Need general photos from Securities Commission Fintech event as well as from ECF review at 12 and P2P review at 12.20pm
Equity crowdfunding (ECF) is making it easier for the average person to invest, with a recent report revealing that the smallest sum invested to date is just RM10.
As ECF is lowering the barrier of entry to investing, it’s democratising the finance sector, says Ata-plus co-founder Elain Lockman.
ECF financing platforms allow people to invest in early-stage and unlisted startups (issuers) in exchange for shares.
Ata-plus is one of six ECFs approved by the Securities Commission back in June 2015 – the others are PitchIn, Crowdo, FundedByMe, CrowdPlus.asia and Eureeca.
Speaking at the SCxSC Digital Financing Conference, Elain says take up for ECF campaigns in Malaysia was slower this year compared to other countries, probably due to investors being defensive during the election period.
One campaign failed to raise the minimum target because “people were too distracted” as the campaign ran between the run-up to election and fasting month, she said.
According to preliminary crowdfunding statistics, as of October, ECF operators have raised RM43.34mil through 48 successful campaigns.
The majority of the campaigns aimed to raise funds under RM500,000 (48%), while those between RM500,000 to RM1mil made up 17%, RM1mil to RM2mil made up 22%, and RM2mil to RM3mil made up 13%.
Tech companies were the majority of the issuers at 56%.
Elain says there were also fewer women investors this year, down to 29% from 34% from the same period last year.
“We find female investors tend to skew towards female entrepreneurs, perhaps due to the industries being more relevant to their interests like wellness and baby products,” she says.
According to the report, a majority of the investors are below 35 (39%), while those between 35 and 45 made up 33%.
Older investors are in the minority – those between 45 and 55 and those above 55, each accounted for 14%.
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