1 Am I qualified to invest? Under which category?
Everyone is qualified to become an Investor. Under the SC’s Guidelines, there are three (3) categories of Investors allowed to participate and invest in the Issuer:
- (a) Sophisticated Investors
- (i) a high-net-worth individual whose total net personal assets or total net joint assets with his or her spouse, exceed RM 3,000,000, excluding the value of the individual’s primary residence;
- (ii) a high-net-worth individual who has a gross total annual income exceeding RM 300,000 per annum in the preceding twelve (12) months;
- (iii) a high-net-worth individual who, jointly with his or her spouse, has a gross total annual income exceeding RM 400,000 per annum in the preceding twelve (12) months;
- (iv) a high-net-worth company that is registered as a trust company under the Trust Companies Act 1949 which has assets under management exceeding RM 10,000,000;
- (v) a high-net-worth corporation that is a public company under the Companies Act 2016 which is a trustee approved by the SC under the Capital Markets Services Act 2007 and has assets under management exceeding RM 10,000,000;
- (vi) a high-net-worth corporation or partnership with total net assets exceeding RM 10,000,000 based on the last audited accounts of the company;
- (vii) a pension fund approved by the Director General of Inland Revenue under the Income Tax Act 1967;
- (viii) a statutory body established by an Act of Parliament or an enactment of any State; or
- (ix) acquires any of the capital market product or Islamic capital market product offered or traded on a recognised market where the consideration is not less than two hundred and fifty thousand ringgit or its equivalent in foreign currencies for each transaction whether such amount is paid for in cash or otherwise
- (b) Angel Investors
- (i) a high-net-worth individual whose total net personal assets exceeds RM 3,000,000;
- (ii) a high-net-worth individual who has a gross total annual income exceeding RM 180,000 per annum in the preceding twelve (12) months; or
- (iii) a high-net-worth individual who, jointly with his or her spouse, has a gross total annual income exceeding RM 250,000 per annum in the preceding twelve (12) months;
- (c) Retail investors
All other Investors apart from Sophisticated Investors and Angel Investors.
2 I am not a Malaysian. Can I invest?
Yes, you may. However, please make sure that you have complied with the regulations in your country before you access and/or invest in a campaign.
3 How much I can invest?
It depends on the needs of each campaign and it is subject to the category of Investor you are qualified under as follows:
Type of Investor
No restrictions on investment amount
A maximum of RM500,000 within a twelve (12) month period
A maximum of RM5,000 per Issuer with a total amount of not more than RM50,000 within a twelve (12) month period
4 Can I invest in various campaigns?
Yes. It is entirely at your own discretion and investment risk appetite.
5 Can I change my mind and withdraw the investment?
Yes. In the event of a Successful Campaign, the Cooling-off Period will kick in and you can withdraw your investment at any time during the Cooling-Off Period and request for refund.
6 Can I update my investment amount?
Before the expiry of the campaign period, you may contact Mystartr to assist you on updating your investment amount. If it is after the expiry of the campaign period, you may need to contact the Issuer directly to make the necessary arrangements.
7 Will Mystartr transfer my investment monies immediately to the Issuer?
No. Your investment monies will be kept separately in the Trust Account and will not be released unless the Minimum Target Amount and all Conditions Precedent have been achieved.
8 What if the campaign I invest fails to achieve the Minimum Target Amount?
Your investment monies will be refunded to you.
9 How will Mystartr refund me if I cancel the investment or when the campaign I invest fails to raise the Minimum Target Amount ?
Your investment monies will be refunded to your bank account.
10 Does Mystartr charge any fee on me?
11 Will my information be published on Mystartr?
Yes. However, you may choose to remain anonymous. Please contact Mystartr for further assistance.
12 When will I get my Offer Shares?
Upon the Successful Campaign, Mystartr will go through the necessary documentation phase and if all Conditions Precedent have been met, Mystartr will release the Investors’ Funds to the Issuer. The Issuer will issue share certificate to the LLP, which is an entity formed to hold the Offer Shares on your behalf. Upon completion, this will be considered as closing of a campaign.
13 What rights do I have after I get my Offer Shares?
You (via the LLP) will become a shareholder of the Issuer, which means you own part of the Issuer as long as the Issuer is in existence. Your rights will be subject to the shareholders’ agreement between the LLP and the Issuer.
14 Will I be able to sell off my Offer Shares after the closing of a campaign?
You may but take note that there is no guarantee you will be able to sell your Offer Shares when you want to or at all. You may have to find buyer(s) yourself or wait for the correct timing (i.e. when there is trade sale or when the Issuer’s founders decide to buy back Offer Shares from the shareholders).
15 Does Mystartr help keep track of the Issuer’s progress after the closing of a campaign?
Mystartr will disclose necessary and sufficient information to facilitate communication between the Issuer and the Investors. While Mystartr provides end-to-end support throughout the transfer of Investors’ Funds and issuance of Offer Shares, Mystartr however, does not monitor the progress of the Issuer after closing of a campaign.
Tax incentive for investment in Equity Crowd Funding Equity Crowd Funding (“ECF”) allows start-up companies to raise funding using online platforms registered with the Securities Commission of Malaysia (“SC”).
It is proposed that income tax exemption will be given on 50% of the investment amount, subject to the following:
(i) The exemption is limited to RM50,000 for each year of assessment;
(ii) The deduction is limited to 10% of the aggregate income for that year of assessment;
(iii) The investor, investee company and amount of investment must be verified by SC;
(iv) The investor must not have any family relationship with the investee company;
(v) The investment must be made through ECF platform approved by SC; and
(vi) The investment must not be disposed of, in full or in part, within 2 years from the date of investment.
Effective: For investment made from 1 January 2021 to 31 December 2023