Singapore-based equity crowdfunding platform Fundnel has received a provisional Capital Markets Services (CMS) license from the Monetary Authority of Singapore (MAS) — clearing a major regulatory hurdle within the industry. The CMS license empowers the company now to market its equity crowdfunding platform and deal in securities under Singapore’s Securities and Futures Act (CAP.289).
Kelvin Lee, CEO and co-founder of Fundnel, commented on the MAS approval saying,
Receiving this endorsement from MAS marks a new milestone on our corporate journey as we celebrate our first year anniversary this month. We will like to thank MAS for making this possible and commit to offering quality private investments on our platform. With due compliance to business conduct rules that seek to safeguard investors’ interests, our mission lies in connecting investors to promising private investments in an efficient, effective, and open manner.
The one-year-old startup facilitates the sale of securities in growth-stage and pre-IPO companies and receiving the license from MAS will now add wings to their journey. Fundnel will be an open market in itself as an ‘equity crowdfunding’ service. The company has closed 15 deals and helped businesses raise US$44 million through its platform.
Fundnel’s main target customers are institutional and accredited investors who can invest through the platform. Entrepreneurs that wants to raise money for their companies can choose between four models – mandatory convertible bonds, convertible bonds, debt and revenue sharing.
The company gets due diligence done from its network of investors before making an ‘anchor investment’. Once the anchor investment is made then only the follow-on investors contribute and create the ‘crowdfunding’ aspect of the platform. Fundnel is trying to make a difference in investment industry by providing entrepreneurs with an alternative channel for financing beyond traditional routes like VCs or bank loans. Lee added,
Staying ahead of the curve is imperative in any industry as we differentiate ourselves through the quality of our investment offerings. Echoing the trend of emerging technology companies in the market, we strive to be equally disruptive.
Based in Singapore, the company has always taken a regional approach, it has a team of over twenty people spread across regional offices in Indonesia, Malaysia and India. Earlier this year, it had collaborated with Business Angel Network Southeast Asia (BANSEA) to invest in early-stage startups.