In May 2015, Malaysia became the first country in Asia and the second after New Zealand in the APAC region to introduce equity crowdfunding. The Securities Commission approved the applications from six equity crowdfunding platforms (ECFs) — Ata Plus, Crowdplus, Crowdo, Eureeca, FundedByMe and PitchIN — to operate in the country.

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The first ECF campaign went live in December 2015, and by 2016 all six platforms launched campaigns. Twenty campaigns were launched across six platforms in 2016. Of these, 15 were successful. A total of RM10,975,389 (US$2.8 million) was raised in 2016.

The year 2017 was the breakout year for the Malaysian ECF industry. The number of campaigns, especially the amounts raised, were all up, compared to 2016. The total amount raised through ECF jumped sharply to RM23,393,973 (US$6 million). Equity crowdfunding became a viable source for funding by SMEs and startups.

Tech companies comprised majority of the successful campaigns. Nevertheless, there were nine non-tech campaigns to date, indicating that there is interest from investors for traditional SME businesses, too.

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The platforms

All six platforms have launched campaigns and five of the platforms have recorded successful campaigns to date.
Jointly, the number of successful campaigns have risen from 15 in 2016 to 22 in 2017, recording a 46.6 per cent increase.

Among them, pitchIN reached double digit figures for number of successful campaigns in a year, with the other platforms achieving four or less campaigns each in 2017.

For funds raised, the amount went up sharply from RM10.9 million (US$2.8 million) in 2016 to RM23.4 million (US$6 million). pitchIN hit double digit numbers. Four other platforms raised amounts between RM1 million and RM3.3 million (US$250,000 and US$US841,500) in 2017.

(Source: pitchIN)

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