Ata Plus Sdn Bhd has launched its equity crowdfunding (ECF) platform to Malaysian businesses and entrepreneurs with the goal of creating a wider local investment community.
Kuala Lumpur-based Asta Plus is now the sixth company approved and licensed by the Securities Commission Malaysia (SC) to operate an ECF platform in the country.
The company announced it is focused on “creating a thriving ecosystem for socially responsible and ethical Malaysian businesses.”
“At Ata Plus, we want to be able to help local companies grow and take their businesses to the next level through our ECF platform, in turn, facilitating the growth of small and medium enterprises as a significant contributor to our nation’s economy,” Elain Lockman, co-founder of Ata Plus said.
Apart from businesses seeking to raise funds, Ata Plus has a readily available community of investors comprising retail, angel and sophisticated investors, as well as an extensive network of partners to ensure a healthy funnel of quality deals and investment support.
Partners of Ata Plus — which include Cradle, MDEC, SME Corp, Biotech Corp, Platcom Ventures and many more — will back up the company in terms of deal flow, screening, investment administration and entrepreneurial development.
“Our partners provide support in the areas of deal flow, screening, investment administration and entrepreneurial development,” she said. “Collectively, they help manage risks and improve compliance for investors while providing valuable assistance for businesses to grow.”
Lockman is responsible for partnerships, deal flow, deal screening, risk management, and entrepreneur management for Ata Plus.
Ata Plus chairman Tan Sri Datuk Dr Abdul Samad Hj Alias expects their new ECF platform will play a key role in the local investment community.
“An alternative funding channel like ECF is an integral part of the rapidly growing movement for the democratisation of capital formation in Malaysia, and levels the field for both investors and entrepreneurs. At the same time, it increases engagement, equality and participation for all stakeholders,” Alias said.
Based on the ECF platform’s fund raising limits, an issuer can only raise up to RM3 million within a 12-month period, irrespective of the number of projects an issuer may seek funding.
Also an issuer can only utilise the ECF platform to raise a maximum amount of RM5 million, excluding the issuer’s own capital contribution or any funding obtained through private placement exercise.
There is no limit on investment amount for sophisticated investors.
As for angel investors, they are allowed a maximum of RM500,000 within a year, while retail investors are allowed a maximum of RM5,000 per issuer with a total amount of not more than RM50,000 within a 12-month period.