Guides • 15 December 2020
For Malaysian investors, we take you through a simple guide on investing in ECF opportunities via Fundnel Malaysia
According to the Global Startup Ecosystem Report 2020 by Startup Genome, Kuala Lumpur ranked amongst the top 10 emerging ecosystems in performance and top 20 emerging ecosystems in talent. With the emergence of various fundraising opportunities in the local market, this comes as no surprise. Businesses can explore peer-to-peer (P2P) and equity crowdfunding (ECF) platforms, reach out to angel investors or pitch to venture capital firms. The government has also initiated several COVID-19 related assistance for startups and SMEs to leverage on.
Fundnel launched in Malaysia in November 2018 as the 7th licensed recognised market operator (RMO). As an equity crowdfunding platform in Malaysia, we connect businesses looking to fundraise with investors interested in private investment opportunities — what was once accessible to only sophisticated or accredited investors. Investors gain by participating in the startup funding scene and supporting the various businesses that play a vital role in the economy by providing jobs, creating automation and efficiency, and driving the country’s productivity.
Interested in taking part in exclusive ECF investment opportunities on Fundnel Malaysia? We've prepared a short video guide below. If you prefer written instructions, read on for a simple guide to walk you through the process!
1. Join us as an investor
2. Explore live ECF deals
The deal room displays information about the company and the investment opportunity. Investing in ECF is a high-risk endeavour, so do note that it is important to do your own research and due diligence. To kick start your private investment journey, we’ve prepared a guide for you. For live deals, we typically conduct deal roadshows to enable businesses to present their pitch to educate investors on the deal prior to making an investment. Information on the event will also be available in the deal rooms for live deals.
3. Click “Invest now” in the selected ECF campaign room
Once interested, you can express your preferred investment amount in the selected company and choose if you’d like our Investments team to contact you via email or call to follow up on any enquiries.
4. Fill in the details
Enter your NRIC or passport number, contact details and investment amount
5. Complete investor verification*
In line with guidelines set forth by Securities Commission Malaysia, our Investments team will reach out to you to request relevant documents for Know-Your-Client (KYC) checks — to verify your ability to invest in the opportunity.
6. Transfer investment amount
With KYC checks cleared, our team will send you further instructions to transfer the indicated investment amount to a trust account. Once we have verified the successful transfer, relevant agreements related to the investment will be sent to you for endorsement.
7. Complete your investment
After the ECF campaign is closed, a cooling period of 6 days will take place — this is a period in which any changes to your investment interest and amount are still allowed. The executed agreements will be sent to you, indicating the completion of your investment.
Do note that should the minimum fundraising goal of the issuer not be met by the deadline set, the campaign will not be able to proceed and investors will be returned their capital.
*As we hold an ECF license regulated by the Securities Commission Malaysia, these are legally required processes to ensure compliance with regulations in order to protect our investors and issuers.