Asian Crowdfunder kicks off with three projects in Malaysia
By Digital News Asia June 12, 2015
- Uses equity crowdfunding model, not rewards-based
- Investors will be vetted and accredited
ASIAN Crowdfunder has launched its platform in Malaysia with three projects on offer, and said it is also in the process of starting in Singapore, Indonesia and Thailand.
Describing itself as a pan-Asian, equity-based crowdfunding platform, Asian Crowdfunder said it was “founded by investors, for investors,” and is accessible to vetted and accredited investors only.
Its announcement came on June 11, the same day that Securities Commission Malaysia (SC) announced the approval of six registered equity crowdfunding (ECF) platforms: Alix Global, Ata Plus, Crowdonomic, Eureeca, pitchIN and Propellar Crowd+.
Meanwhile, Asian Crowdfunder said its goal is to provide accredited investors from across the world access to Asia’s growth opportunities at an early stage, and provide Asian entrepreneurs with capital and knowledge to take their ideas and businesses to the next level.
The three cofounders – Frank Holle of Quant Asset Management Pte Ltd, Graham Paling of Mongoose Publishing, and Kenneth Kolb of Hot Can – bring nearly a century of experience in investment management and successful business management, the company said in a statement.
“I have been in the business of investment for over 25 years and I have seen many financial revolutions, but this by far is the biggest,” said Holle (pic).
“Equity crowdfunding is changing the way small businesses raise money. With the Government realising its importance and setting regulations, Malaysian business now have an even better chance of tapping global investment markets,” he added.
Asian Crowdfunder enables accredited and sophisticated investors to invest in companies raising funds on the Asian Crowdfunder platform and gain equity in the company invested in – unlike rewards-based crowdfunding, where investors only receive a reward or a product when they invest.
To register on AsianCrowdfunder.com, investors will have to fill up a form and take a self-certification test to determine whether they are accredited investors or high net worth individuals or entities.
After activating an account, the user will be able to view all the investment opportunities and either proceed to invest or set up their own pitch. Thorough due diligence will be conducted on each business that wants to pitch and the investors who invest in the businesses, Asian Crowdfunder said.
Accredited investors can browse pitches which contain information about the business, the founder and the growth plan along with videos, photographs and supporting documents.
The investor can choose to invest in a particular business by either clicking on ‘invest now’ or making an alternate offer. Once the investor has invested a certain amount, it will be held in an escrow trust account till the successful completion of the pitch (90 days or earlier).
If the pitch is successful, then the business approves the investors and the money is moved from the escrow to the business in return for company shares. If the pitch is not sucessful, the money will be returned to the investor, Asian Crowdfunder said.
“Asean represents more than 9% of the world’s population and also represents great business opportunities,” said Kolb (pic).
“We … will connect accredited global investors to business opportunities in the fast growing economies of Asean.
Asian Crowdfunder launched with three projects in Malaysia:
The first is Sid’s Pubs, headed by Geoff Siddle, which is looking to grow from six outlets to 40 neighbourhood-style pubs serving British pub grub and drinks in a welcoming and friendly atmosphere.
It is targeting US$275,000 in investments.
The second is Fire Fitness, headed by Dave Nuku and Mike Lamb who aim to transform the way fitness is approached in Malaysia.
Fire Fitness aims to be the first chain of aggregated fitness studios providing personalised fitness classes and proprietary fitness products. It is aiming for US$125,000.
Finally there is Impulse Studio, which uses German-developed EMS (electrical muscle stimulation) technology to help people achieve their fitness goals, and is the exclusive equipment distributor of XBody in South-East Asia.
It is aiming for US$225,000.
SC selects six platforms for equity crowdfunding in Malaysia
pitchIN pitches crowd-funding, Malaysian style
Equity crowdfunding goes private with FundedHere in Singapore
Three crowdfunding platforms form alliance out of Singapore
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