Academy turns to equity crowdfunding


By Zieman
  • News
  • Monday, 16 May 2016

Norman (left) of KRU Academy and Sam of pitchIN are out to raise money from investors in exchange for shares in the academy.

KRU Academy is now seeking funds through pitchIN’s Equity Crowdfunding (ECF) platform, an online mechanism for private companies to raise money from investors in exchange for shares in the company.

KRU Academy is a vocational college specialising in skills related to the creative industry and entrepreneurship.

KRU Academy Sdn Bhd chief executive officer and KRU Malaysia Sdn Bhd group chief executive officer Datuk Norman Abdul Halim hopes to raise between RM250,000 and RM3mil to introduce a new faculty.

“We hope to get this through a few rounds of equity crowdfunding.

“Our initial focus is on creative industry vocational programmes and will eventually offer other vocational programmes related to entrepreneurship, business studies, virtual reality, gaming, tourism, hospitality and ICT,” said Norman, who started KRU Academy Sdn Bhd in 2012 with a paid-up capital of RM4mil, with only 16 students.

“The pitchIN management team has the right people from the finance, corporate sectors with extensive networking in government agencies, domestic and international angels, accelerators and incubators.

“Cradle Fund is our Venture Partner and we work closely with MDeC, Malaysian Global Innovation and Creativity Centre (MaGIC) as well as the Malaysian Business Angel Network (MBAN),” said Pitch Platform Sdn Bhd chief executive officer Sam Shafie.

The vocational college will decide how much equity to offer for the amount of money they plan to raise, with pitchIN guiding them on the means and methods of valuation that will help them come up with a figure that is fair and attractive to investors.

Registered private limited companies (Sdn Bhd) with paid-up capital less than RM5mil are allowed to launch ECF campaigns, raising up to RM3mil over a year with the maximum that can be raised being capped at RM5mil.

pitchIN has 11 lead investors on board, namely Captii Ventures, Kosciuszko Joldings, Nexea Angels, RHL Ventures, Segnel Ventures, VLT, Axiata Digital Innovation Fund (ADIF), Marna Capital, and angel investors Dr Sivapalan Vivekarajah, Ben Lim and Azrul Reza Aziz.

Meanwhile, Norman said KRU Academy’s technical vocational education and training (TVET) was gaining good momentum, and he hoped to play a strong role in TVET by diversifying their programmes.

“We aspire to be a leading Malaysian private vocational college and venture abroad by 2025. KRU Academy’s revenue has grown from RM150,000 in 2013 to RM4.9mil last year.

“We hope to achieve a turnover of RM6.9mil by June 30.

“Our net profit projections are above RM10mil for 2019 and we are eyeing a possible listing on Bursa within the next five years.

KRU Academy’s ECF campaign was officially live on pitchIN recently and we have started offering our shares,” said Norman.

According to Sam, ECF investments should be done with a long-term view.

“It may be difficult to find buyers for your shares quickly but we believe, eventually, there will be a secondary market to trade these shares. Until then, be prepared to hang on to your investment for the long term,” he concluded.

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Metro , Business , Central Region , ECF

   

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