For Issuers

Equity Crowdfunding Process

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A. Create Account

Start your fundraising journey by creating an ISSUER account here. You will need to appoint at least one corporate representative to manage your issuer account and to interface with pitchIN.

B. Submit Application

Once you are ready, submit a fundraising application from your account. You will need to provide details about your company, your fundraising plans, and a general idea of the deal structure for the campaign. If you need help, feel free to contact [email protected]

C. Initial Evaluation

We will get in touch to evaluate the readiness and suitability of your company for equity crowdfunding.

Once your application is approved, you will be required to execute an ECF Agreement with pitchIN, complete and submit forms required for onboarding and pay a fee of RM 1,888.

Click here to download the related documents.

D. Campaign Building

Preparation is key for a successful campaign. We will assign a dedicated deal lead to work with you to:

E. Due Diligence

This is a required process where we will verify the business proposition and the people behind the business, as mandated by the SC Malaysia.

This will include requesting the necessary information and documents from you as well as conducting credit checks on the people behind the company. We will also verify the disclosures that will be made to potential investors.

Click here to download the related documents.

F. Final Evaluation

Your campaign can only be launched once you have completed the necessary campaign building and due diligence activities. We will conduct a final evaluation before the campaign can be promoted to the public.

Once your campaign has been approved to launch, you will need to pay a fee of RM2,000 to be hosted on pitchIN.

G. Launch Campaign

This is the time to promote your campaign and get investors! Use the tools on the platform to help you track, plan and execute your campaign. Work with your dedicated deal lead to plan and strategise your campaign.

You should aim for a swift campaign, closing it in 3 months or less. Otherwise, investors will lose interest.

H. Campaign Ends

Fundraising campaigns on pitchIN follows an all-or-nothing model:

  • If your campaign meets the fundraising target, it will be considered SUCCESSFUL. Once the campaign ends, there will be a cooling-off period of six-business days for investors to request any refunds, as mandated by the SC Malaysia.
  • If it fails to meet the target, the campaign will be considered UNSUCCESSFUL and any monies raised will be refunded to investors.

A success fee of 4-7% is charged upon SUCCESSFUL completion of your ECF campaign.

I. Share Allotment

We will work closely with your company secretary to allot shares. The fundraising proceeds will only be disbursed to your company once shares are fully allotted to investors of the campaign.

By default, shares will be allotted to and held under Pitch Nominees Sdn Bhd (“Pitch Nominees”) on behalf of investors. A Digital Certificate will be issued to investors as proof of their beneficial ownership of the shares. We charge a nominee fee of RM2,888 - RM3,888 per year depending on the number of investors under management.

If you prefer, you may also allow some or all investors to subscribe to the shares of the company under their own name.

J. Update Investors

As a responsible issuer, you will need to update investors about the company via pitchIN. At a minimum, this should be done on a semi annual basis. The update should include:

  • A summary of the business performance
  • Financial performance of the company, supported by audited financial statements or management accounts
  • Business outlook for the company, including targets and challenges
  • The status of utilisation of proceeds and committed milestones

K. List on PSTX

Once your company is ready, you may want to consider listing your shares on the pitchIN Secondary Trading Market (PSTX). This will allow existing investors to partially exit their investments into your company, and new investors to come in by purchasing existing shares.

All companies that have successfully raised with us are allowed to list their shares on PSTX without any additional charges. Read more about listing on PSTX here.

Warning
Equity Crowdfunding is risky. You are investing in early stage companies which may not do well and could even fail. You could lose part or all of your investment. You may not be able to sell your shares easily. Learn more