Any locally incorporated company in Malaysia.
Equity crowdfunding works exactly like normal crowdfunding, except that it specifically refers to raising funds for unlisted or private companies, in exchange for equity in these companies.
Equity crowdfunding in Malaysia was made legal with the passing of legislation to amend the Capital Markets and Services Act in July 2015. You can find detailed guidelines on Recognized markets here.
Yes, iPivot (formerly CrowdPlus.asia) is one of the 10 equity crowdfunding operators to be granted an equity crowdfunding licence by the Securities Commission Malaysia.
Any locally incorporated company in Malaysia.
Once you have joined as a user, you could sign up to raise capital here. You will be guided through our set up process where you are required to input business and financial information about your company. Once completed, your information is reviewed to ensure it meets the criteria and if the information provided is satisfactory, you will be notified for the next step.
There is no minimum investment to be requested while the maximum investment is RM 20,000,000 per company through equity crowdfunding platform in its lifetime.
You have the option on iPivot's platform to keep your company confidential. If confidentiality is required we only show a brief description of your idea to the public.
The offer period is usually 30 days from launch date. An extension period of up to 30 days might be given on a case-by-case basis.
If a company is worth RM1 million (pre-money) and investors make investments of RM250,000, the new, post-money valuation of the company will be RM1.25 million. The investors will now own 20% of the company.
iPivot would suggest engaging an expert to assist with the Company's valuation.
You can set a maximum amount you want to raise. No further capital can be raised once the maximum amount is reached. However, exception could be made with proper disclosures.
Current regulations only allow companies to conduct fund raising campaign through one of the ten(10) licensed platform, and restrict them from changing platform once the fund raising campaign is launched.
We will go through the documentation phase with you and your investors. Funds will be held in a Trust account until the documentation phase is completed and all conditions precedent are met.
Company that requested to raise capital will have to provide relevant information that is required by the platform. iPivot (formerly CrowdPlus.asia) will review the information provided and if required, a professional third party service provider will carry out financial and/or legal due diligence on the company.
A fee of RM 4,888 application fee will be charged once we grants you initial approve to explore equity crowdfunding campaign with us.
A fee of 6% - 7% is charged on the total amount raised in a successful fund raising campaign and no fee is charged in the event of unsuccessful campaign.
In addition to that, it is important to note that there may be costs associated with financial and legal due diligence (if required) payable to third party, which is not refundable.
The successful fee will be revised to 7% flat starting in 2023.
The equity that you can be offered is in the form of preferred or ordinary shares.
The minimum investment is RM500 and the maximum investment from an individual is subject to the investors type.
Theoretically, there is no maximum number of investors that a company can offer equity to. As such, a company can stipulate the maximum number of investors that they want to have.
For companies who do not meet their minimum capital raise at the end of offer period, a fund raising campaign is deemed unsuccessful. All funds committed from investors will therefore be refunded without any cost.
Once signed up on www.ipivot.biz, you will be guided through establishing your profile and investment preference. Once completed the user will then have full access to the site and information on Issuers that are listed on iPivotm platform.
Investor verification is required before making an Investment.
The minimum investment that you can invest are subject to case by case basis. In the event if the Issuer have set that the minimum investment for that particular campaign is RM100, the minimum investment will be RM100.
Investing in early stage companies involves risks, including loss of capital and illiquidity. It should be done only as part of a diversified portfolio. Investors in this asset class should undertake due diligence before completing an investment.
The company valuation is determined by the owners while the soundness or reasonability of the valuation is cross-checked against experts' opinion or market benchmarks, if available.
Equity offered by companies could be in the form of preference shares or ordinary shares.
Your shareholder's rights will vary from offer to offer. You are recommended to seek for professional advice if you do not have relevant experience in investing in private companies.
There are two primary methods of Investing.
For companies who do not meet their minimum targeted fund raising amount, the funds will be refunded to the investors.
You will have the option to remain anonymous to the public while investing.
No fee is charged on investors. Fee is charged on companies that successfully raised their minimum targeted amount within the offer period.
Once the maximum targeted amount set by the company is reached, no further investments can be made. We then proceed to the documentation phase and arrange all necessary agreements for both the investors and the company.
Funds are only transferred to the company once the documentation phase is completed and all other conditions precedent are met. Until then, the funds are held in a secured trust account.
This is subject to the agreements between the shareholders and the company, which will be disclosed before the investment is made.
Investors who take part in ECF will be given income tax exemption of 50% of the investment amount up to RM50,000 each year. The deduction is limited to 10% of aggregate