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