Equity Crowdfunding (ECF) Malaysia – What You Need to Know
•By Mahersaham Team
Artikel ini juga tersedia dalam Bahasa Melayu
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To grow a business, you need capital. Capital can be obtained in many ways.
People often mention OPM – other people''s money. That''s right. It''s one way to secure funding.
So in this article, I want to share about ECF.
ECF stands for Equity Crowdfunding. ECF is a method where business owners raise funds online from Malaysians who wish to become investors in the company.
In simple terms, anyone can invest in a company, provided they have the capital.
Wait. But you don''t even need a CDS account to invest in ECF.
Confused? Let me explain.
ECF features companies that are still in the early stages of growth – they haven''t gone for an IPO or listed on Bursa Malaysia yet. That''s the key difference.
ECF has 3 main components: the company owner, the ECF platform owner, and the investor.
Platform owners are known as ''market operators''.
They must first obtain approval from the Securities Commission (SC). For any investment, always verify with the SC.
On the SC website, there are 10 registered market operator platforms. Among them are:
Make sure you only invest in companies under platforms approved by the SC. Ignore those not listed with the SC.
There are 3 types of investors:
Only local private companies and limited liability partnerships are allowed to host on ECF platforms as issuers.
The required capital depends on the issuer. Some have a minimum of RM1,800, while others require RM2,400.
You need to click on the platforms listed earlier and register an account.
After registration, you''ll be shown companies that are seeking funding.
All information about the companies is available there for you to read.
As an investor, before expressing interest in any company, read through the business info, pitch info, and financials about the company.
All investment decisions are in your hands.
Equity Crowdfunding (ECF) is a capital-raising method where retail investors can invest in private companies through platforms recognised by the Securities Commission Malaysia (SC).
The minimum capital depends on the issuer. Typically it starts from around RM1,000 to RM2,400, depending on the campaign run by the company.
Yes, like any other investment, ECF carries risks. The company you invest in may not succeed. Therefore, it is important to read the business info, pitch info, and financials before making a decision.
You need to register on an SC-recognised ECF platform such as pitchIN, Ata Plus, or MyStartr. After registering, you can browse the list of companies raising funds and choose to invest.
Interested to start investing in the stock market? Register for a CDS Account with us for guidance from beginner to advanced level. You can also download our Free Stock Market Basics Ebook for your first step.