{"id":170,"date":"2019-02-18T14:19:35","date_gmt":"2019-02-18T06:19:35","guid":{"rendered":"https:\/\/sage-new-clone.local\/en-my\/blog\/?p=170"},"modified":"2026-05-13T00:12:57","modified_gmt":"2026-05-12T16:12:57","slug":"alternative-business-loans","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-my\/blog\/alternative-business-loans\/","title":{"rendered":"A guide to crowdfunding, venture capital and angel investors"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tGetting funding<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tA guide to crowdfunding, venture capital and angel investors\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\tAccessing finance for your start-up can be tough, but new funding options and crowdfunding websites like Kickstarter can help make your dreams a reality. Read our guide to learn how you can benefit from equity crowdfunding, Angel investment, Venture Capital and more.\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tJaclyn Lai<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

You might have the best business idea, but without adequate investment funds, it will be very hard to get your company off the ground. Only a few banks in Malaysia are willing to lend to start-ups, and that leaves many entrepreneurs with limited sources of investment. However, with a knowledge of alternative financing options like crowdfunding, peer to peer (P2P) lending, Venture Capital and Angel Investors, you might be able to access the cash you need to succeed.<\/p>\n\n\n\n

The good news is that the government is doing a lot to support Malaysia\u2019s small businesses, and the Security\u2019s Commission has now approved a total of 12 platforms<\/a> for equity crowdfunding and P2P lending (just two of the various forms of crowdfunding investment options). If your company is looking for investors, these new sources of financing might just offer you the support you need to turn your idea into a thriving business.<\/p>\n\n\n\n

Let\u2019s look at the five main sources of alternative funding for Malaysian businesses that are available today:<\/p>\n\n\n\n

What is crowdfunding?<\/h2>\n\n\n\n

Crowdfunding is a way of raising investment into a business or project which uses online platforms to promote the concept and raise funds. Crowdfunding websites, like Kickstarter, support crowdsourcing investment into your business. As opposed to traditional lending from a bank where you\u2019d receive a large lump sum from one provider, crowdfunding platforms allow many investors to contribute to your business.<\/p>\n\n\n\n

Methods of crowdfunding<\/h3>\n\n\n\n

There are numerous crowdfunding websites where you can promote your business or project. Different crowdfunding platforms will be appropriate for different kinds of projects. Here are the three main methods of crowdfunding:<\/p>\n\n\n\n

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  1. Equity Crowdfunding – <\/strong>Equity crowdfunding is most often used by businesses and start-ups to raise serious funds. When an investor decides they like your project they will normally invest a larger sum for some equity in your business, which they hope will give them a return once your company grows.<\/li>\n\n\n\n
  2. Rewards-based crowdfunding – <\/strong>Reward-based crowdfunding tends to be used for smaller projects – often arts and culture initiatives such as funding for a film or an exhibition. People will provide money but will not expect a cash return \u2013 the reward will be something like a free sample, or ticket to your event.<\/li>\n\n\n\n
  3. Donation-based crowdfunding – <\/strong>This is typically for charity activities or can sometimes be used for educational purposes. Donators are not expecting to be rewarded financially at the end of the project but donate because they are passionate in your cause.<\/li>\n<\/ol>\n\n\n\n

    What crowdfunding websites are available?<\/h3>\n\n\n\n

    Malaysia\u2019s crowdfunding scene is still relatively young, as platforms only really became available in 2012. Nonetheless, interest in, and awareness of crowdfunding has grown and there are now a range of websites on offer.<\/p>\n\n\n\n

    For rewards-based crowdfunding, Kickstarter remains the best-known crowdfunding platform worldwide. Nonetheless, there are other options beyond Kickstarter in Malaysia, including homegrown and PitchIN:<\/p>\n\n\n\n