Alternative Funding – What is it about?
The COVID-19 pandemic has severely affected the sustainability of startups and tech companies in Malaysia. Companies especially with less than 3 years of operations are faced with various challenges tapping into funding facilities as banks will prioritise existing customers with track records. As such, an alternative avenue for funding and financing is necessary for them.
In response to this, MDEC has partnered with 11 Equity Crowdfunding (ECF) and Peer-to-Peer (P2P) platforms to help entrepreneurs tide the economic challenges & provide cash flow relief for micro, small & medium enterprises (MSME). MDEC will offer priority assessment to all applicants by screening your eligibility before submitting them to the selected ECF/P2P operators.
APPLY NOW2020 program key statistic
Total Applicants
98
companiesTotal Funding Request
RM 131.65 mil
No. of Companies Live/Pre-Live
16
companiesHow can my company benefit from this?
Simply follow the steps below and we will do our best to match you with the right ECF & P2P partner.
Step 2
Start Application and Select Funding Facilitation -> Alternative Funding Program
Step 3
Fill in Basic Company Information and Select Preferred ECF/P2P Platform
Step 4
MDEC will submit potential applicants to respective ECF & P2P partners
How can I invest in these companies?
We also encourage all Malaysians to lend a hand to these rising startups that are in need of your support to continue serving you. Join us in the fight against the COVID-19 pandemic and let’s support our local tech companies. Together, we can play an important role in addressing this emergency.
To start investing, please visit our partners’ website.
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pitchIN
pitchIN, a Registered Market Operator (RMO) with the Securities Commission, is Malaysia’s and Asia’s leading equity crowdfunding platform.
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ATA Plus
Ata Plus, an Equity Crowdfunding (ECF) platform registered with the Securities Commission is Malaysia’s fastest growing ECF platform
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CrowdPlus Sdn Bhd
CrowdPlus.asia is ASEAN’s FIRST Equity Crowdfunding Platform and is backed by Netrove Ventures, a regional venture capital firm.
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Leet Capital Sdn Bhd
Leet Capital is an equity crowdfunding platform that is part of the 1337 Ventures ecosystem.
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Ethis Ventures
Ethis Malaysia is a Securities Commission Malaysia approved Shariah compliant equity crowdfunding platform.
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CapBay
CapBay is an award-winning Multi-Bank Supply Chain Finance and P2P Financing platform that provides comprehensive business financing solutions
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Funding Societies
Launched in early 2017, Funding Societies Malaysia is the first and largest P2P financing platform in Malaysia.
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microLEAP
microLEAP is an Islamic fintech platform that focuses on the microfinance sector.
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MoneySave
MoneySave P2P is a World’s 1stP2P Crowdfunding Platform offering >20 Risk Reduction Incentives to SME Buisnesses
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QuicKash Malaysia Sdn Bhd
QuicKash Malaysia aims to bring businesses and investors together in a vibrant, innovative marketplace for peer-to-peer financing.
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B2B Finpal Sdn Bhd
B2B Finpal is a peer-to-peer financing platform for businesses in Malaysia.
Officially supported by the Securities Commission
Malaysia Co-Investment Fund (MyCIF) is an initiative administered by the Securities Commission of Malaysia which co-invests with the crowd in either an ECF or P2P campaign.
MyCIF Investments for ECF Campaigns:
MyCIF Investments for P2P Campaigns:
Are you eligible for this initiative?
Requirement to participate in ECF
Under the Guidelines on Recognized Markets issued by the Securities Commission (SC’s Guidelines), your business must be:
Requirement to participate in P2P Lending
To be eligible your company must be:
Complimentary Startup Valuation Report by Equidam
Eligibility: For startups that have completed their onboarding process with selected platform partners
Know More About Equidam
pitchIN
pitchIN, a Registered Market Operator (RMO) with the Securities Commission, is Malaysia’s and Asia’s leading equity crowdfunding platform. pitchIN Equity went live in March 2016 and to date it has successfully funded 88 deals and run more than 100 campaigns, the most among all ECF platforms in Malaysia. pitchIN has raised over RM 120 million to date, with close to 5000 investments made into fast growing Malaysian companies
Offering
All Alternative Funding Program introduced companies that raise funds through pitchIN will receive 10% reduction of success fees
More information Apply now
ATA Plus
Ata Plus, an Equity Crowdfunding (ECF) platform registered with the Securities Commission is Malaysia’s fastest growing ECF platform. Recognised as Malaysia’s most trusted Fintech solution provider in 2020 by APAC Business Headlines, Ata Plus has raised RM39 million to date for over 47 companies, raising funds from 900 investors from 19 countries across the globe
Offering
20% rebate on the screening fees
More information Apply now
CrowdPlus Sdn Bhd
CrowdPlus.asia is ASEAN’s FIRST Equity Crowdfunding Platform and is backed by Netrove Ventures, a regional venture capital firm. Leveraging on a tried and tested deal sourcing and selection process that will enhance the quality of deals presented to the crowd for equity funding, this platform also launches their unique “QMI” feature that will bring to play qualified mentors and investors across the region to achieve greater value creation and enhance success for companies funded through CrowdPlus.asia
Offering
Equity crowdfunding for all SMEs and start-ups as an alternative form of financing and funding
More information Apply now
Eureeca
Eureeca is the first global equity crowdfunding platform. It enables members of its investor network, who range from casual and angel investors to institutional firms, to buy shares in growth-oriented businesses, while providing operational businesses with crucial access to capital
Offering
1. Eureeca now offer a 50% discount on our listing fee with the option to pay in instalments.
2. Fast tracking of processing in cases of urgency and emergency funding with creative deal structuring
3. Fast-Track onboarding for businesses that need liquidity now./p>
4. Extended campaigns that give companies more time to hit their target
5. Dedicated virtual office hours with Eureeca’s account management and investor relations departments.
6. Access to Eureeca’s extensive network of professional service partners including generous AWS credits for eligible companies
More information Apply now
CapBay
CapBay is an award-winning Multi-Bank Supply Chain Finance and P2P Financing platform that provides comprehensive business financing solutions. Since starting operations in 2017, CapBay has financed over RM800m across 10,000 B2B transactions. CapBay was awarded ’The Best Fintech Platform for Supply Chain Finance in Asia Pacific’ by The Asian Banker and ‘Fintech Startup of the Year’ by The Asset.
Offering
One stop funding solution to alleviate cashflow needs and ensure business continuity. From project tender, mobilisation, ongoing delivery to project closure, we have comprehensive financing products at every step of the way:
Fast-track onboarding and platform fee discounts up to 20% available for businesses that sign up by 31st March 2021, T&C apply
More information Apply now
Leet Capital Sdn Bhd
Leet Capital is an equity crowdfunding platform that is part of the 1337 Ventures ecosystem. Leet Capital makes it easier for (i) all investors to invest in high-growth businesses and (ii) for high growth businesses to raise growth capital. Additionally, the 1337 Ventures ecosystem is the market leader in enabling and growing the startup and SME ecosystem in Malaysia all the way from idea generation, entrepreneur courses and coaching, mentoring, investing, corporate partnerships and supporting growth and other capital raising initiatives.
Offering
20% discount on all fees for the first 5 successful fundraisers
Hands on support and coaching through the entire process from an investor mindset perspective given the experience of investing our own capital under the 1337 Ventures portfolio
Leverage the wider 1337 Ventures ecosystem of mentoring, online courses, government and corporates partnerships as well as startups
Access to the Leet Capital and 1337 Ventures investor network
More information Apply nowFunding Societies
Launched in early 2017, Funding Societies Malaysia is the first and largest P2P financing platform in Malaysia. Registered with the Securities Commission, the P2P financing platform connects SMEs with investors through an online marketplace, thereby increasing access to financing for SMEs. By investing into SMEs, investors could earn risk-adjusted returns. Meanwhile, SMEs obtain access to short-term financing to expand their business through a fast and simple online process. Additionally, SMEs benefit from not having to provide collateral for financing, while interest costs are minimized due to short financing tenures
Offering
Interest rate discount on Financing (Up to 2% p.a.). *
Obtain business financing at discounted rate. Valid for applications during the MCO period
Net 5 to 9% interest rate for Social Enterprises. *
Social enterprise status companies registered with MaGIC are entitled for a 50% discount on financing interest rate
New investors registration to get RM50 cash back
Investors who register for an account with a given link and made a minimum cumulative investment of RM1,000 during the campaign period will be entitled for RM50 credited into their Funding Societies investor account
General business financing
Working capital financing and invoice financing solutions
microLEAP
microLEAP is an Islamic fintech platform that focuses on the microfinance sector. microLEAP provide Issuers (borrowers) access to P2P (Peer-to-Peer) Financing from as little as RM1,000 to RM50,000. Issuers may raise via Islamic or Conventional financing. Funding is crowd-sourced. microLEAP is part of MDEC’s eBerkat Programme
Offering
For Issuers (borrowers):
MoneySave
MoneySave P2P is a World’s 1stP2P Crowdfunding Platform offering >20 Risk Reduction Incentives to SME Buisnesses,Malaysia’s Fastest P2P Crowdfunder at 95 Secs and Winner for International Innovation Award 2020
Offering
For Issuers (borrowers):
Estimated Funding Cost *
8-12% flat p.a. (0.60%-1% per Mth)
*excludes 0.50% per Month Platform Hosting Fee
QuicKash Malaysia Sdn Bhd
QuicKash Malaysia aims to bring businesses and investors together in a vibrant, innovative marketplace for peer-to-peer financing. QuicKash’s marketplace is geared to allow SMEs faster access to lower cost financing and give investors direct access to alternative asset classes that can generate higher returns, in an environment where risks are shared. We are revolutionising the way businesses access credit and transforming the way investors invest.
Offering
Interest rate without collateral (1.5% p.m. or lower)
Interest rate with collateral (1.0% p.m. or lower)
Net 6% to 9% interest rate for Social Enterprises
financing for working capital, supplier chain, demand chain and all kind of projects financing for up to RM5,000,000
Investor will earn interest 1.00% p.a. on idle fund, higher return than bank’s Saving Account.
More information Apply now
B2B Finpal Sdn Bhd
B2B Finpal is a peer-to-peer financing platform for businesses in Malaysia. With the sophisticated risk algorithm and extensive SME experience, our financial ecosystem connects the SMEs with investors to quick and easy financing access for underserved SMEs.
Offering
Access up to RM1,000,000 Short-term Working Capital Financing, with no collateral needed.
Access up to RM1,000,000 Invoice Financing Facility for immediate cash flow needs.
Covid-19 Relief Financing up to RM150,000, with no repayment for first 6 months.e-Commerce Financing up to RM150,000 for traders on e-Commerce Platform.
Key Benefits to SMEs
MyStartr
MyStartr is one of the largest reward based crowdfunding platforms in Malaysia. We have funded more than 1,000 campaigns since 2013. To date, we have more than 40,000 supporters and 13,000 FB Fans to view our online events. MyStartr first founded the “Dream Factory” programme to build a large community of entrepreneurs and startups.
The Securities Commission awarded an equity crowdfunding licence to MyStartr in May 2019, and launched our platform in December 2019. Within a year, we had successfully funded 14 projects and raised RM19,700,000 with an average 100 investors per campaign. This year, we aim to review 1,000 projects and set our goal to fund 70 campaigns with a total of RM100 Millions with our strong support and investors base
Offering
1. 100% waive on boarding fees
2. 10% platform fees rebate for all successful campaigns for participating company
3. Zoom and FB Live funding campaign support and access to Mystartr supporter and investors network
More information Apply now
Fundnel
Fundnel is Southeast Asia’s largest private investment technology platform, building next-generation capital markets infrastructure to increase access and liquidity for entrepreneurs and investors. At the core of our deal-making expertise lie our proprietary algorithms that syndicate opportunities in private companies and PE/VC funds to our network of strategic investors. With the expertise of our investments team, we have curated more than USD6 billion worth of deals for over 14,000 accredited investors from across the globe.
By augmenting access and liquidity for entrepreneurs and investors, we accelerate the creation of innovative solutions that will go on to impact our communities and societies at large. We operate in Singapore as a capital markets services licence holder and are a registered market operator for equity crowdfunding in Malaysia.
Offering
1. Flexibility to choose deal structure, inclusive of revenue sharing options
2. No fees for application, processing or screening — issuers only pay a fee if their fundraising is successful
3. Access to our network of ASEAN retail, angel and sophisticated investors, as well as corporate venture, venture capital, and other institutional investors (if eligible)
4. A convenient teaser page summarising information on the company and the investment offer for busy investors
5. Opportunity to tap into Fundnel’s wider ecosystem to explore more financing options (if eligible)
6. Settlement support where necessary
More information Apply now
Ethis Ventures
Ethis Malaysia is a Securities Commission Malaysia approved Shariah compliant equity crowdfunding platform. As part of Ethis Global’s grouping of investment, financing and charity crowdfunding platforms, we have a global base of investors and donors from over 60 countries and counting.
Offering
1. 50% rebate on pre-campaign fee (for DD, screening).
2. 5% rebate on campaign fee (for successful fund-raise).
More information Apply now