Page 21 - SC Annual Report 2018 (ENG)

Securities

Commission
Malaysia
ANNUAL
REPORT
2018

Chart 1
Diversity in financing opportunities for businesses

Stages of funding
Private Equity

Main Market
Pre-IPO/IPO
ACE Market
LEAP Market
Series B onwards
Venture Capital
UP to RM5 Mn
ECF
(early-stage capital)
Series A (RM1 Mn)
Angel P2P financing
investor
Seed (capital for growth)
Maturity of
MSME business

Source: SC

consumers. Recognising the importance of the offering cheaper, faster and more convenient
digital economy in fuelling economic growth and delivery channels. Each avenue is also tailored to
opportunities, initiatives in Budget 2019 were meet the unique needs of businesses at every stage
proposed towards supporting new technology of their business lifecycles.
development and ensuring sufficient funding for
entrepreneurs through conventional as well as
alternative financing sources.

In line with these developments, capital markets too Did you
have evolved to cater to a wider spectrum of know?
MSMEs. While traditional sources of funding such as
banking, public equity and debt remain relevant, • 693 businesses have been financed via
alternative avenues of financing such as Equity ECF and P2P financing since 2015.
Crowdfunding (ECF), Peer-to-Peer (P2P) Financing,
Venture Capital (VC), Private Equity (PE) and Leading • Malaysia’s six P2P financing platforms
Entrepreneur Accelerator Platform (LEAP) are fast raised RM180.05 million in 2018 – this
gaining acceptance as complements to traditional is a growth of 452% from 2017.
funding channels. 93% of P2P investors are repeat
investors.
These alternative financing avenues succeed because
they enable underserved issuers to connect with
traditionally untapped pools of investors, while

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