How Does ECF Work for Businesses?

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 undergoes a rigorous due diligence process by pitchIN, including assessing the business proposal, evaluating shareholders' fit and properness, and ensuring the accuracy of disclosure documents.

Only vetted deals are listed on the pitchIN 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.

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 wopportunities for businesses and empowering investors to invest in high-potential businesses.