ECF 101

Introduced to Malaysia in 2015, ECF is a method of raising capital by offering shares in your company to a large number of investors through an online platform. In return for their investment, these investors receive a stake in your business, giving them the potential to benefit from your company’s growth and success.

Unlike traditional methods, ECF allows businesses to access a wider pool of investors—from retail investors to high-net-worth individuals to professional investors —enabling you to raise funds more quickly and efficiently.

You may offer different types of shares and terms to suit your fundraising needs:

• Ordinary Share: Allows investors to become part-owners of the business and are entitled to a share of the profits (if declared).
• Preference Share: Offers priority over ordinary shareholders when it comes to dividend payments and liquidation proceeds. Typically does not offer voting rights.
• Redeemable Share: Allows the company to buy back or "redeem" the shares at a future date, either at the company’s discretion or under certain conditions.
• Convertible Share: Allows investors to convert their shares into ordinary shares at a later date, typically at a pre-agreed conversion rate

Read more about the different type of shares here.

Yes, ECF is regulated by the Securities Commission (SC) of Malaysia under the Guidelines on Recognized Markets. Only registered platforms, like pitchIN, are allowed to host companies on their platform for ECF.

You can raise a maximum of RM 20 million via ECF platforms throughout the lifetime of your company. This excludes any own capital contributions or any funding obtained through a private placement exercise.

You will need submit an application to pitchIN and undergo a due diligence process with pitchIN. This includes assessing the business proposal, evaluating shareholders' fit and properness, and ensuring the accuracy of disclosure documents.

Read more about the process here.

1. Brand positioning and validation: Equity crowdfunding on pitchIN provides more than just funding—it also acts as a valuable marketing tool. This can help you create organic marketing opportunities, broadening your brand’s reach without spending large sums on traditional advertising.
2. Access to a Diverse Investor Pool: ECF allows you to connect and engage a large and diverse pool of investors - from retail investors to more sophisticated individuals and professional investors. This gives your business a higher likelihood to secure funding from people who are genuinely interested in your industry and business model.
3. Build an Engaged Investor Community: ECF investors often become passionate brand advocates who are committed to your success. Many of them are eager to offer valuable feedback and promote your products or services within their circles.
4. Flexibility in Funding Goals: ECF provides you with the flexibility to set funding goals and timelines that suit their needs. Whether you're seeking capital for product development, expansion, marketing, or hiring new talent, you can tailor your campaign to match your objectives.
5. Track Record and Reputation: As one of the leading equity crowdfunding platforms in the region, we have a proven track record of successful campaigns. We are trusted by both investors and companies alike. We can help you maximize the success of your fundraising campaign.