Crowdonomic Obtains Equity Crowdfunding Electronic Facility Registration in Malaysia
Crowdonomic, one of the largest crowdfunding platforms in Southeast Asia, was named by Securities Commission Malaysia (SC) as a registered electronic facility to pioneer and build the equity crowdfunding (ECF) platform in Malaysia. With its substantial track record, regional presence, and team of experienced financial professionals, Crowdonomic is best positioned to offer the strongest combination of international market access, quality deal flow, and financial expertise.
Crowdonomic was one of only a few conventional operators to be approved as a Registered Electronic Facility (Equity Crowdfunding Platform) – a much-coveted status, by SC Chairman Datuk Ranjit Ajit Singh at a special session held today – on the first day of SC’s Synergy & Crowdfunding Forum (SCxSC) 2015. The session was the highlight of the highly-anticipated forum, attended by delegates representing prominent investors, start-ups, government agencies and members of the public.
“We are thrilled and honoured to receive this much coveted registration. The registration is the high point of our continued constructive engagement with regulators to help shape competitive crowdfunding policies and build fully compliant and professional businesses in the markets we operate in. Our collaborative approach distinguishes us from many self-proclaimed crowdfunding platforms currently operating in grey areas,” said Leo Shimada, Co-Founder and Chief Executive Officer of Crowdonomic.
Through the registration of electronic facilities, SC is introducing various guidelines and rules to enhance investor protection, establish clear disclosure rules, and clarify fundraising rules for businesses seeking financing. The Malaysian regulations adopt an inclusive approach allowing any type of investor to participate in offers with investment caps set for protection purposes. The framework is unique as it will allow businesses to raise up to RM3 million within a 12-month span, and also allow investment funds to raise unlimited amounts off the platform.
Equity crowdfunding is widely seen as a powerful enabler that will help start-ups to flourish and further develop their innovations. There is huge market potential in Malaysia with SME numbers reaching above 600,0001 – comprising more than 90% of total businesses in the country. Start-ups are also seen to lead the way in innovation, with research2 indicating that many believe smaller businesses (i.e. SMES and start-ups) are the ones driving innovation in Malaysia.
Shimada also said the rise of equity crowdfunding signifies the birth of a new asset class. “Equity crowdfunding is revolutionary, as it allows businesses for the first time, to leverage the full power of social media and technology to efficiently raise capital. This is particularly important as Malaysians are known3 to be among the most active on social media on a global scale. Start-ups will become more empowered to efficiently raise capital and investors can now transparently access new investment opportunities,” Shimada explained.
To maximise the impact of equity crowdfunding in Malaysia, Crowdonomic is at advanced stages of forming a formidable alliance of top-tier players across the corporate, venture capital, financial institution and entrepreneurial ecosystem. This approach further differentiates Crowdonomic from other operators which lean towards operating as standalone websites.
“Crowdonomic believes in building strong alliances across the entrepreneurial ecosystem. We are keen to explore opportunities with everyone interested in the potential of equity crowdfunding. We are in discussions with multiple parties in Malaysia and the region and we welcome opportunities to speak to more people. When it comes to equity crowdfunding, we are not content to just copy the Western model. Instead, we will be proactively paving the way to shape a unique Malaysian model. Most assuredly, we look forward to helping stimulate the economy in Malaysia as well as pioneer this space across Asia,” Shimada concluded.
Crowdonomic is Southeast Asia’s largest and fastest-growing locally originated crowdfunding company. As a leading fin-tech start-up, its mission is to become the region’s preeminent digital financial services firm connecting Asia’s brightest start-ups with global smart capital.
Established in 2012, Crowdonomic is distinctly positioned as a regional player offering a full portfolio of crowdfunding solutions. It has a strong regional presence with offices in Singapore, Malaysia and Indonesia.
Crowdonomic’s Management Team is comprised of fin-tech professionals with over 30 years of combined experience in the finance, technology and innovation space with backgrounds from world-class professional firms, corporations and financial institutions.
Crowdonomic is internationally recognised as a leading brand within the industry in Asia and has enjoyed interest from both regional and international media.