Stage 4: Early equity
Equity crowdfunding (ECF)
ECF lets many investors buy small shares in your company through an SC-registered platform; the government co-investment fund MyCIF can match raises on eligible campaigns, with special ratios for certain sectors.
Best suited for
Early-stage companies with a story customers and community can back, and a plan for what comes after.
Pros
- Raise from many small investors without one big shareholder
- Builds a community of supporters and customers
- MyCIF and related co-investment schemes can add to the round
Cons
- You give up equity and take on many shareholders
- Campaigns need marketing effort and disclosure
- Later investors will look closely at the cap table
Watch out for
Understand the shareholder rights you grant and the reporting you owe investors afterwards. Co-investment ratios and eligible sectors are set by SC and MITI and may change.
Budget 2027 for SME financing: RM270 million for ECF and P2P
From ECF to LEAP, ACE and the Main Market: the listing pathway
Where to look: SC-registered ECF & P2P operators
Real-world examples
- pitchIN raises through ECF
pitchIN, an ECF platform itself, raised RM5.5 million from 322 investors through a campaign on another platform, Leet Capital, in 2021.
Reported by: Digital News Asia (opens in new tab)
- MyStartr campaign
MyStartr reported a RM4.7 million campaign backed by 431 investors in 2023.
Reported by: Business Today, 2023 (opens in new tab)
- Platform track record
pitchIN reported being the first Malaysian ECF platform to help companies raise RM100 million.
Reported by: Fintech News Malaysia (opens in new tab)
Examples are drawn from public reports and are not endorsements. Results vary and are not typical.
Related options
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