The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A Bahamian crowd-funding platform is “still learning the market” on a capital raise that has outpaced the next closest listing by 232 percent with 75 days left in its raise process.

D’Arcy Rahming Jr, ArawakX’s chief technology officer, told Tribune Business they haven’t done a “deep analysis” into Foot Care RX yet but they are seeing a “different type of investor” for the company compared to the other companies they have listed.

Dr Daniel Johnson, former cabinet minister and current chairman of the Gaming Board, owns Foot Care RX, a company dedicated to fighting foot-related trauma and diseases.

As a comparison on the ArawakX, Red Lobster raised $2,006,900 with 1,829 investors, and averaged $1,097.26 per investor over their raise period. Tropical Gyros, which launched their raise in June has raised $376,695 with 22 days left in their process with 739 investors buying in so far for an average of $509.73 per investor. But Foot Care RX raised $259,050 in just over two weeks with 71 investors for an average of $3648.59 per investor, something that is quite phenomenal.

Mr Rahming added: “Whereas with the Red Lobster and with Tropical Gyro, because their restaurants, everybody is their customer. So you’re seeing a different type of person invest, which is fascinating, right? People are finding value in the things that they use.”

In a press release, Mr Rahming also said: “We have even seen an interest from offshore funds that are not as risk averse as our local fund administrators. They typically allow ten percent for early-stage companies, which is why innovation flourishes in their societies. ArawakX’s goal is to bring innovative companies to market and close this gap.”

He continued: “What we have discovered is that the local Pension Funds tend to be the most conservative, because they are only allowed to invest in companies that have everything in place. It’s disappointing because the low-risk approach also means very low returns. We have also discovered that the High-Net-worth individual is more likely to be a business owner than a professional. Apparently, you can’t look at the way someone dresses and assume how much they will invest.”

“Another reason investors are taking a look at us is our high standards when it comes to how companies are chosen. This is backed by our very strong anti-money laundering standards. Proper markets that serve people in their community, by empowering companies, that create jobs, transparently is the exact opposite of money laundering.”

He added: “Where money laundering happens is in cash based businesses that don’t have the level of transparency. We have a full compliance officer that ensures that all of the processes and procedures and all of the investors have to go through a thorough background check.”

Dr Johnson also told Tribune Business that “the demand is so great” in the hospitals around the Caribbean that he could not meet the demand without this capital raise through ArawakX for the ten units he plans to establish with the money raised.

Startled by his company outperforming the other listed companies on the ArawakX platform by over 200 percent, Dr Johnson said: “The response has just been enormous.”

Dr Johnson is touring Freeport now and will be off to Abaco thereafter, “International people have been calling now but I haven’t had time to answer any requests. But we are going to sort ourselves out in The Bahamas first. I am humbled by it and my team is excited.”