How long will it take to raise funds ?
Since every business is unique and will need different funding round periods, you will have to determine the number of days to reach your funding target. There is, however, a maximum period of 90 days for any kind of businesses to get listed and reach their funding target. Crowdfunding is driven by the wisdom of the crowd to help fund companies, be it in their start up or growth-stages.
How do I get the right market visibility and traction on my offer ?
Once your business is up and listed on the platform, consider that it has spearheaded it’s digital presence and thus has the opportunity access to almost unlimited investors and potential backers. You should take advantage of the services offered by our platform, by linking it to social medias and blasting online marketing campaigns across the platform. What we could do is help cater your marketing strategies to the type of investors that will be interested in your proposition, as well as linking your business with offline key players and agencies. It is up to your company to develop their own collateral such as online videos and to understand how to build and maintain a community of supporters before, during, and after the business/venture launches.
What do I do when I reach the funding target ?
When an investor makes a payment to invest in your company, the money is held securely in an independent 3rd party escrow account. Once your funding target is reached, we will sort out the paperwork. When all is in order, the funds will be transferred into your company’s account.
What happens if the target funding is not achieved ?
If the business pitch does not achieve 100% of its funding target within the normal 3 month listing period, then the committed investments are cancelled, the pitch is closed and the monies are returned to the investors.
How do I engage with investors after reaching the funding target ?
Our portal offers essential communicating platform whereby you can engage with your selected investors. It works like a forum or an online blog where you could update them with the latest progress on your business proposition. Investors too will interact by leaving comments and if so they wish to see you, could request for a private meeting.
Can I pitch again if I have reached the funding target ?
Yes. IMPORTANT : Please take note that under the Securities Commission Equity Crowdfunding (ECF) Guidelines, you are allowed to raise up to a maximum of RM 20 million via Equity Crowdfunding, throughout the company's lifetime, excluding your own capital contribution or any funding obtained through private placement exercises.
Can my pitch get overfunded ?
When a pitch has reached its target funding (100%), you may choose to ‘over fund’ and accept further investment in exchange for releasing additional equity. Otherwise, you can choose not to accept further investment and stick to the initial equity offerings. Before getting listed, you may want to set a secondary target for funding in order to anticipate ‘over funding’ and offer appropriate equity offer. This way, you may continue to accept investment until either the secondary target is met or the funding round closes.
What is MyCIF?
Malaysia Co-Investment Fund (MyCIF) was established by the Ministry of Finance and the Securities Commission Malaysia to be co-invested in small and medium enterprises (SMEs) with private investors through ECF and P2P crowdfunding. MyCIF will invest in ECF campaigns that are hosted on ECF platforms in accordance with the following co-investment criteria:
- MyCIF will invest in ECF campaigns based on a 1:4 ratio, in which MyCIF will invest RM1 for every RM4 successfully raised from private investors on the MyCIF participants' platforms;
- MyCIF's maximum investment in each ECF campaign is limited to RM1,000,000;
Visit here to learn more on MyCIF.