Equity crowdfunding PitchIn expects most companies listing through such platforms to be technology companies, though non-tech players are beginning to catch up.
PitchIn CEO Sam Shafie said of the 16 successful issuers, about two-thirds were tech companies.
Equity crowdfunding (ECF) is the process whereby people invest in an early-stage unlisted company (Issuer) in exchange for shares. The lower threshold of investment through ECF means retail investors could also buy into startups.
Speaking at Equity Crowdfunding Report for 2017, Sam said the trend was consistent with the appetite of investors who preferred tech companies.
"But ECF won't exclude non-tech companies. It's a matter of education: as they become more aware of this option, more will list," he said.
Sam said PitchIn had signed up another 20 companies to potentially list by mid-2018, including financial technology firms Mobiversa and Curlec, crowdshipping platform Yellow Porter, E-commerce platform Commerce Asia, parking solution provider JomParking and on-demand contact centre service Superceed.
There were also non-tech companies like Lord's tailor and entertainment company World Game Museum Cafe.
According to its report, PitchIn raised RM14.04mil through 12 issuers, about 60% of the RM23.4mil raised in 2017 through all registered ECF operators in Malaysia.
The other five operators approved by the Securities Commission included local and foreign, are Alix Global, Ata Plus, Crowdonomic, Eureeca and Propellar Crowd+.
The report also revealed the majority of investors were 22 to 34 years old (50.3%), while the 35-49 year olds made up 36.3%.
The youngest investors, those under 21 and those above 50 years old, each made up the 6.7%.
PitchIn chief information officer Kashminder Singh said it would be starting a Young Investors Club to provide financial education and exclusive opportunities to younger investors, aged 18 to 28.
"Limited funds is a barrier of entry for students and new graduates trying out investing. We're planning to let them spread their risks by investing a smaller amount in more companies," he said.
Kashminder added that instead of the RM5,000 minimum per investment, they would allow club members to invest as little as RM500.
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