Singapore-headquartered Fundnel Limited has launched its collaborative investment platform, and the company claimed that it was the first of its kind in Asia, housing investment opportunities in sectors such as technology, consumer and retail, healthcare and education.
The marketplace platform aims to expedite capital raising activities among small and medium enterprises (SMEs).
To date, Fundnel has successfully completed six equity and revenue-sharing deals worth approximately $5 million on the platform.
“These startups are based in multiple geographies across Southeast Asia, including Singapore, Indonesia and Hong Kong, and the company is optimistic that the uptake momentum will continue.
The platform delivers a holistic programme ranging from due diligence and pre-investment anchoring procedures for investors to product and fundraising advisory for entrepreneurs, the company said in a statement on Friday.
“The power of Fundnel’s platform lies in its ability to identify pockets of capital and disburse them to these SMEs in an efficient and structured manner. As a result, this opens doors to the public for the investment into real and relatable businesses around us, creating liquidity in private markets,” the statement read, noting that everyday investors will now have the opportunity to support their favourite businesses such as a bubble tea franchise, grocery store or even a neighbourhood coffee shop.
Fundnel’s user-friendly platform allows users to filter their search according to geography, industry and deal type, and all investors can participate in revenue sharing based investments.
In accordance with local regulations, only institutional and accredited investors are given additional access to investment opportunities such as equity (in the form of mandatory convertible bonds), convertible bonds, and bonds.
Fundnel co-founder Kelvin Lee said the company’s aim is to get the rest of the population reinvested into real businesses around them again.
“Offering more than just a secured investment platform that has been stress-tested repeatedly for technical errors, we place particular emphasis on due-diligence and “anchoring” of our deals prior to launching a fundraising campaign,” he said.
Anchoring is the process of securing a lead investor prior to launching the deal publicly.
Co-founder Sam Ng added that the global volume of online transactions in alternative assets in 2015 is estimated to have more than doubled to $34.4 billion in 2015.
“As a runner-up to North America, Asia is fast becoming a crowdfunding hub and Fundnel’s presence in the region presents us with immense potential to tap on this growth. Since establishing Fundnel in early 2015, we have witnessed growing interest from entrepreneurs and investors as they begin to see crowdfunding as an alternative investment option.”
Fundnel is founded by a team of former investment bankers, consultants, investment managers and entrepreneurs. Covering several markets in Asia, Fundnel has opened offices in Hong Kong, Indonesia and Malaysia.