Today marks the launch of CrowdPlus.asia, ASEAN’s first equity crowdfunding (ECF) platform that utilises proven methodologies of venture capital (VC) investment for startups and SMEs to raise funds from the public, who in turn will take equity in the company and be a part of their growth.
Deputy Finance Minister Datuk Chua Tee Yong, who officially launched CrowdPlus.asia, said that traditional crowdfunding is projected to raise US$30 billion globally this year, with the crowdfunding market forecasted to grow to US$90 billion by 2025. “There is also a healthy appetite for alternative market-based channels of financing which traditional financial avenues cannot satisfactorily address. The launch of CrowdPlus.asia will encourage ASEAN companies to set up their operations in Malaysia and raise funding through their platform,” Chua said.
“Equity crowdfunding is a disruptive financing platform,” said Teh Kim Seng, Chairman of CrowdPlus.asia during his speech at the launch. As the founder of Netrove Ventures Group, a 15-year-old regional tech-based venture capital firm, Teh observed that there are a lot of good companies and entrepreneurs but not enough funds to go around. “Venture capitalists are limited to what they can do for the overall industry. There is a huge gap between VC and conventional methods of financing. ECF can bridge that gap and change the landscape of the financing ecosystem.” He also applauded the Securities Commission (SC)’s speed in developing the ECF legal framework ahead of some of the financial hubs such as Singapore and Hong Kong.
Teh added that the CrowdPlus.asia platform is established to create value for both the companies and investors. Investors are assured that only quality companies that have undergone the stringent due diligence process will be listed on the platform, while the company founders will benefit from the experience and guidance of a group of lead investors called the Qualified Matching Investors (QMI). “This win-win relationship epitomises CrowdPlus.asia and unique to us,” said Teh. There are currently 30 QMIs on the platform and the numbers are growing.
According to Chua, the remaining five platforms should be up and running by Q1 2016. “The equity crowdfunding segment is still very new and we may approve more ECF platforms in future depending on the market reception.”
Source: http://www.smartinvestor.com.my/crowdplus-asia-launches-aseans-first-equity-crowdfunding-platform/, 13 Nov 2015
