FundedHere stalls launch of Singapore private exchange over licensing issue

Singapore-based crowdfunding platform FundedHere has stalled the launch of FundedX, a new private stock exchange to facilitate the trading of shares of high-growth startups and privately-held companies in Southeast Asia, because of licensing issues.

In a statement, the firm said FundedX will be required to be an approved exchange or a recognized market operator in order to operate.

“FundedX will refrain from operating until it has received the relevant authorisation to do so,” FundedHere said.

FundedHere earlier claimed that FundedX is not a private stock exchange and that the the platform is merely one where buyers and sellers can register their interests to buy or sell a particular company stock at the pre-determined price set by FundedX.

However, the company issued another clarification saying it has discovered “that it is factually incorrect to state that the business model that FundedX intends to engage in is licensed under FundedHere’s capital markets services license”.

A Monetary Authority of Singapore spokesman told the Business Times that an entity that operates a platform to facilitate secondary trading of securities is required to be an approved exchange or a recognised market operator under the Securities and Futures Act.

Established in 2016, FundedHere is Singapore’s first crowdfunding platform to offer both equity and debt deals for promising companies.

In a statement announcing FundedX early this week, FundedHere said it has already received interest from several investors, companies and shareholders throughout Southeast Asia to participate on the platform.

Last year, FundedHere raised a combined S$505,500 ($375,334) for two local startups including BEAM, which offers concierge warehousing and logistics solutions on a mobile app, and NephTech, a cloud-based solution to offer surveillance and management of chronic renal disease patients.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.