CROWDFUND PLATFORM SET TO ADDRESS PLEDGE DIFFERENCE

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

THE ARAWAKX crowdfunding platform is upgrading its website to address the difference between what is pledged by investors and the actual amount a company raises from an offering.

D’Arcy Rahming Sr, ArawakX’s chief executive, told Tribune Business that the company’s website and entire system are presently “down for an upgrade” as they seek to make them more user friendly for both investors and listed companies. One of the issues set to be addressed is the difference between what a company raises from a crowdfund offering as opposed to what investors pledge, or promise, to invest. ArawakX’s website presently shows the total pledges made, which are typically much higher than what a company receives when its offering closes, because often-times investor promises do not translate into actual investments or, if they do, only partial investments. Amid concerns that this can give a misleading impression of crowdfunding