Q: What kind of business is qualified to be hosted on Mystartr’s ECF Platform?
Under the Guidelines on Recognized Markets issued by the SC ("SC’s Guidelines")
- Only locally incorporated companies i.e. private company and unlisted public company and limited liability partnerships; or
- Microfund that has been registered with the SC as a venture capital company, has a specified investment objective and only raises funds from Sophisticated Investors and Angel Investors.
Q: Who is not eligible to be an ECF applicant?
According to the Guidelines on Recognized Markets SC-GL/6-2015(R7-2021) Paragraph 13.15,
The following entities are not allowed to raise funds through ECF platforms:
(a) Exempt private company;
(b) Commercially or financially complex structures (i.e. investment fund companies or financial institutions);
(c) Public-listed companies and their subsidiaries;
(d) Companies with no specific business plan or its business plan is to merge or acquire an unidentified entity (i.e. blind pool);
(e) Companies other than a microfund that propose to use the funds raised to provide loans or make investment in other entities; and
(f) any other type of entity that is specified by the Securities Commission Malaysia.
Q: Does Company require to submit prospectus for hosting ECF campaign?
No, except unlisted public company
Q: How long does it usually take to complete an ECF campaign?
Each campaign shall run for a period of sixty (60) calendar days or any other period as may be notified by us to you in writing, commencing on the date that the campaign is hosted on Mystartr's ECF Platform online and expiring on the sixtieth (60th) day thereafter.
Q: How do I decide the target funds I am seeking to raise ("Minimum Target Amount")?
It depends on the size and needs of your business. Setting a reasonable and realistic Minimum Target Amount will help to achieve your Minimum Target Amount easier and faster. We recommend you to conduct market survey on your business, or if necessary, to seek professional’s opinion.
Q: What is the fundraising amount limit an issuer can raise through an ECF platform ("Maximum Target Amount")?
Under the SC's Guidelines:
- An issuer may only raise collectively, a maximum amount of RM20 million through ECF platforms in its lifetime. This amount is excluding the issuer’s own capital contribution or any funding obtained through a private placement exercise.
- Above shall not apply to a microfund hosted.
Q: What happens if I fail to raise the Minimum Target Amount?
Mystartr operates on an all-or-nothing basis. The funds will be refunded to the Investors if you fail to raise the Minimum Target Amount by the end of the campaign period.
Q: Is an issuer allowed to keep the funds raised if the campaign failed to achieve its minimum target amount?
A targeted range of fundraising amounts (minimum and maximum amount) must be predetermined for an ECF campaign. The concept of ‘all or nothing’ is applied to the ECF campaign. An issuer must, at least, achieve the minimum target funding amount and it would, otherwise, be considered as an unsuccessful campaign. When the ECF campaign is unsuccessful, all the funds raised from the Platform will be returned to the investors respectively.
Q: What information or documents are required for ECF
application?
Please refer to Mystartr ECF Process: 5 Steps
Q: Can I create more than one (1) campaign at the same time?
No. Under the SC's Guidelines, you are only allowed to create one (1) campaign at any one (1) time.
Q: Can I use multiple ECF Platforms at the same time?
No. Under the SC's Guidelines, you are not allowed to use different ECF Platforms or on any stock market of Bursa Malaysia Securities Berhad concurrently. You are not allowed to switch to another ECF Platform after your campaign is hosted on an ECF Platform.
Q: Can I use ECF Platform and peer-to-peer financing platform ("P2P Platform") at the same time?
Yes. Under the SC’s Guidelines, you may use ECF Platform and P2P Platform at the same time provided that you have complied with the disclosure requirements as may be specified by each platform operator.