Frequently Asked Questions
Crowdfunding is defined as the collective effort of individuals who network together to pool their funds, usually via an online platform.
Equity crowdfunding is defined as many people or ‘crowd’ invest relatively small amount of money in an unlisted/private company in exchange for equity of that company.
Legality of equity crowdfunding varies from country to country. Equity crowdfunding in Malaysia was made legal with the passing of legislation to amend the Capital Markets and Services Act in July 2015.
Yes, CrowdPlus.asia is one of the six equity crowdfunding operators to be granted an equity crowdfunding licence by the Securities Commission Malaysia in June 2015.
Any locally incorporated company in Malaysia.
Once you have joined as a user, you could sign up to raise capital here. You will be guided through our set up process where you are required to input business and financial information about your company. Once completed, your information is reviewed to ensure it meets the criteria and if the information provided is satisfactory, you will be notified for the next step.
There is no minimum investment to be requested while the maximum investment is RM3,000,000 in any 12 month period.
You have the option on CrowdPlus.asia to keep your company confidential. If confidentiality is required we only show a brief description of your idea to the public.
The offer period is usually 30 days from launch date. An extension period of up to 30 days might be given on a case-by-case basis.
If a company is worth RM1 million (pre-money) and investors make investments of RM250,000, the new, post-money valuation of the company will be RM1.25 million. The investors will now own 20% of the company.
CrowdPlus.asia could suggest various methodologies which include market comparison or an expert’s opinion.
You can set a maximum amount you want to raise. No further capital can be raised once the maximum amount is reached. However, exception could be made with proper disclosures.
Current regulations only allow companies to conduct fund raising campaign through one of the six licensed platform, and restrict them from changing platform once the fund raising campaign is launched.
We will go through the documentation phase with you and your investors. Funds will be held in a Trust account until the documentation phase is completed and all conditions precedent are met.
Company that requested to raise capital will have to provide relevant information that is required by the platform. CrowdPlus.asia will review the information provided and if required, a professional third party service provider will carry out financial and/or legal due diligence on the company.
A fee of 5.5% to 7.5% is charged on the total amount raised in a successful fund raising campaign and no fee is charged in the event of unsuccessful campaign. In addition to that, it is important to note the cost associated with coaching, financial and legal due diligence, if required, is not refundable.
The equity that you can be offered is in the form of preferred or ordinary shares.
The minimum investment is RM500 and the maximum investment from an individual is subject to the investors type.
Theoretically, there is no maximum number of investors that a company can offer equity to. As such, a company can stipulate the maximum number of investors that they want to have.
For companies who do not meet their minimum capital raise at the end of offer period, a fund raising campaign is deemed unsuccessful. All funds committed from investors will therefore be refunded without any cost.
Before making an investment you need to sign up at CrowdPlus.asia. Once signed up, you will be guided through establishing your investment preferences and completing the KYC procedures. You will then have full access to the site and to companies listed to raise capital.
The minimum investment that you can invest is RM500. The maximum investment that you can invest is subject to your investor type.
KYC procedures are conducted as part of the due diligence process on investors.
Investing in early stage companies involves risks, including loss of capital and illiquidity. It should be done only as part of a diversified portfolio. Investors in this asset class should undertake due diligence before completing an investment.
The company valuation is determined by the owners while the soundness or reasonability of the valuation is cross-checked against experts’ opinion or market benchmarks, if available.
Equity offered by companies could be in the form of preference shares or ordinary shares.
Your shareholder’s rights will vary from offer to offer. You are recommended to seek for professional advice if you do not have relevant experience in investing in private companies.
Once you have decided to invest, payments are made to a secured Trust account where funds are held until the end of the offer period.
For companies who do not meet their minimum targeted fund raising amount, the funds will be refunded to the investors.
You will have the option to remain anonymous to the public while investing.
No fee is charged on investors. Fee is charged on companies that successfully raised their minimum targeted amount within the offer period.
Once the maximum targeted amount set by the company is reached, no further investments can be made. We then proceed to the documentation phase and arrange all necessary agreements for both the investors and the company.
Funds are only transferred to the company once the documentation phase is completed and all other conditions precedent are met. Until then, the funds are held in a secured trust account.
This is subject to the agreements between the shareholders and the company, which will be disclosed before the investment is made.

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