Alternative Financing for SMEs

Malaysia was the first ASEAN country to create a framework aimed at facilitating crowdfunding, with the objective of allowing SMEs to raise early-stage financing. As part of the Securities Commission Malaysia (SC)’s efforts to nurture and facilitate market-based innovation in Financial Technology (FinTech), the regulatory framework for Equity Crowdfunding (ECF) was introduced in February 2015. Continuing the initiatives, the SC also introduced the regulatory framework for Peer-to-Peer (P2P) lending, setting out the requirements for registration and obligations of P2P operators in May 2016.

As of December 2020, ten (10) ECF operators had registered with the SC. Since then, a total of RM199.23 million capital was raised through 159 successful campaigns by 150 issuers. Furthermore, eleven (11) P2P platforms had also registered with the SC. There were 15,862 successfully completed campaigns by 2,801 issuers, raising a total of RM1.14 billion.

EQUITY CROWDFUNDING (ECF)

Equity Crowdfunding (ECF) is an innovative form of alternative fundraising that allows small businesses to raise capital from the public using online platforms registered by the Securities Commission Malaysia (SC). ECF allows these small businesses to offer equity in their companies to investors, who in turn invest in ideas they see potential in. With ECF, investors have the opportunity to diversify their investments beyond the traditional asset classes.

How to Apply?
Please sign up directly on ECF Operators’ websites for application arrangement.

List of ECF Operators
No.	Logo	Name	Founded / Launched	Website
1.		Ata Plus Sdn. Bhd.	2014	https://ata-plus.com/
2.		Crowdo Malaysia Sdn. Bhd.	2013	https://crowdo.com/
3.		Eureeca SEA Sdn. Bhd.	2013	https://eureeca.com/
4.		FBM Crowdtech Sdn. Bhd.	2013	https://www.fundedbyme.com/en/
5.		Fundnel Technologies Sdn. Bhd.	2018	https://fundnel.com/
6.		Pitch Platform Sdn. Bhd.	2012	https://www.equity.pitchin.my/
7.		Crowdplus Sdn. Bhd.	2015	https://www.crowdplus.asia/
8.		Leet Capital Sdn. Bhd. (1337 Ventures)	2019	https://leet.capital/
9.		Ethis Ventures Sdn. Bhd.	2019	https://ethis.co/
10.		MyStartr Sdn. Bhd.	2019	https://www.mystartr.com/

PEER TO PEER FINANCING (P2P)

Peer-to-Peer (P2P) financing is yet another innovative form of financing that broadens the ability of entrepreneurs and small businesses to unlock capital from a pool of individual lenders in small amounts. P2P allows businesses to borrow and investors to lend capital through online platforms registered with the Securities Commission Malaysia (SC).

How to Apply?
Please sign up directly on P2P Operators’ websites for application arrangement.

List of P2P Operators
No.	Logo	Name	Websites
1.		Bay Smart Capital Ventures Sdn. Bhd.	https://capbay.com/
2.		Capsphere Services Sdn. Bhd.	https://www.capsphere.com.my/
3.		QuicKash Malaysia Sdn. Bhd.	https://www.quickash.com/
4.		B2B Finpal Sdn. Bhd.	https://www.b2bfinpal.com/
5.		Modalku Ventures Sdn. Bhd.	https://fundingsocieties.com.my/
6.		Peoplender Sdn. Bhd.	https://www.fundaztic.com/
7.		FBM Crowdtech Sdn. Bhd.	https://www.alixco.com/
8.		MicroLEAP PLT	https://www.microleapasia.com/
9.		Ethis Kapital Sdn. Bhd.	https://www.nusakapital.com/
10.		Moneysave (M) Sdn Bhd	https://moneysave.com.my/
11.		Crowd Sense Sdn Bhd	https://cofundr.com.my/