Terms of Service
This Agreement sets out your and our rights and obligations with respect to your membership of KarenCrowd and use of the platform. Some of the provisions apply to all KarenCrowd members, others apply only to KarenCrowd members to the extent that they act as investors, others apply only to KarenCrowd members to the extent that they act as entrepreneurs and others apply only to KarenCrowd members to the extent that they act as Mentors. Please read these terms carefully, and we strongly advise you to keep a printed or electronically stored copy of this Agreement for your future reference.
2. Relationship to Other Agreements
3. Agreement change
You represent and warrant that you are fully able and competent to enter into the terms and conditions set forth in this and other agreements on the Site, and that all registration information you submit is accurate and truthful. In executing this Agreement, you warrant to us that you meet this criterion. You may only become a member of KarenCrowd.com once. You may not attempt to create multiple memberships for yourself by using different email addresses or other identifying information.
5. Member Conduct
• You agree not to post any material that is obscene, lewd, lascivious, pornographic, contains nudity or visual depictions of sexual acts, excessively violent, harassing, or otherwise objectionable;
• You agree not to post any Content that violates any copyrights, patents, trademarks, trade secrets, or any other intellectual property rights of others, or any Content that violates any law;
• You agree not to post any Content that disparages any third-party or KarenCrowd;
• You agree not to post any Content that you know is false, misleading, or inaccurate;
• You agree not to use the Site in any unlawful manner, including the posting of libelous, defamatory, scandalous, threatening, harassing or private information without the permission of the person(s) involved, or posting content that is likely to cause emotional distress;
• You agree not to post any Content that constitutes unsolicited or unauthorized advertising or promotional material or any junk mail, spam, or chain letters;
• You agree not to introduce any malicious software, viruses, worms, Trojan horses, or other harmful code on the Site that are designed or intended to disrupt, damage, limit, or interfere with the proper function of any software, hardware, or telecommunications equipment or to damage or obtain unauthorized access to any system, data, password, or other information of KarenCrowd or any third party;
• You agree not to impersonate any person or entity, including any employee or representative of KarenCrowd;
• You agree not to circumvent any security-related features of the Site, including those designed to limit copying or reproduction of the Content;
6. Project Process
In order to seek capital for a business through the platform you will need to follow the process set forth in the "Your Project" section of the platform. This process requires you to provide answers to a series of questions about your business, along with evidence to support certain of those answers, and it also allows you to upload certain video and other files if you so choose. You will also be able to establish how much capital you are seeking for the business, and what percentage of the business's equity you are offering in exchange for that capital. The project will stay active for a specified period of time based on the information you have provided. When you create a Project, you will be designated the "lead entrepreneur" with respect to that business. This means, among other things, that you will be the main contact person with respect to the project, you will be required to disclose certain information about yourself as part of the project process. If there are other members of your team whom you wish to include in the project, you will be able to do so as part of the project process. Upon completion of an investment, the investee company will be required to designate someone, who may be you or another KarenCrowd member who is affiliated with the business, as the lead entrepreneur for the purposes of contact between the business and us and between the business and its investors. Once you have completed the process, we will review your project. The purpose of this review is to ensure the business meets the eligibility criteria based on the country of company incorporation, as well as to allow us to conclude that the project is "fair, clear and not misleading". We may ask you to make modifications to the project or to submit additional evidence, and we may decide to not approve the project for any reason or no reason. If we approve a project, investors will be able to review the project and make an investment. If the business receives all the investment it is seeking and we complete our legal due diligence process, the investee company will be asked to execute a Subscription Agreement. You may create a project for more than one business, and you may have multiple projects active at one time. In order to create an additional project, you will need to repeat the process of project design. Once you have created a project, it will be available to you in the "Your Projects" section of the platform, and you will be able to see information about investment that has been committed to the business through the platform. If the investment is completed, it will continue to be listed in the "Your projects" section, and through that section you will be able to provide information and conduct certain activities on behalf of the business.
7. Termination of Membership
If you no longer wish to be a KarenCrowd member, you may terminate your membership at any time by notifying us. We may terminate your KarenCrowd membership at any time and for any reason or no reason. If we reached information pursuant to this agreement states or leads us to believe that you are no longer eligible to be a KarenCrowd member, we may suspend your KarenCrowd membership until we determine that you are again eligible to be a KarenCrowd member and you will no longer be able to seek capital or make investments through the platform. If you already invested in a project, you may be notified that you have a limited period of time in which to cancel this investment .After which time we will not be responsible for the investment you have made and canceling it. If you have created a project that is still active at the time of such termination or suspension, it will be terminated. After termination or suspension you will be able to continue to access the platform in order to engage in the post-investment process for any investment you have made or business for which you have raised capital. If we receive proof of your death that is satisfactory to us, we will terminate your KarenCrowd membership. If at such time you still have investments listed in the "Portfolio" section, we will handle them as set forth in the relevant Investment Agreement. If you still have businesses in which investment has been completed listed in the "Your Projects" section, each such business will be required to replace you as the lead entrepreneur.
8. Quality Standards
KarenCrowd.com to post on the Site meet certain standards to ensure the quality of its platform and the integrity of its social network. To this end, you understand that materials submitted must:
• Contain all required fields and data;
• Be presented in a professional manner with visual clues and professional formatting;
• Not contain any untrue statement of a material fact or omit to state a material fact;
• Not contain any confidential information;
• Contain clear data presentation;
• Present a complete and accurate view of the company;
• Present a complete and accurate view of the Raise;
• Present a complete and accurate view of the team, mentor and investors;
• Have an updated company profile on KarenCrowd.com;
• Have founders and team members with full profiles;
• Use proper grammar, punctuation and spelling.
Upon logging onto the platform you will be able to view the businesses available for investment. You will initially see summary information about the businesses that are currently seeking capital through KarenCrowd.com. You can click through any project summary to see additional information about the business. The detailed project is the information upon which you will make an investment decision with respect to the business. All projects on the platform are created either by a KarenCrowd member acting as an entrepreneur or by us. When you choose to make an investment through the platform, you will have all the legal documents post project success in the legal entity or arrangement that operates the business which we refer as an "investee company". Also after logging into the platform you will be able to access a section called "Portfolio" which shows your history as an investor with us. When you make and pay for an investment through the KarenCrowd platform, the amount of money you have invested will be transferred to KarenCrowd till the last moment of relevant project. For the period between when you make the investment and when it is completed, the money is still available for you to withdraw but once the investment is completed, the money will be transferred, along with the money committed by other investors, to the investee company. You may cancel your investment on any project before its deadline but you will not receive all your money back. In the case of some investments, you may have cancellation rights for a specified period of time before the deadline of the project. If your exercise a right to cancel under such Investment Agreement, we could not be able to refund 100% of the amount of your investment to you. KarenCrowd.com reserves the right to take a 5% of it to cover transaction, administration, tax, etc. costs.
11. Investments general condition
• You will use your own judgment before making any decision to invest or to accept an investment involving what is to you a material amount of money.
• You will be solely responsible for complying with applicable law regarding any transaction based on your country lows.
• You understand and acknowledge that KarenCrowd is not a registered broker-dealer and that it cannot and do not offer investment advice.
• Do not use KarenCrowd to market services.
• You acknowledge that you are solely responsible for conducting due diligence on a potential investment.
• Founders acknowledge and accept that as part of building a robust business community, KarenCrowd needs to ensure that it is the most appropriate crowdfunding solution for Users. For a variety of reasons, there are certain business segments that are difficult for the KarenCrowd to assess, and therefore, KarenCrowd will not support on the Site. Therefore, companies related to or offering guns, firearms, tobacco, cigarettes, pyramid marketing, gambling, contests, raffles, or any illegal activities shall not be permitted on the Site. KarenCrowd only supports for-profit companies. KarenCrowd may not support Companies or Raises or businesses that are simultaneously running crowdfunding projects on other crowdfunding platforms.
• KarenCrowd does not guarantee the completion of any Raise stated to be undertaken by any Company or warrant the outcome or success of any Raise or any Company.
Depending on your individual tax position and your country of residence, you may be liable to pay taxes on any investment you did or gains you received from your investments. Payment of these taxes is entirely your responsibility, and we will not deduct or withhold any taxes for you or provide you with any statements or information with respect to your tax liability other than the information about your KarenCrowd accounts and investments. In addition, in your country of residence you may have regulations and rules for certain tax reliefs on investments you make through the KarenCrowd platform, so obtaining the information about availability of any such reliefs will be your responsibility.
Acting as an investor does not preclude you from also acting as an entrepreneur, either contemporaneously or at a different time. In the event that you choose to act both as an investor and as an entrepreneur, the provisions of this Agreement relevant to investors will apply to you to the extent that you are acting as an investor, and all the terms and conditions relevant to entrepreneurs will apply to you to the extent that you are acting as an entrepreneur. Although an investor your activities on the platform will be totally free, but as an Entrepreneurs this fee is 5% of the amount raised by the relevant business through the platform. This means that when a business raises a given amount of money as investment, we will deduct a proportion of that amount as our fee, and the investee company will therefore receive less than the amount it raised.
If you have questions about the terms of Service or would like to suggest improvements, please contact us at info@KarenCrowd.com.