Alternative Funding – What is it about?

The COVID-19 pandemic has severely affected the sustainability of startups and tech companies in Malaysia. Companies 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 7 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 expeditiously screening your eligibility before submitting them to the selected ECF/P2P operators.


UPDATE:

Since the launch of this initiative, we have received overwhelming response from the startup community, many of which have requested for us to extend the deadline to allow more companies to participate.

Due to this, we are happy to announce that we will be extending this campaign for another 3 weeks to allow more companies to participate! All interested companies can submit your application by 21st May 2020.

In addition to this, MDEC will also provide sponsorship for the listing cost of 10 selected startups onto the partnering platforms.

* Following the growing popularity of alternative funding platforms during MCO, Securities Commission Malaysia announced the liberalisation of equity crowdfunding (ECF) limit to RM 10 million. The paid up capital to qualify for ECF has also been increased to a maximum of RM10 million




How 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.

1. Apply before 21 May 2020

2. MDEC will assess your application and expedite response to all applicants. Companies that apply for this initiative are entitled for priority assessment to be listed on your chosen ECF and P2P platforms.

3. MDEC will submit potential applicants to 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.

Equity Funding


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 52 deals, the most among all ECF platforms in Malaysia. pitchIN has raised nearly RM65 million to date, with nearly 3300 investments made into fast growing Malaysian companies.

How pitchIN can support
  • Lower Cost of Fundraising
  • pitchIN will invest into our Issuers
  • Innovative Fundraising Structures
  • Online Pitching Events
  • Videos and Podcasts


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    Ata Plus

    Being one of Malaysia’s first Online Equity Crowdfunding platform, Ata Plus is a proud proponent for democratisation of wealth and financial inclusion in the ‘new economy’. They believe that matching capital with exciting businesses has a far reaching productive social and economical outcomes.


    How Ata Plus can support
  • RM3,000 for ‘Shine My List’ Application Processing Fee (RM1,888 Discount)

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    CrowdPlus

    CrowdPlus.asia is an equity crowdfunding platform backed by Netrove Ventures Group, a regional tech-based 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

    How CrowdPlus can support
  • Fee discounts – 50% discount on application fees for companies that sign up with crowdplus.asia under this program
  • Fast tracking of processing in cases of urgency and emergency funding with creative deal structuring
  • BAU – not quite because we are working more than business as usual, we will work in the weekends and evenings to help you especially in urgent situations, so definitely no reduction in service level
  • Alignment & Re-investment – we can re-invest our fees into your business to help you keep more cash to grow your business.
  • Ecosystem – we connect you to the entire funding and growth ecosystem beyond just equity crowdfunding

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    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.

    How Eureeca can support
  • Eureeca now offer a 50% discount on our listing fee with the option to pay in instalments.
  • Fast tracking of processing in cases of urgency and emergency funding with creative deal structuring
  • Fast-Track onboarding for businesses that need liquidity now.
  • Extended campaigns that give companies more time to hit their target
  • Dedicated virtual office hours with Eureeca’s account management and investor relations departments.
  • Access to Eurecca’s extensive network of professional service partners including generous AWS credits for eligible companies

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    Debt Funding


    Funding Societies

    Launched in early 2017, Funding Societies is the largest P2P financing platform in Malaysia and across Southeast Asia. In Malaysia, Funding Societies have disbursed more than RM 500 million to micro, small and medium sized businesses through the support of more than 40,000 registered investors. Their mission is to provide access to short-term financing (term finance, invoice financing, payables financing) for unserved and underserved SMEs by connecting them with individual, institutional and government funding.

    How Funding Societies can support
  • Interest rate discount on Financing (Up to 2% p.a.)
  • Net 5% to 9% interest rate for Social Enterprises.
  • New investors registration to get RM30 cash back Investors who register for an account with given link and made a minimum investment of RM1,000 during the MCO period will be entitled for RM30 credited into your Funding Societies account
  • General business financing, working capital financing and invoice financing solutions of up to RM500,000

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    CapBay

    CapBay is a P2P financing platform regulated by Securities Commission Malaysia, currently offering Cashflow Relief Facility for businesses impacted by Covid19.


    How CapBay can support
  • Alleviate short term cash flow problems and ensure business continuity with collateral-free Invoice Financing, rates as low as 0.8% p.m
  • Gain access to additional Working Capital Financing line of up to RM500k
  • Platform fee discounts up to 20% for businesses that sign up by 30th April 2020

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    Micro Leap

    microLEAP is a Malaysian fintech platform that focuses on the microfinance sector. Having complied with the strict guidelines set by our regulator, the Securities Commission Malaysia (SC), they are the first of the new batch of approved P2P (Peer-to-Peer) Financing operators to be given ‘Go-Live’ status in October 2019. MicroLEAP provide Issuers (borrowers) access to microfinancing from as little as RM1,000 to RM50,000. Issuers may raise via Islamic or Conventional financing. Funding is crowd-sourced


    How Micro Leap can support
  • RM50 application fee waived
  • Free Personal Accident Insurance on the key person / business owner
  • Free basic debt management and basic accounting online video training
  • Commodity Brokerage absorbed by microLEAP for Islamic financing
  • Group Financing available based on Grameen model for Issuers with insufficient credit history

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    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.

    How Eureeca can support
  • Eureeca now offer a 50% discount on our listing fee with the option to pay in instalments.
  • Fast tracking of processing in cases of urgency and emergency funding with creative deal structuring
  • Fast-Track onboarding for businesses that need liquidity now.
  • Extended campaigns that give companies more time to hit their target
  • Dedicated virtual office hours with Eureeca’s account management and investor relations departments.
  • Access to Eurecca’s extensive network of professional service partners including generous AWS credits for eligible companies

    • know More

    APPLY TO GET ECF/P2P FUNDED

    CLICK HERE

    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:
    Subject to terms and conditions, MyCIF will invest in ECF campaigns that are hosted on the MyCIF participants’ platforms in accordance with the following co-investment criteria:

  • MyCIF will invest in ECF campaigns based on a 1:4 ratio, in which MyCIF will invest RM1 for every RM4 successfully raised from private investors on the MyCIF participants’ platforms; From 3rd April – 30th September 2020, MyCIF will invest in ECF campaigns based on a 1:2 ratio, in which MyCIF will invest RM1 for every RM2 successfully raised from private investors on the MyCIF participants’ platforms
  • MyCIF co-investment is open to all Micro, Small and Medium Enterprises who meet the requirements set forth by respective MyCIF participant’s platform (“ECF Issuer”)
  • MyCIF’s maximum investment in each ECF campaign is limited to RM500,000. From 3rd April – 30th September 2020, MyCIF’s maximum investment in each ECF campaign is limited to RM1 million.
  • In the event where ECF campaign exceeds 50% of its initial investment target, MyCIF may consider reducing the co-investment percentage.

    • MyCIF Investments for P2P Campaigns:
    Subject to these terms and conditions, MyCIF will invest in P2P campaigns that are hosted on the MyCIF participants’ platforms in accordance with the following co-investment criteria:

  • MyCIF will invest in P2P campaigns based on a 1:4 ratio, in which MyCIF will invest RM1 for every RM4 successfully raised from private investors on the MyCIF participants’ platforms. From 3rd April – 30th September 2020, MyCIF will invest in P2P campaigns based on a 1:2 ratio, in which MyCIF will invest RM1 for every RM2 successfully raised from private investors on the MyCIF participants’ platforms.
  • MyCIF co-investment is open to all
    • Micro, Small and Medium Enterprises who meet the requirements set forth by respective MyCIF participant’s platform (“P2P Issuer”)
  • MyCIF’s maximum investment in each P2P campaign is limited to RM500,000. From 3rd April – 30th September 2020, MyCIF’s maximum investment in each P2P campaign is limited to RM1 million).

    • 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:

  • Locally incorporated private companies and/or limited liability partnerships (excluding exempt private companies) with paid-up share capital not exceeding RM 10,000,000;

    • Requirement to participate in P2P Lending
    To be eligible your company must be:

  • Incorporated in Malaysia with a minimum of 30% shareholding by Malaysian citizens Either a sole proprietorship, partnership, incorporated limited liability partnerships, private limited company or an unlisted public company Operating for at least 1 year Annual turnover of at least RM300,000