For the very first time, two crowdfunding platforms that are regulated as Recognised Market Operators (RMO) by the Securities Commission (SC) are forming an alliance.
The aim of the alliance is to offer investors as well as startups an alternative to the traditional means of raising capital. Besides, the alliance will also boost awareness, trust and acceptance in the industry. It will see Fundaztic, the peer-to-peer (P2P) financing market leader in terms of number of SMEs, raise funds via pitchIN, the market leader in equity crowdfunding (ECF).
Commenting on the campaign, Ms. Kristine Ng, Chief Executive Officer, Peoplender Sdn Bhd, the company that owns and manages Fundaztic said, “We are confident that the 3 million shares – the maximum allowed under the ECF Guidelines – that will be made available through equity crowdfunding will receive overwhelming response as preliminary indication of interest is already nearing 11 million.”
Addressing the guests and media at the event, Mr. Sam Shafie, Chief Executive Officer of Pitch Platforms Sdn Bhd, added, “Based on our experience and our record of 100% success rate, we are optimistic that the 3 million shares will be snapped up within a short span of perhaps between 1–2 hours as Fundaztic has already established proven track records in terms of earnings growth as well as growth in their member base and Notes hosted each week.”.
The move will see fintech taking a more prominent role in the growth process of startups. Crowdfunding will also see a gradual democratisation of the startup space, enabling good ideas to grow more easily. Members and investors of both Fundaztic and pitchIN will be able to indicate to both platforms their interest during the pre-marketing stage and begin investing when the campaign goes live on 17th October 2018. Prior to investing, they are required to register on both Fundaztic and pitchIN.