pitchIN powers past US$24.1mil equity crowdfunding milestone
By Digital News Asia November 12, 2020
- 2020 is best year ever for pitchIN; confirming its market leadership
- Raised over US$11.6 mil for 31 companies in 2020, sees brighter future
[An earlier version gave the wrong amount in the headline.]
Equity crowdfunding (ECF) platform pitchIN hit a new milestone today when it recorded US$24.1 million (RM100 million) in total funds raised for companies this week. This figure was reached by successfully hosting 74 companies who raised capital from nearly 5,000 investors since 2016. With this, pitchIN becomes the first Malaysian ECF platform to reach this milestone. To date, the ECF sector in Malaysia, which consists of 10 operators, is estimated to have raised around US$42.3 million (RM175 million) in total.
Sam Shafie, pitchIN CEO says momentum is increasing. Nearly half of the US$41.3 million was raised in 2020, “It is a record breaking year at pitchIN. We have achieved our entire year’s target with one fiscal quarter to spare. With 7 weeks to go till the end of the year, pitchIN has raised over US$11.6 million RM48 million for 31 companies.
He added that this figure, reached under the shadow of an ongoing pandemic, is a ringing endorsement of the quality of deals hosted on pitchIN. “PitchIN has built a name for hosting great fast-growing companies. When the pandemic hit, we were as concerned as anyone else about the safety and well-being of Malaysians. However, it was clear to us that the disruption caused by the pandemic was bringing about a seachange in the economy. Companies that were digital, nimble and operating in fast growing tech-focussed sectors underwent sharply improved fortunes and these were exactly the companies that pitchIN hosts on its platform.”
There were still challenges to be overcome. Over the years, pitchiN had been organising physical roadshows to back the digital marketing it carried out for every deal. The MCO put a stop to these events. The pitchIN team strategised and moved all marketing efforts online. Investors stayed loyal and the deals continued to happen. “We embraced the digital proposition and investors continued to back our deals. In fact, going fully online has enabled us to reach more people in more corners of Malaysia,” says Sam.
Kashminder Singh, Chief Strategy Officer added, “The revisions to the ECF guidelines made by SC early in the year where deals up to RM10 million were allowed on platforms as well as the government MyCIF co-investment fund also contributed to pitchIN’s success. Our deal sizes have grown and 1-for-2 matching investment by MyCIF has enabled more companies to reach their funding targets.”
Moving forward, pitchIN expects ECF will continue to grow in popularity. “The tax rebate announced for ECF investments in the 2021 budget will attract even more investors to look at ECF deals. The upcoming secondary market by pitchIN will be another impetus for the industry,” says Kashminder.
Sam is also expecting developments in the wider digital investments industry to increase awareness. “The recently announced opening of applications for Initial Exchange Offering (IEO) and Digital Assets Custodian (DAC) licenses will be further confirmation that the digital investments fintech industry is becoming mainstream. PitchIN intends to apply for the new licenses so that we can offer more products and services to our investor network.”