation are safekept with our partner banks to ensure ease in monitoring and facilitating investment commitments, cancellation related refunds, withdrawals and other cash-related requests.

 

Investments in Offers and Campaigns

Now that you have your registered account and a portfolio full of funds, you can get on with the fun part: making investment commitments. Navigate around our platform or access a direct link to an fundraiser's "Profile" page.

A fundraiser's Profile page has all the details you'll want to see before making an investment decision. The first section of this Profile is a quick snapshot of the company, while the latter sections provide deeper details about the company or venture's business prospects. If you want to know more or seek clarification, every fundraiser has a Discussion section, a place where you can pose questions and interact directly with the fundraising team. If you end up liking what you see, fundraisers with live campaigns will have a campaign progress bar with an "Invest" button at above it.

Clicking through and entering investment commitment details will result in you making a pledge, what we technically call an "investment commitment", to a fundraiser's full fundraising target. Pledges and commitments are not final purchases of securities, they simple signal your intention to invest when the fundraiser reaches their target and their campaign deadline concludes. You can change your mind, cancel and withdraw your pledge any time (up to 48 hours before a deadline concludes.) Purchases are finalized only when a campaign's deadline lapses. 

The fundraiser's campaign progress bar will also show other information such as percentage-funded to-date, how many days remain in a campaign, as well as their total fundraising target. You will also recieve important notifications regarding campaign progress in your Round One inbox and email when you make an investment commitment.

Related: 

• Where does my money go after I make a commitment?

 Please note there are annual limitations on the amounts a non-qualified investor may invest:

• 1) Non Qualified/Retail Investors with income of up to Php 2,000,000.00 (Two Million Pesos) per year may purchase securities through Round One at a maximum value of 5% of their total income per year. 
• 2) Non Qualified/Retail Investors with income of more than Php 2,000,000.00 (Two Million Pesos) per year may purchase securities through Round One at a maximum value of 10% of their total income per year.

Qualified Investors are not subject to these limits.

Related: 

• What is the difference between “retail” and “qualified” investors?

 

Investment Commitment Cancellations 

For the duration of the campaign (we've seen campaigns as short as a few weeks and as long as a few months), up to 48 hours before a campaign closes, an investor can pledge, (make investment commitments) increase, decrease or cancel their commitments. After 48 hours leading up to a campaign's indicated deadline, investors can no longer cancel or decrease their pledges, investors may only make additional commitments. Securities are deemed final purchases by investors at the time of the campaigns deadline. Managing your commitments is simple- either click on any active commitment through your dashboard and click the cancel/modify action, or navigate to your Portfolio and do the same.

Related: 

• Can I make changes to my investment commitment?
• Can I cancel my investment and get a refund?

 

Cancellations will credit your commitments back to your portfolio balance, after which you may withdraw them any time, at your convenience using your dashboard's "Withdraw Balance" form. As an Investor, you will receive regular notification of deadlines, commitments, and related-campaign progress. Should you encounter any difficulties in canceling your commitment, please contact info@roundone.ph or compliance@eastern-sec.com with your issue. 

Automatic cancellations may occur when a fundraiser terminates their campaign. Campaign terminations and modifications don't always happen, but can happen due to for instance, material adverse business conditions affecting the fundraiser or changes in their fundraising strategy. In the event of a campaign termination, committed investors will recieve a notice of the termination and full refunds. In the event of a material or major change to a campaign's offering, we may request investors to reconfirm their investment commitments. Unconfirmed investment-commitments will be automatically cancelled 48 hours prior to a campaign indicated deadline.

Related: 

• Can campaign details be changed after it goes live?
• What happens if a campaign is terminated?

 

The Investment Process in a Nut Shell 🥜

• 1) Fund your Round One Portfolio by making a Deposit at any one of our partner banks
• 2) Making an Investment Commitment debits funds from your Portfolio Balance 
• 3) Cancelling an Investment Commitment refunds the commitment back to your Portfolio Balance 
• 4) Withdraw Funds from your Round One Portfolio back into your personal bank account.

 

Issuance of Securities: After a Campaign

When a campaign successfully concludes, meaning it has reached its 100% fundraising target and its indicated deadline has elapsed, investors who have committed funds shall become owners of the securities/instrument that the fundraisers has offered through their campaigns. 

The form of ownership of securities will be stipulated in campaign closing documents such as the share purchase agreement or subscription agreement. The fundraiser will be directed to sign such agreements for the purposes of concluding the campaign and recieving their campaign funds. After which, records of securities ownerships will be finalized for committed investors.  

Related: 

• What happens after a campaign ends?
• What is an oversubscription and how does it work?
• Where can I find documentation that indicates my ownership of securities?
• When and what kind of updates can I get from a fundraiser after a successful campaign?

 

The Investment Process in a Nut Shell 🥜

• 1) An Investor decides that they want to invest in a great company that's fundraising on Round One. 
• 2) The Investor registers or has registered a verified, personalized investor-account with with Round One.
• 3) The Investor funds their investor account via our platform payment instructions
• 4) The Investor reviews the Fundraiser's investor presentation, company details and offering and thinks it's neat.
• 5) The Investor makes an investment commitment to the fundraiser's campaign by clicking on the Fundraiser's page Invest button and entering in their commitment amount.
• 6) The Investor can change or cancel their commitment up to 48 hours before the campaign deadline, all the while checking out any updates the Fundraiser has made on their page or participating in discussions.
• 7) The Campaign hits its target and the deadline elapses.
• 8) Round One verifies and finalizes all commitments with the Fundraiser, officially closes the Campaign.
• 9) The Fundraiser signs and accomplish various closing documents related to Campaign closure
• 10) Round One gives the Fundraiser their fund and records ownership of the corresponding investors.

 

Risk Warnings

Crowdfunded investments are alternative investments and are thus generally considered high risk and speculative in nature. You are likely not to recieve dividends or regular income from such investments. There is a substantial chance that you may lose the entirety of your investment.

Fundraiser and campaigns listed or eligible for listing on the Round One platform are not endorsements by Round One regarding investability and may not be construed as financial advice. We caution you to speak to your financial advisor on how to best allocate your portfolio based on your needs and objectives.

For additional information, check out our Risk Warnings. 

 

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⚠️ IMPORTANT NOTICE ⚠️

Under no circumstances will a Round One representative personally and directly solicit, undertake to solicit, or accept or undertake to accept funds in connection with any campaign on the Round One platform in their name, of, or on behalf of any platform user. To duly ensure this, all deposits for Round One-related activity shall be made in favor of Eastern Securities Development Corporation—Round One's responsible and official, licensed intermediary—with any of its corporate bank accounts indicated on this website. Instructions for processing payments and functions related to making investment commitments are contained within every user's Dashboard.

Queries related to funds and fund transfers, refunds, deposits, and withdrawals may be made directly to: info@roundone.ph or treasury@eastern-sec.com.