How to fundraise?

ECF is an innovative form of alternative financing that enables private businesses to raise capital from a group of investors through an online fundraising platform. As an issuer, a business shall undergo thorough due diligence process by AMB Connect, including assessing the business proposal, evaluating shareholders' fit and properness, ensuring the accuracy of disclosure documents and also Shariah-compliance of the business.

Only deals duly screened and reviewed are hosted on the AMB Connect platform, allowing investors to select and invest in campaigns that meet their investment criteria. The fundraising exercise operates on an "all or nothing" basis, meaning the issuer must meet the targeted fundraising amount from investors, or the campaign is considered unsuccessful, and all monies collected are returned to investors.

Issuers can set two target fundraising amounts, a minimum target amount and a maximum target amount. If any of the target amount are met within the campaign period, the campaign is hence deemed successful.

Limitations of Raising on ECF Platforms

An issuer can only fundraise on one ECF platform at a time and can raise a maximum of RM 20 million collectively through ECF platforms in its lifetime, excluding its own capital contributions or any funding obtained through a private placement exercise. The ECF model provides a secure and transparent platform for businesses and investors to connect and collaborate, unlocking new growth opportunities for businesses and empowering investors to invest in high-potential businesses.

Last Update: 22 July 2024