What is the new fundraising cap for companies on ECF platforms?

Question

Accepted Answer

The new fundraising cap for companies on ECF platforms has been raised to RM10 million.

Previously, companies could raise a maximum of RM5 million through equity crowdfunding (ECF) platforms. This adjustment signifies an increase in the capital-raising potential for businesses utilizing this method. This change is one of two significant updates made by the Securities Commission (SC), aiming to further stimulate the use of ECF and peer-to-peer (P2P) financing platforms.
Increased Capital Raising Limit

The equity crowdfunding limit has been doubled from RM5 million to RM10 million per company. This move is intended to provide greater financial capacity for businesses seeking investment through ECF.
Supportive Regulatory Framework

The Securities Commission (SC) has been instrumental in establishing a strong regulatory framework for ECF and P2P financing in Malaysia, being the first country in ASEAN to regulate crowdfunding in 2015 and P2P financing in 2016. The SC mandates strict compliance and disclosure rules, including audits and due diligence, to ensure informed investment decisions and safeguard investor rights.
Government Co-Investment Fund

The Malaysia Co-Investment Fund (MyCIF), launched in October of the previous year, further supports companies raising funds. Initially, it matched RM1 with RM1 in a 1:4 ratio up to RM500,000. This ratio has since been adjusted to a more attractive 1:2, with the scheme continuing until September 30.
Broader Impact and Digital Adoption

These enhancements are part of broader efforts to encourage more companies, particularly those affected by the Covid-19 crisis, to utilize ECF and P2P platforms. The Malaysian Digital Economy Corporation (MDEC) has extended its campaign to promote these funding avenues, highlighting the growing importance of digital adoption for businesses.

Reading history

Hide →

This history is cleared when the page is closed.

What is the new fundraising cap for companies on ECF platforms?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends