Crowdonomic Obtains Coveted Equity Crowdfunding License for Malaysia

Crowdonomic is awarded an equity crowdfunding license in Malaysia

Crowdonomic was one of only a few operators to be approved as a Registered Electronic Facility (Equity Crowdfunding Platform) – a much-coveted status, by SC Chairman Datuk Ranjit Ajit Singh.

We are thrilled and honoured to receive this much coveted registration. The registration is the high point of our continued constructive engagement with regulators to help shape competitive crowdfunding policies and build fully compliant and professional businesses in the markets we operate in. Our collaborative approach distinguishes us from many self-proclaimed crowdfunding platforms currently operating in grey areas.”

Leo Shimada, Co-Founder and Chief Executive Officer of Crowdonomic

Through the registration of electronic facilities, SC is introducing various guidelines and rules to enhance investor protection, establish clear disclosure rules, and clarify fundraising rules for businesses seeking financing. The Malaysian regulations adopt an inclusive approach allowing any type of investor to participate in offers with investment caps set for protection purposes. The framework is unique as it will allow businesses to raise up to RM3 million within a 12-month span, and also allow investment funds to raise unlimited amounts off the platform.

Equity crowdfunding is widely seen as a powerful enabler that will help start-ups to flourish and further develop their innovations. There is huge market potential in Malaysia with SME numbers reaching above 600,0001 – comprising more than 90% of total businesses in the country. Start-ups are also seen to lead the way in innovation, with research2 indicating that many believe smaller businesses (i.e. SMES and start-ups) are the ones driving innovation in Malaysia.

To maximise the impact of equity crowdfunding in Malaysia, Crowdonomic is at advanced stages of forming a formidable alliance of top-tier players across the corporate, venture capital, financial institution and entrepreneurial ecosystem. This approach further differentiates Crowdonomic from other operators which lean towards operating as standalone websites.

Crowdonomic believes in building strong alliances across the entrepreneurial ecosystem. We are keen to explore opportunities with everyone interested in the potential of equity crowdfunding. We are in discussions with multiple parties in Malaysia and the region and we welcome opportunities to speak to more people. When it comes to equity crowdfunding, we are not content to just copy the Western model. Instead, we will be proactively paving the way to shape a unique Malaysian model. Most assuredly, we look forward to helping stimulate the economy in Malaysia as well as pioneer this space across Asia.”

Leo Shimada, Co-Founder and Chief Executive Officer of Crowdonomic