Table of Contents
Introduction
RockRaise is an online platform for crowdsourcing finance that intends to bring together investors and resource and mining businesses who are looking for capital. The platform has lately been under investigation because of questions raised about the credibility of the company’s CEO, Boris Kogan, as well as the business’s operations. This article will cover the concerns that have been brought up as a result of the RockRaise assessment, as well as the ramifications that these concerns have for investors and mining businesses.
History of the RockRaise Organization
In 2019, RockRaise was established as a platform that enables investors to finance firms involved in the mining and resource industries. The platform enables businesses to establish a project page, choose a financing target, and provide investors with incentives in exchange for their financial support. Investors can explore initiatives and invest in those projects, with a minimum investment of $250, in which they are interested.
In the past, RockRaise has been criticized for failing to do enough due diligence and transparency checks when determining whether or not the businesses that it lists on its platform are legitimate. The validity of the firm’s Chief Executive Officer, Boris Kogan, came into question in November of 2021, which led to the increased examination of the company.
Concerns Voiced in Response to the RockRaise Review
The evaluation of RockRaise that was carried out by Invest in Australia revealed several concerns concerning the operations of the firm as well as the credibility of its CEO.
Boris Kogan
According to the findings of the investigation, Boris Kogan, who serves as CEO of RockRaise, has a history of participation with businesses that have been the target of regulatory action, been put into liquidation, or declared bankrupt. In addition, the investigation discovered that Kogan had used several identities throughout his life and had been engaged in a variety of legal conflicts.
According to the evaluation, Kogan exaggerated his academic background by saying that he had earned a doctorate in geology from the University of Moscow. The assessment concluded that this assertion was not supported by any evidence, and Kogan eventually revealed that he did not have a Doctorate.
According to the findings of the investigation, Kogan had also promoted RockRaise and its initiatives by making misleading statements and using fraudulent promises. For instance, Kogan said that RockRaise had previously collected millions of dollars for various mining and resource firms while, in reality, the platform had only brought in a small portion of that total sum.
Due Diligence
The assessment brought up further issues about the due diligence techniques that RockRaise uses to evaluate the legality of the businesses that are listed on its website. Based on the findings of the investigation, it was determined that RockRaise had not effectively confirmed the identity and history of certain firms, nor had it carried out appropriate checks on the companies’ current financial and operational state.
The examination also found that several of the firms that were listed on RockRaise’s platform had a previous history of being subject to regulatory action, going bankrupt, or liquidating their assets. This gave rise to worries over the risk posed to investors as well as the quality of the projects that were offered on the platform.
Consequences for Both Investors and Mining Businesses
The assessment conducted by RockRaise raises several concerns that have repercussions, not just for investors but also for mining firms.
Investors Who Have Invested in Projects Listed on RockRaise’s Platform Investors who have already put money into projects that are published on RockRaise’s platform may run the risk of losing their money. According to the findings of the review, some of the businesses that were listed on the platform had a previous record of being subject to regulatory action, having their assets liquidated, or declaring bankruptcy. This raises questions about the companies ability to keep their promises and repay investors.
Investors may also be worried about the credibility of RockRaise’s chief executive officer (CEO) as well as the precision of the information that is supplied by the firm. Based on the findings of the assessment, it seems that Boris Kogan has promoted RockRaise and its projects via the use of false statements and misrepresentations, which calls into doubt the legitimacy of the firm.
Mining Companies
The concerns that were brought up by the examination of RockRaise might potentially affect mining and resource firms that are looking for investment. Businesses that have listed on the platform run the risk of having their reputations damaged if the platform they are affiliated with has been the subject of inquiry about the authenticity of its CEO and the due diligence processes that are followed.
If investors are hesitant to participate via the RockRaise platform, then companies may have a harder time getting investment, which may be another source of the difficulty. Because of this, it may be more difficult for them to get the financing necessary to implement their initiatives.
Conclusion
The concerns that were brought up by the study of RockRaise underscore how important it is for crowdfunding platforms to practice due diligence and openness.
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