Eureeca Limited

Company Overview: Eureeca DIFC Limited in the UAE

Eureeca DIFC Limited, often simply referred to as Eureeca, is a prominent equity crowdfunding platform operating from the heart of the Dubai International Financial Centre (DIFC) in the United Arab Emirates. Founded in 2013 by Chris Thomas and Sam Quawasmi, Eureeca holds a significant position as the first regulated equity crowdfunding platform in the Middle East and North Africa (MENA) region. Its core mission is to enable growth-stage companies, primarily small and medium-sized enterprises (SMEs) and pre-IPO entities, to raise capital through direct share offerings to a global pool of investors.

Unlike conventional financial institutions or peer-to-peer lending platforms, Eureeca operates on an equity-based model. This means companies offer ownership stakes, or shares, to investors in exchange for capital, rather than taking on debt. The platform's regulatory foundation is robust, licensed and overseen by the Dubai Financial Services Authority (DFSA) to conduct its crowdfunding activities within or from the DIFC. This licensing ensures adherence to stringent financial regulations, fostering a secure environment for both companies seeking funding and investors participating in opportunities.

Eureeca's business model is a reward-free, equity-based marketplace. Issuers, the companies seeking funding, list their investment rounds, typically ranging from USD 100,000 to USD 5 million. Investors, who can range from retail individuals and angel investors to institutional funds, can participate with a minimum investment ticket of USD 1,000. This approach democratizes access to early-stage investment opportunities for a broader spectrum of individuals while providing essential growth capital for promising businesses.

Equity Crowdfunding Model and Services

It is crucial to clarify that Eureeca DIFC Limited does not offer traditional debt or loan products in the United Arab Emirates. Its operations are strictly focused on facilitating equity investments. Any search for loan products, interest rates, or repayment schedules from Eureeca will be unfruitful, as these are not part of its service offering.

Instead, Eureeca specializes in:

• Equity Issuance: Companies list their funding rounds on the platform, allowing investors to purchase shares directly. These rounds can be denominated in local currency (AED) or USD, making them accessible to a global investor base. The platform's expertise lies in matching high-growth SMEs with investors looking for equity participation.
• Planned Secondary Market: Eureeca has ambitious plans to launch a secondary market by late 2025. This innovation aims to provide liquidity for investors by allowing them to trade their existing equity stakes. This development could significantly enhance the attractiveness of equity crowdfunding by offering a potential exit mechanism, which is often a challenge in private equity investments.

For companies, the process involves a thorough due diligence assessment by Eureeca's in-house team. This evaluation covers business plans, financial projections, corporate governance structures, market size analysis, and potential exit strategies. While companies receive risk ratings, these are distinct from traditional credit scores, as the funding is equity-based and carries inherent investment risks rather than debt obligations.

Investor funds are held in segregated client accounts at DIFC-licensed custodial banks, ensuring a layer of protection. Upon the successful closing of a funding round, the net proceeds are securely transferred to the issuer's corporate bank accounts via wire transfer.

Navigating the Eureeca Platform: Application and Technology

Accessing Eureeca's services, whether as a company seeking funding or an investor, primarily begins through its comprehensive website,

www.eureeca.com

For investors:

• Onboarding Process: The application process is entirely digital, adhering to DFSA-compliant Know Your Customer (KYC) and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) requirements. Potential investors submit identification documents, proof of address, and undergo biometric checks. Automated identity screening is supplemented by manual reviews for higher-risk profiles, ensuring compliance and security.
• Mobile App: While currently under development, Eureeca plans to launch dedicated iOS and Android mobile applications by the fourth quarter of 2025. These apps are expected to enhance user experience by offering convenient deal browsing, real-time portfolio tracking, and eventually, secondary market access once that feature goes live.

For companies seeking to raise capital:

• Application and Due Diligence: Companies apply through the platform and undergo a rigorous due diligence process conducted by Eureeca's expert team. This involves a deep dive into various aspects of the business to assess its viability and investment potential. It is important for companies to be prepared for a comprehensive review that can take between four to six weeks, a common point of feedback from past issuers.

Eureeca maintains a robust digital presence beyond its core platform, including an active blog featuring investor education materials and resources for companies. Its engagement across social media channels like LinkedIn, Twitter, and Facebook further expands its reach and provides avenues for community interaction.

Regulatory Framework and Market Standing

Eureeca DIFC Limited operates under a stringent regulatory framework, which is a cornerstone of its credibility. It holds a license from the Dubai Financial Services Authority (DFSA) to operate a crowdfunding platform within the DIFC, specifically for equity-based offerings. This license places Eureeca under the direct oversight of the DFSA, subject to its comprehensive rulebook, particularly Part 9, which governs crowdfunding platforms.

The company also possesses regulatory authorisations in other key jurisdictions, including the Financial Conduct Authority (FCA) in the United Kingdom and the Securities Commission Malaysia, reflecting its multi-jurisdictional reach and adherence to international best practices. Eureeca is subject to ongoing DFSA audits, and notably, there have been no public enforcement actions or fines recorded against Eureeca DIFC Limited, underscoring its commitment to compliance.

Consumer protection measures are integral to Eureeca's operations. These include mandatory risk disclosures, ensuring investors fully understand the inherent risks of equity investments, and providing educational modules. Furthermore, the platform implements strict AML/CFT controls and maintains segregated accounts for investor funds, offering an added layer of security and transparency.

In terms of market position, Eureeca stands as a pioneer, being the first regulated equity crowdfunding platform in the MENA region. It commands an estimated 35% market share among DIFC-licensed crowdfunding platforms. While competitors like Beehive (a peer-to-peer lending platform focusing on debt) and DubaiNext (a government-backed SME funding initiative) exist, Eureeca differentiates itself through its pure equity model, multi-jurisdictional regulatory approvals, and extensive global investor network. Its planned secondary market further aims to provide a unique liquidity advantage in the future.

The platform has facilitated funding for over 200 companies, attracting more than 45,000 investors from 72 countries. Its growth trajectory includes plans to list 5 to 10 issuers per quarter across EMEA markets and strategic partnerships with entities like the DIFC Authority and regional banks for escrow services.

Insights for Potential Participants

Given Eureeca's distinct equity crowdfunding model, the advice for potential participants differs significantly from that for traditional loan borrowers. Instead, we can consider advice for companies seeking capital and individuals looking to invest.

For Companies Seeking Capital (Issuers):

• Understand Equity Dilution: Raising capital through equity means giving up a percentage of ownership in your company. Be clear on the implications for control and future returns.
• Prepare for Rigorous Due Diligence: Eureeca's process is thorough. Ensure your business plans, financial projections, corporate governance, and market analysis are robust and well-documented.
• Anticipate Timelines: The due diligence process can take four to six weeks. Plan your fundraising timeline accordingly and be prepared for detailed information requests.
• Account for Fees: Eureeca charges a 5% success fee on funds raised and a 1% annual platform fee on active investments. Factor these costs into your funding requirements.
• Craft a Compelling Narrative: Your company's story, vision, and growth potential must resonate with a diverse investor base. High-quality pitch materials are essential.

For Individuals Looking to Invest (Investors):

• Grasp Equity Risk: Equity investments are inherently riskier than traditional savings or fixed-income products. There is a potential to lose your entire investment, and returns are not guaranteed.
• Understand Illiquidity: Investments in private companies are generally illiquid, meaning it can be difficult to sell your shares quickly. While a secondary market is planned, it is not yet operational.
• Mind Minimum Investment: The minimum investment ticket of USD 1,000 means a significant commitment for some retail investors. Diversifying across multiple opportunities can help mitigate individual company risk.
• Do Your Own Research: While Eureeca conducts due diligence, it is crucial for investors to perform their own research and understand the business, market, and risks associated with each opportunity.
• Long-Term Horizon: Equity crowdfunding is typically suited for investors with a long-term investment horizon, as it can take many years for companies to mature or achieve an exit event.

Eureeca DIFC Limited offers a valuable and regulated pathway for growth-stage companies in the UAE and beyond to access capital, and for a global investor base to participate in early-stage ventures. Its commitment to regulatory compliance and planned expansion into a secondary market positions it as a key player in the evolving landscape of alternative finance.