1 What is equity crowdfunding ("ECF")?
ECF allows companies ("Issuers") to raise funds from a large number of investors, many of whom are individuals ("Investors") through an online ECF platform ("ECF Platform") by offering ordinary or preference shares to the Investors ("Offer Shares").
2 What can Investors gain from ECF?
In return, the Investors will receive Offer Shares and may expect a return in the form of dividends and/or profits if the Issuer performs well.
3 What are the advantages of ECF?
ECF allows Investors to own certain shares in a company, where such opportunity was previously only made available to institutional investors such as Angel Investors (as defined below) or venture capital firms.
4 What are the disadvantages of ECF?
Investors may lose their whole investments if the Issuer fails in its business. Other risks include illiquidity and dilution of shares. Please read MyStartr’s Risk Warning for further information.
5 Is raising funds via an ECF Platform legal in Malaysia?
Yes. The Securities Commission of Malaysia ("SC") has legalised such fund-raising method in Malaysia since 2015 but only ECF Platforms approved by the SC can host Issuers on their platforms publicly.
6 Is MyStartr licensed and regulated?
Yes. MyStartr has been approved by the SC as a licensed ECF Platform since 2019.
7 How does MyStartr help prevent risks including fraud?
MyStartr will perform the necessary due diligence to ensure that all disclosure documents lodged with us are verified and such documents will be made available to Investors through MyStartr’s ECF Platform.