pitchIN vs Ata Plus vs MyStartr: Which Malaysian ECF Platform Is Safest?
Equity crowdfunding (ECF) in Malaysia is no longer a foreign concept - since the SC approved the first ECF platform in 2015, more than RM2.6 billion has been raised through ECF and P2P in 2024 alone, up from RM2.2 billion in 2023. But for retail investors looking to enter, the most important question is not "what is ECF" - but "which platform is safest for me to put money in?".
Because the difference between platforms here is not just about UI or fees. It is about due diligence quality, campaign failure track record, liquidity exit (can you sell your shares later?), and the financial strength of the platform operator. Choose a weak platform, and even if the startup you invest in succeeds, you can get stuck in administrative headaches for years.
In this article, we compare the three most frequently mentioned names in the Malaysian ECF ecosystem - pitchIN, Ata Plus, and MyStartr - from angles that actually matter to investors: track record, fee structure, SC protection, and risk profile. If you are new to ECF and still want to understand the basics first, read our article Equity Crowdfunding (ECF) - Pernah Dengar Ke? first.
SC Malaysia Regulatory Framework: The Baseline You Must Understand
Before we compare platforms, you need to understand that all ECF platforms in Malaysia are subject to the same regulations from the Securities Commission Malaysia (SC). This means all licensed platforms must:
- Be approved as a Recognised Market Operator (RMO) by the SC
- Segregate investor funds in third-party trust (escrow) accounts
- Provide a 6-day cooling off period - investors can withdraw
- Provide a 14-day opt-out if there is a material change to the company / project
- Cap the amount raised: RM3 million per year per issuer, up to RM20 million over the company's lifetime
For investors, the SC also sets investment limits by category:
| Investor Category | Per Issuer Limit | 12-Month Limit |
|---|---|---|
| Retail | RM5,000 | RM50,000 |
| Angel | No per-issuer limit | RM500,000 |
| Sophisticated (HNW) | No limit | No limit |
A sophisticated investor is defined as an individual with a net worth of at least RM3 million or annual income of RM300,000+. This matters because retail-oriented platforms (vs platforms catering to angel/sophisticated) have different risk profiles.
So from the regulatory baseline angle, all three platforms are equally safe. The real difference lies in operational quality, campaign failure rates, and secondary market track record - which is what we will dissect next.
pitchIN: Malaysia's Largest ECF Platform
pitchIN is the largest and most mature ECF platform in Malaysia. Since being licensed by the SC in 2015, it has processed over RM350 million from 18,000+ investors across 184+ campaigns. It also holds the record for Malaysia's largest single ECF campaign so far - RM20 million in a single round.
pitchIN Strengths
1. Most consistent deal flow pitchIN typically has 3-8 active campaigns at any given time, far more than other platforms. This gives retail investors broader choice for portfolio diversification.
2. Real successful campaigns Notable campaigns that succeeded include TheLorry (RM4.1 million) and Speedhome (RM2 million). Both companies grew to a larger stage post-ECF, giving investors confidence that potential exits exist.
3. The pitchIN PSTX secondary market This is pitchIN's biggest differentiator. They operate PSTX (pitchIN Secondary Trading Exchange) which allows ECF company shares to be traded between investors before the company goes IPO. This solves the classic ECF problem: liquidity exit. If you invest RM5,000 in company A, normally you are locked in until the company IPOs, gets acquired, or pays dividends. With PSTX, you may be able to exit earlier.
4. Ecosystem support pitchIN has relationships with MTDC (Malaysian Technology Development Corporation) for co-investment, plus various incubators and VCs that provide an additional layer of due diligence.
pitchIN Weaknesses
1. Higher fees for issuers pitchIN charges a success fee of up to 7% (the SC maximum). This can pull issuers to cheaper platforms, even though most startups still pick pitchIN for the investor volume.
2. High competition for investors Because it is popular, "hot" campaigns can be oversubscribed within hours. Retail investors sometimes miss out if they are slow to enter.
3. Not all campaigns succeed There have been pitchIN campaigns that failed to hit the minimum target, with funds returned. This is not a platform weakness - it is SC protection - but can look like "the platform isn't working" if you are new to ECF.
Ata Plus: Niche Shariah-Compliant & Social Enterprise
Ata Plus may be the least-known of the three, but it has a strong niche: Shariah-compliant financing and social enterprise. SC-approved and a member of the Fintech Association of Malaysia (FAoM), Ata Plus targets companies with social missions or those wanting Islamic finance structures.
Ata Plus Strengths
1. Shariah specialisation For Muslim investors who want to ensure their ECF investments are Shariah-compliant, Ata Plus has structures and issuer selection focused on halal business models. This is hard to find on "general" platforms like pitchIN.
2. Thorough due diligence for social enterprises According to an academic analysis from UiTM about Ata Plus, the platform conducts thorough credit and background assessments specifically for companies with social impact elements - something mainstream platforms sometimes overlook.
3. RM0 investor fees Like pitchIN and MyStartr, investors are not charged any fee to invest. All fees are borne by the issuer.
Ata Plus Weaknesses
1. Lowest deal flow This is the most obvious weakness. Active Ata Plus campaigns are far rarer than pitchIN's - sometimes months go by without a new campaign. For investors looking to diversify their ECF portfolio, this is a major challenge.
2. No secondary market Unlike pitchIN's PSTX, Ata Plus has no secondary trading platform. Once you invest, you are locked in until the company exits (sale, IPO, or fails).
3. Smaller operations Compared to pitchIN with 18,000+ investors and RM350M+ track record, Ata Plus is far smaller. This is not a direct safety issue (everyone is subject to SC), but it means less community feedback and less historical data.
MyStartr: A Crowdfunding Veteran Mid-Pivot
MyStartr has an interesting story. Launched in 2012 as a reward-based crowdfunding platform (similar to Kickstarter), it later received SC approval for ECF in 2019. To date, MyStartr has helped companies raise more than RM160 million - but this figure is a combined ECF and reward-based total, not ECF alone.
MyStartr Strengths
1. Lowest issuer fees This is MyStartr's number-one differentiator - they charge 4% in cash + 2% in equity to issuers (6% total), versus 7% on most other platforms. For companies raising funds, this is hundreds of thousands of ringgit difference.
2. End-to-end issuer support MyStartr offers campaign preparation support, marketing, and regulatory compliance. This appeals to startups without in-house capability to manage the complex ECF campaign process.
3. Rewards + equity combination Some MyStartr campaigns offer combinations - investors get equity PLUS rewards (products, services). This can boost community engagement.
MyStartr Weaknesses
1. Shorter ECF track record MyStartr only entered ECF in 2019 - 4 years later than pitchIN. This means fewer case studies of their ECF companies that have successfully exited (IPO or acquisition) since startup cycles are typically 5-10 years.
2. Identity confusion MyStartr is still widely known as a reward-based crowdfunding platform. This can attract issuers with business models more oriented to community / hobbyist than serious startups with growth potential. For retail investors, this means you need to be more careful selecting campaigns.
3. No secondary market Same as Ata Plus, MyStartr has no platform for share trading between investors. Your liquidity exit depends entirely on the fate of the company in question.
Direct Comparison: Spec Sheet of 3 Platforms
| Factor | pitchIN | Ata Plus | MyStartr |
|---|---|---|---|
| SC license | 2015 | 2015 | 2019 |
| Total funds raised | RM350 million+ | Not disclosed | RM160 million+ (combined) |
| Number of investors | 18,000+ | Not disclosed | Not disclosed |
| Successful campaigns | 184+ | Smaller | Not disclosed |
| Investor fee | RM0 | RM0 | RM0 |
| Issuer fee | Up to 7% | Up to 7% | 4% cash + 2% equity |
| Secondary market | Yes (PSTX) | No | No |
| Specialisation | General / scale | Shariah / social | Reward + equity hybrid |
| Minimum investment | RM100 | Campaign-dependent | RM1,000 |
| Cooling off | 6 days (SC) | 6 days (SC) | 6 days (SC) |
| Material change opt-out | 14 days (SC) | 14 days (SC) | 14 days (SC) |
Which Is Safer? - Analysis by Investor Profile
"Safer" in the ECF context has several layers:
Layer 1: Regulatory Safety
All three platforms are equally licensed by the SC and subject to the same rules. Investor funds are segregated from platform operations through third-party trust accounts. Risk of a platform "running off with the money" is near-zero for all three.
Layer 2: Operational Safety
This is where pitchIN has a clear edge. A larger platform = more resources for:
- Compliance teams
- Issuer due diligence
- Tech infrastructure
- Customer support
Smaller platforms like Ata Plus, while regulatorily safe, may be slower to respond when operational issues arise.
Layer 3: Investment Safety
This is the most important layer but most often overlooked. The platform does not guarantee that the company you invest in will succeed. Global statistics show 70-90% of startups fail within their first 10 years. ECF is no exception.
What the platform can help with:
- pitchIN: PSTX provides a liquidity option - if you want to exit early because you have lost confidence in the company, there is a chance.
- Ata Plus & MyStartr: No early exit option - you are locked in until the company exits naturally.
Verdict by Investor Profile
If you are a new retail investor wanting to test the waters with RM1,000 - RM5,000: → pitchIN - highest deal flow, largest community for learning, PSTX secondary market as a safety net.
If you are a Muslim investor wanting to ensure investments are Shariah-compliant: → Ata Plus - their specialty. Just prepare yourself for slower deal flow.
If you are an issuer / startup owner seeking the lowest cost to fundraise: → MyStartr - cheaper fee structure than pitchIN, although deal exposure may be less.
If you are a sophisticated investor with substantial capital (RM500k+): → pitchIN with a diversification strategy across 5-10 campaigns, plus explore Wahed X or Kapital DX as additional platforms.
ECF Risks Often Overlooked by Retail Investors
Regardless of which platform you choose, there are structural ECF risks you must factor in:
1. Company failure risk (highest) The majority of startups fail. You can lose 100% of your capital. This is not theory - it is market reality.
2. Illiquidity risk (long lock-up) Although pitchIN has PSTX, not all shares are actively traded. You may be locked in for 5-10 years.
3. Dilution risk in subsequent rounds When the company raises Series A/B rounds after ECF, your equity can be diluted. Not all ECF campaigns are clear about pre-money valuation and dilution protection structures.
4. No short-term dividends Early-stage startups will almost certainly not pay dividends in the first 5-7 years. All profits are reabsorbed for growth. ECF investors chase capital gains from exit, NOT dividend yield.
5. Mismanagement risk You are only a minority investor with no governance rights. If the founder makes bad decisions, you have no power to remedy the situation.
FAQ - Frequently Asked Questions
1. I am a retail investor with RM10,000. Should I split it across 2 platforms or focus on one? Diversification is your best friend in ECF. Split it across 4-5 different campaigns (not necessarily 4-5 different platforms). If your top platform pick is pitchIN, you can put RM2,000 in 5 pitchIN campaigns rather than RM10,000 in 1 campaign.
2. Do I need sophisticated investor status to get the best deals? Not necessarily. Many "best deal" campaigns remain open to retail (subject to the RM5,000 cap). Sophisticated status grants you access to deals limited to angels/HNW, plus no investment cap.
3. How do I know if a platform is shutting down? All SC-licensed platforms have disclosure requirements. They must inform the SC and investors first. In an extreme scenario, investor funds (held in third-party trust accounts) will be returned.
4. ECF vs Bursa Malaysia stocks - which is safer? Bursa Malaysia is far safer in terms of company quality (all have passed listing requirements), liquidity (you can sell anytime), and transparency (mandatory quarterly reports). ECF is an alternative for investors wanting access to pre-IPO companies with potentially higher upside - but with much greater risk. Start with Bursa Malaysia stocks first before entering ECF.
5. What percentage of my total portfolio should be in ECF? Financial experts typically recommend a maximum of 5-10% for retail investors. Because ECF is a very high-risk asset, it should be "experimental investment" you can afford to lose entirely without affecting your overall finances.
6. When can I withdraw my ECF investment? Depends on the platform and the company. On pitchIN, PSTX can provide early liquidity. On Ata Plus and MyStartr, you are locked in until the company IPOs, is acquired, or pays dividends. Assume a minimum 5-10 year timeline.
7. Are these campaigns audited by accountants? Yes, all ECF issuers must submit audited financial information to the platform as part of SC due diligence. But this does not guarantee the company will succeed - only that the disclosed information is accurate at the time of disclosure.
8. What is the difference between ECF and P2P lending in Malaysia? ECF: you buy equity (shares) in a company, profit if the company grows in value. P2P: you lend money to a company, receive periodic interest. ECF carries higher risk but unlimited upside potential. P2P has lower risk with fixed returns.
Conclusion
There is no single platform that is "safest" for all investors. pitchIN stands out for mainstream retail investors thanks to scale, deal flow, and the PSTX secondary market. Ata Plus suits the Shariah/social impact niche, and MyStartr offers value for those who want a rewards + equity combination. Before starting, make sure you understand that ECF is a very high-risk asset - not a substitute for Bursa Malaysia, but a complement for diversification of investors who already have a solid portfolio base.
ECF works best as an experimental investment component, not as the foundation of your portfolio. The first discipline in investing is building the foundation with stable, transparent instruments.
You can open a CDS account with Mplus Online to access stock trading on Bursa Malaysia and also overseas markets such as the US and Hong Kong from a single platform as your portfolio foundation.
For new investors who want to understand the basics of the stock market before exploring alternatives like ECF, download our free stock market basics ebook as a starting step.