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Funds from equity crowdfunding in Malaysia increase to RM221.63m in 2021, says Securities Commission
The total funds via equity crowdfunding (ECF) raised increased to RM221.63 million in 2021. — AFP pic
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KUALA LUMPUR, March 28 — The total funds via equity crowdfunding (ECF) raised increased to RM221.63 million in 2021, from RM127.73 million in 2020, the Securities Commission Malaysia (SC) said in its Annual Report 2021 released today.
It said since its inception, the total funds raised via equity crowdfunding (ECF) stood at RM420.86 million.
The SC said 104 issuers had successfully raised funds via 104 campaigns in 2021, with the total number of issuers increasing by 33 per cent in 2021 from 2020.
“The majority of issuers in 2021 were based in Selangor and Kuala Lumpur, and 53 per cent of issuers in 2021 were technology-focused companies,” it said.
The commission said the majority of issuers in 2021 had established their businesses for five years or less, with more issuers in 2021 having business operations of less than two years compared to 2020.
Campaign sizes in 2021 continued to be of larger fundraising amounts, with 86 per cent of the campaigns raising beyond the RM500,000 mark.
“The highest amount of funds raised in 2021 by a single campaign stood at RM18.89 million,” it said.
The ‘Professional, Scientific, and Technical Activities’ sector received the most funds in 2021 with RM60.25 million
Meanwhile, 54 per cent of campaigns in 2021 fundraised for Series A, with the main purpose for fundraising being for business expansion.
Since ECF was first introduced, the total number of participating investors surpassed the 11,000 mark.
“For a year-on-year comparison, investor participation increased to more than 5,000 in 2021 from about 3,000 in 2020,” it added. — Bernama