PHL to adopt crowdfunding platform for startups soon

Good news for IT startups in the East Asean region.
The first Brunei, Indonesia, Malaysia, Philippines-East Asean Growth Area (BIMP-EAGA) equity crowdfunding platform will be launched during the first BIMP-ICT CEO meeting next week in Brunei Darrusalam.
Lawyer Samuel Matunog, president of the ICT-Davao chapter and chairman for BIMP-EAGA ICT cluster, said the crowd funding platform allows micro, small and medium enterprises to have access to angel investors.
The platform is an alternative form of finance which can be used to fund a project or venture by raising monetary contributions from a large number of people, he said.
The BIMP-EAGA equity crowdfunding platform will be powered by CrowdPlusAsia (https://www.crowdplus.asia).
During the meeting, Matunog said startups will be able to present their projects before possible investors who can fund and invest in the company.
“It’s always been a perennial problem among small IT companies and startups where to source capital,” Matunog said during this week’s edition of Wednesday’s at Habi at Kape at Abreeza Mall yesterday.
The strict regulations of banks and other financing institutions, in the Philippines for instance, prevents small companies and startups from growing and expanding.
In Davao City, almost 70 percent of ICT companies are MSMEs. These are companies which are 1,000 seaters and below that export and offer IT solutions to both local and foreign companies.
“Crowdfunding platform has been used in Asean countries like Malaysia and Singapore,” he added.
Matunog said many big names in the ICT industry like Google, Malaysian-based developers of mobile app Grab and Uber are examples of companies that sourced their capitalization from crowdfunding platforms.
However, the platform became successful in these countries because of the presence of laws that regulates the system.
Matunog said for the platform to succeed in the Philippines, there ought to be a law that will protect both the investors from fly-by-night start-ups and small enterprises.
During the meeting on May 11, a resolution pushing for the drafting of the law is expected to be one of the outputs, he added. CHENEEN R. CAPON