Raising Capital Through Equity Crowdfunding
Equity Crowdfunding (“ECF”) is a way of raising funds, primarily through the internet whereby an investor receives shares in return for their investment in the company which promotes the business.
In 2015, the Securities Commission (‘SC”) released the guidelines on Regulation of Markets under Section 34 of the Capital Markets and Services Act 2007 (“CMSA”) to regulate Equity Crowdfunding (“ECF’) in Malaysia, making Malaysia the first country in the Asia-Pacific to legislate ECF.
In the same year, the SC approved six (6) ECF operators, local and foreign to launch the ECF platforms. These operators are, Alix Global, Ata Plus, Crowdonomic, Eureeca, PitchIN and Propellar Crowd+.The move by the SC has made raising capital through equity crowdfunding more convenient to issuers in Malaysia.
The first step to tap into this market is to be properly prepared. A well planned campaign will generate and maintain the interest in the company. As such, it is pertinent to research on the potential interest in the project/ idea before embarking on crowdfunding. Research on the ECF platforms which will best suit your business ideas/project. Some ECF platforms are more well-known than others which could potentially lead to a larger target audience. Continue reading >>>
