Crowdfunding is the use of small amount of capital from a large number of individuals to finance a new business venture. Crowdfunding makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites, with the potential to increase entrepreneurship by expanding the pool of investors beyond the traditional circle [...]
There are 2 types of crowdfunding programmes: ECF - A mechanism that enables groups of investors to fund startups by taking up shares in the investee companies and selling the shares later P2P - Involves funds being lent at a fixed interest rate over a fixed tenure
microLEAP (Microleap PLT). A Recognised Market Operator by the Securities Commission of Malaysia who operates a P2P financing platform that allows businesses to raise crowd-sourced funds in which the issuers (borrowers) may raise financing from as little as RM1,000 while P2P investors may invest in ‘Investment Notes’ issued by them from as little as RM50.
A social lending programme that aims to facilitate local technology-based companies to obtain financing directly from the mass public; either individual or organisation via crowdfunding platform. The programme will enable companies to obtain capital through peer-to-peer (P2P) lending from a relatively large number of investors, using an online platform. The programme will support eligible companies [...]
Any local technology-based companies. The basic eligibility criteria are as follows: Incorporated in Malaysia Majority owned by Malaysian Intellectual Property (IP)-backed technology Commercial ready prototype Qualified to launch P2P fundraising campaign through crowdfunding platform (i.e. microLEAP)
MTDC-microLEAP P2P Financing Programme provides financing up to 30% of fund to be raised or maximum RM500,000.00, whichever lower, per campaign. The remaining 70% of funding will be raised via crowdfunding in the P2P platform operated by microLEAP.
Islamic Investment Note.
The profit rate for the financing depends on the profit rate determined by the P2P platform.