If Malaysian Prime Minister Mahathir Mohamad could crowdfund the $250 billion Malaysia debt and raise $2 million in 24 hours, there’s good news for Malaysia small businesses trying to raise cash flow in a similar manner. Many options exist for startup funding in Malaysia, with crowdfunding serving as one of the most recent over the past several years.
Crowdfunding is exactly like it sounds, raising money from a crowd of people. There are two common types of small business crowdfunding are peer-to-peer lending and equity crowdfunding.
- Peer-to-peer lending is a way for individuals or businesses to lend money to small business owners. It’s similar to a traditional loan with less stringent requirements and repayment happening at regular intervals with interest being paid. The Fundaztic platform is one option for Malaysian small businesses to find investors for peer-to-peer lending.
- Equity crowdfunding usually starts with a fundraising campaign for a specific amount of money. Anyone can contribute toward the campaign. In exchange, investors get shares in your company or other perks for their investments. You can try equity fundraising on the ATA Plus platform, which serves businesses in Malaysia.
