The State of Equity Crowdfunding Malaysia

The State of Equity Crowdfunding Malaysia

by December 7, 2017
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Equity crowdfunding is a mechanism that enables the general public to invest in typically early stage businesses. In return for the investment the investors are typically given a small piece of equity in return (think Kickstarter but instead of rewards you get a small ownership in the company).

In Malaysia, the Equity Crowdfunding framework was first issued in 2015 by Securities Commission Malaysia and the country was considered the first in Asia Pacific to legislate it. There is a mix of local and foreign market operators, all of which are incorporated in Malaysia, as required by the framework. Through this platform startups (issuers) are allowed to raise 5 Million MYR (1.2 Million USD approx)

Equity Crowdfunding Malaysia Approved Operators

Equity Crowdfunding Malaysia Approved Operators

The Malaysian Equity Crowdfunding scene has enjoyed relative success, we’ve observed some notable fund raising with largest being The Parenthood, raising a whooping RM 2.6 Million through Crowdo. BabyDash is a close second having raised RM 2.5 Million through pitchIN. Overall the industry has seen 35 successful campaigns with 84% success rates and raised a grand total of RM 26 Million (6 Million USD)

Equity Crowdfunding Malaysia Key Statistics

Equity Crowdfunding Malaysia Key Statistics

Source: Securities Commission Malaysia

We’ve aggregated the publicly available data from the respective Equity Crowdfunding platforms, the data shows that of all the platforms that are currently operating in Malaysia, pitchIN is dominating the market with 45% market share all the funds raised so far. Eureeca has been omitted for the chart below as there is no data available on funds raised in Malaysia. It may not be too far fetched to draw the conclusion that no funds have been raised through Eureeca so far since majority of the players are very transparent about the funds raised.

Equity Crowdfunding Malaysia Market Share Breakdown

Equity Crowdfunding Malaysia Market Share Breakdown

All in all the Malaysia Equity Crowdfunding scene looks healthy and poised for further growth in 2018.  The numbers indicates that Securities Commission Malaysia took the right step in regulating the Malaysia Equity Crowdfunding scene with both promotes access to capital for businesses and provides investment opportunities to the general public.

Featured Image via: Pixabay and Unsplash

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  1. #1 The State of Equity Crowdfunding Malaysia 3 January, 2018, 14:54

    […] article was first published on fintechnews.sg, Featured Image via: Pixabay and […]

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