Dhaxle has a responsibility endeavors to ensure that businesses do not raise investor protection concerns - here's how we determine what company is eligible to raise for their projects on the platform.
Projects are submitted through the summary and impact investment pre-assessment form. Upon reception of an alert, Dhaxle staff launches a general review of the project indicators of viability and sustainability. The self-stated business description, financial and operation plans should be supported by evidence and verifiable records as well as substantial positive socio-economic and environmental impact alongside the financial returns for investors. Any unverifiable claim or uncertainty will disqualify the project offering.
Dhaxle must have a reasonable belief that each project that launches on the platform does not raise a risk of fraud. This does NOT mean that offerings are free of risk, or that Dhaxle or any other partnering entity endorses or recommends a particular investment, only that the offering and business owners behind it appear capable of managing investor funds and are not disqualified from conducting an offering under International, Federal or State Regulation Policies.
The Management cross-examination is the second step in the review process by Dhaxle. Our staff interacts with the project sponsor and owner through phone calls, emails, and assisting with preparation of documents. Dhaxle staff look out for potential warning signs. Examples that can result in Dhaxle denying a registration may include a lack of communication, missing or rounded financials, or concerning social media content and publicly disclosed reports.
Once the offering is reviewed by Dhaxle staff, the next step is to go through what is called a "Reputation Check" or "RC." The RC is a limited background check, conducted through our partnership with reputable public and private third parties, of a business and its project, its managers and officers, and any beneficial owner of more than 10% in the business. The RC primarily focuses on regulatory disqualification provisions, which automatically bar an issuer from raising under Regulation - a "Red Flag". The RC can also show other publicly filed information, such as liens or lawsuits, that could impact a business operations - a "Yellow Flag" that needs to be carefully addressed and cleared.
During the pre-assessment phase, if Dhaxle determines that the project is potentially viable but contents some yellow flags, our staff will suggest the use of supporting resources to clear those concerns. Our aim is to improve the project offering and attractiveness. The project sponsor or owner can be directed to existing resources on the platform or encourage to work with external resources such as consulting firms, auditors or public institutions to strengthen their project and its likelihood to get funded. When ready, we will launch the project on the platform.
Once a project offering is launched, Dhaxle continues to review any additional information as it becomes available, and reviews any negative information to determine if there is a protection concern or risk of fraud. While every offering contains risk, Dhaxle's staff works diligently to make sure that each offering's risks are properly disclosed.