Source: Crowdonomic. Crowdonomic was one of just a few operators approved as a Registered Electronic Facility (Equity Crowdfunding Platform) by Malaysia’s Securities Commission. From left: Nicola Castelnuovo, Co-founder and Chief Commercial Officer of Crowdonomic; Datuk Ranjit Ajit Singh, Chairman, Securities Commission Malaysia and Leo Shimada, Co-Founder and Chief Executive Officer of Crowdonomic.
Crowdonomic, a leading crowdfunding platform in Southeast Asia, was designated as a registered electronic facility by the Securities Commission Malaysia (SC). This makes Crowdonomic a pioneer in building an equity crowdfunding (ECF) platform in Malaysia. The company’s established presence, regional reach, and experienced team offer a potent blend of international market access, high-quality deal flow, and financial expertise.
Crowdonomic received approval as a Registered Electronic Facility (Equity Crowdfunding Platform) from SC Chairman Datuk Ranjit Ajit Singh on the first day of the SC’s Synergy & Crowdfunding Forum (SCxSC) 2015, making it one of few conventional operators to be granted this status.
“This registration is a significant achievement resulting from our ongoing engagement with regulators. We aim to shape competitive crowdfunding policies and establish fully compliant, professional businesses in the markets where we work. Our collaborative approach is a key difference between us and many self-proclaimed crowdfunding platforms currently operating in unregulated spaces,” said Leo Shimada, Co-Founder and CEO of Crowdonomic.
Along with registering electronic facilities, the SC is implementing guidelines and regulations to strengthen investor protections. These include establishing clear disclosure regulations and fundraising rules for businesses pursuing funding. Malaysia’s regulations take an inclusive approach by allowing all investor types to take part in offerings, with investment limits set for safety. The framework is distinct in allowing businesses to raise up to RM3 million within a year and investment funds to raise unlimited amounts off-platform.
Equity crowdfunding is widely recognized for its ability to help startups thrive and advance their innovations. This holds immense potential in Malaysia, a nation with over 600,000 SMEs that make up over 90% of its total businesses. Startups are seen as innovation leaders, with research indicating a strong belief that smaller businesses drive innovation in Malaysia.
Shimada further highlighted the emergence of equity crowdfunding as a new asset class. “Equity crowdfunding is a game-changer. It allows businesses, for the first time, to fully utilize social media and technology for effective capital raising. This is especially crucial in Malaysia, where people are known to be among the most active social media users globally. Startups will have increased capacity to efficiently secure capital, while investors gain transparent access to new investment possibilities,” Shimada explained.
To maximize the impact of equity crowdfunding in Malaysia, Crowdonomic is actively developing an alliance of leading players from the corporate, venture capital, financial institution, and entrepreneurial landscapes. This strategy distinguishes Crowdonomic from other operators who tend to operate as independent websites.
“We are eager to explore opportunities with anyone interested in the potential of equity crowdfunding. We are currently in talks with numerous entities in Malaysia and the region, and we welcome the chance to connect with more individuals. We are not simply replicating the Western model when it comes to equity crowdfunding. Rather, we are proactively shaping a unique Malaysian model. We are certainly enthusiastic about helping to stimulate the Malaysian economy and lead the way in this domain across Asia,” Shimada stated.
*SME Corporation
**GE’s 2014 Global Innovation Barometer
***TNS’ Connective Life 2014 study