Seed Crowd Funding Platform
Below is the outline of the crowd funding platform we're currently developing.
We will provide three types of crowd funding.
I Equity Crowd Funding
Investors buy a share of the company for a corresponding profit share.
A team of entrepreneurs want to raise £100,000 of seed capital to design and build a prototype electronic device. They are willing to give away 25% of the company to a group of seed investors.
Anyone who has at least £2,000 (for 1% equity share) liquid cash available and is happy to be a silent partner.
Seed (Buzra) will screen the project team for their aptitude, reliability and resourcefulness before approving the project. This will involve meeting the team face to face as well as going through a series of checklist to make sure the team is 100% investable. We will not approve a project in which we ourselves would not be willing to invest.
II Qard Hasana Crowd Funding
Investors loan their money without interest, and get it back in installments within a fixed period of time.
Setting up a community project to help the groups who fall in the zakat/ sadaqah categories. A £100,000 loan will be needed for 3-5 years to setup a shop front and goods collection and distribution service.
Anyone who is not ready to invest in a business but wants to make use of his/ her savings for good causes.
Seed (Buzra) will make sure the project leaders have assets to back their promise to return the money should the project fail or get delayed in its tracks. A formal contract will be signed before any money is transferred to the project leaders.
III Sadaqah Crowd Funding
Contributions go towards charitable causes such as a mosque, an Islamic charity or any other charitable causes.
A £50,000 fund is needed to redevelop the ablution and toilet area of a small mosque.
Anyone who wishes to donate his or her money fisabilliah (for the sake of Allah) in complete confidence.
Seed (Buzra) will make sure the project leader utilizes the entire money on the said project and gives the donators a monthly update on progress, including where the money was spent along with photos of the project. All donators will be invited to see the completed work on the day of the opening.
1. We are limiting all projects to be either located in UK or based in UK for the first few years.
2. All partnership contracts will be written in accordance with Shariah that are enforceable under English law.
3. Seed (Buzra) Investments can act as arbitrator in disputes using Shariah as the basis of resolving all issues.
4. Cash investments will only be possible through a law firm.
5. Seed (Buzra) Investments will not hold investors’ money in an escrow system. Instead all money will be directly transferred to respective bank account on project-by-project basis. This means we will not be required to be FCA (UK's Financial Conduct Authority) regulated.
Do you know anyone who might be interested in crowd funding?