Everyone is eligible to invest so long as they have been verified as an investor by completing our registration process. This includes filling up their personal particulars and satisfying our internal AMLA and KYC screening tool.

You can register as an investor simply by signing up on our website. During this period, you can proceed to explore our existing crowdfunding campaigns.However, if you wish to invest, you need to complete your registration process asa verified investor by furnishing your application with more details.

Investors are classified into three categories, namely retail investors, angel investors, and sophisticated investors. Depending on your classification, you mayhave certain limitations set on your investment limit.

According to Guidelines set by the SC, your investor category will depend on your net worth and income.

The 3 types of investor categories are:

Sophisticated Investor: A sophisticated investor may refer to a High-Net-Worth Individual, High-Net-Worth Entity, or an Accredited Investor.

A High-Net-Worth Individual refers to an individual whose total net personal assets, or total net joint assets with his or her spouse, exceeds RM3 million or its equivalent in foreign currencies, excluding the value of the individual’s primary residence OR whose gross annual income exceeds RM300,000 or its equivalent in foreign currencies per annum in the preceding 12 months.

A High-Net-Worth Entity refers to a corporation with total net assets exceeding RM10 million or its equivalent in foreign currencies based on the last audited accounts.

Angel Investor: An angel investor refers to an individual whose total net personal assets exceed RM 3 million or its equivalent in foreign currencies, OR whose gross total annual income is not less than RM 180,000 or its equivalent in foreign currencies in the preceding twelve months, OR who jointly with his or her spouse, has a gross total annual income exceeding RM 250,000 or its equivalent in foreign currencies in the preceding twelve months.

Retail Investor: A retail investor is someone that does not fall under the categories of either sophisticated investor or angel investor.

Based on the investor classification above, theSC has set certain investment limits on investors.

Retail investors - Up to RM 5,000 per issuer, with a maximum of RM 50,000 investment within a 12 months period.

Angel investors - Up to RM 500,000 within a 12 months period.

Sophisticated investors - no limit.

Any investment monies made to any issuer will be deposited directly into a separate trust account.

The trust account is administered by an independent registered custodian and we have engaged Universal Trustees (M) Bhd as our licensed custodian. The funds are to be released only when the targetted amount has been met and otherconditions satisfied - like no material adverse change during the offer period and cooling off period of six (6) business days have expired.

You will be given a cooling off period of six (6) business days during which you may request a refund.

• the discovery of a false or misleading statement in any disclosures in relation to the offer
• the discovery of a material omission of information required to be disclosed in relation to the offer
• there is a material change or development in the circumstances relating to the offering or the issuer

A nominee structure is a method to facilitate investment into a company. Under the Companies Act 2016, a Malaysian private limited company e.g. Sdn Bhd is allowed to have up to 50 shareholders at any time. This may not be suitable in the case of equity crowdfunding since it generally attracts a large number of investors.

To facilitate the investment, we have designed a nominee structure which allows us to hold the shares on your behalf as a nominee.

Note that before being allowed to invest in a company, you must first agree to thenominee structure by agreeing to the nominee agreement.

To illustrate, once your investment in a company is successful, the company will instruct its company secretary to issue and allot shares to the nominee. To view your shareholding position, you can access your investor dashboard on the platform.

When you invest in growing companies and startups, you are investing for the time when the company may potentially grow larger and you may exit when thereis an IPO or a trade sale.

You may realise your investment returns in several ways:

1. when a company chooses to distribute dividend from a portion of the company’s earnings to shareholders
2. when you sell your shares for a higher value than when they were purchased. This can happen through:
   
   
   • trade/sale when you find an interested buyer or through a secondary market
   • acquisition or purchase by another company
   • the company decides to go for public listing/IPO e.g. your shares are publicly traded on a stock exchange
   
   
   

   Since you are investing in an early stage company, the failure rate is high and there is no guarantee that you will have the opportunity to liquidate or sell your share(s) when you want to.

To avoid conflict of interest, the platform (including its individual directors and shareholders) will disclose to the public on our platform if:

• we hold any shares in any of the issuers hosted on its platform; or
• pay any referrer or introducer, or receives payment in whatever form, including payment in the form of shares, in connection with an issuer hosted on our platform.

Any locally incorporated company from various sectors and stages - whether a start-up, growth stage company, or even social enterprise - all are welcome to host their company on the platform.

However, the SC has set forth several requirements that companies must complywith prior to hosting:

Companies that can raise funds through ECF:

• Locally incorporated companies
• Limited liability partnerships

Companies that are prohibited from raising funds through ECF:

• Commercially or financially complex structures (i.e. investment fund companies or financial institutions.
• Public-listed companies and their subsidiaries
• Companies with not business plan, or business plan to merge or acquire an unidentified entity (i.e. blind pool)
• Companies other than a microfund that propose to use the funds raised to provide loans or make investment in other entities.
• Any other type of entity that is specified by SC

An issuer may only raise, collectively, a maximum amount of RM20 million through ECF platforms in its lifetime, excluding the issuer`s own capital contribution or any funding obtained through a private placement excersize.

To raise through Equity Crowdfunding, companies have to provide Leet Capital information on their business, shareholders and directors. The companies also have to clearly state the allocation of the funds and why it is required, which should be shown in relevant business cases and projections.

Most importantly, the SC has several guidelines that mandate for various levels of audited and certified financial information depending on the amount of money intended to be raised.

As a company seeking to be hosted on our platform, you are required to provide the following:

• information that explains key characteristics of the company
• information that explains the purpose of the fund raising and the targeted offering amount
• information relating to the business plan of the company
• Financial information relating to the company eg audited financial statements or certified financial statements or information by the company’s management (if the company is newly established)

A company proposing to be hosted on our platform shall ensure that all information submitted or disclosed to an ECF operator is true and accurate and shall not contain any information or statement which is false or misleading or from which there is a material omission.

Once you agree to host on our platform, we will charge a one time administrative fee of RM 2,000.

In addition to the above, we will charge a fundraising fee of between 5% to 7% for funds successfully raised.

The fee will cover the charges for setting up a crowdfunding campaign on our platform, roadshows and effecting a nominee arrangement for one year.

A company seeking to raise money on Leet Capital has to apply and undergo a due diligence process by Leet Capital.

If your application is approved by Leet Capital, you will sign an Issuer Agreementwith Leet Capital which sets out the agreed fee and other terms and conditions required for you to be hosted on our platform.

After that we will assist you in creating a crowdfunding campaign site on our platform and help you launch your campaign, which typically runs for around 30-60 days.

As a platform, we are required by the SC to carry out a due diligence exercise onprospective issuers planning to use our platform. We will perform the necessary due diligence (see below) to ensure that all disclosed documents and informationsubmitted by the issuers are verified and accurate. The companies that host on our platform will undergo several checks against public information and databases e.g. CTOS, bankruptcy search relating to the company and its directors and senior management.

It is a requirement that we ensure the issuer’s disclosure document lodged with us is verified for accuracy and made accessible to investors through the platform

Additionally, the scope of the due diligence exercise by our platform shall include taking reasonable steps to:

• conducting background checks on the issuer to ensure fit and properness of the issuer, its directors, senior management and controller; and
• verify the business proposition of the issuer

If the funds are successfully raised, the campaign will undergo a cooling-period of six (6) business days, before the execution of agreements between all shareholders.

During the cooling period, investorswill be allowed to withdraw theirinvestment. After the expiry of the cooling off period above andyou, the issuer, have satisfiedall the disbursement conditions, we will instruct the custodian to disburse the funds raised to you.

As an issuer, you may only host one crowdfunding campaign at a time e.g. on one ECF platform at a time. This requirement is imposed by the SC under the Guidelines.

To encourage more individual investors to participate in ECF, the government had announced in Budget 2021 that a qualifying individual who invests in ECF would be entitled to an income tax exemption, subject to conditions as stipulated in the Income Tax (Exemption) (No. 4) Order 2022 [P.U.(A) 142] (“Tax Exemption Order”).

For more information, please refer here

The investment made through ECF must be on or after 1 January 2021 but not later than 31 December 2023.

No, only qualifying individual investors can apply for the ECF tax exemption.

Definition of “qualifying individual” can be found under paragraph 2 of the Income Tax (Exemption) (No. 4) Order 2022 [P.U.(A) 142] (“Tax Exemption Order”).

For more information, please refer here.

The investment made through ECF is not disposed of, either in full or in part, within 2 years from the date the investment is made. Please refer to the following illustration:

*Deadline is in accordance with national tax filing timeline

Date of investment refers to the closing date of the issuer’s fundraising campaign on the ECF platform. However, if the investor exercised his cooling off rights, the investor will not be entitled to apply for the tax exemption.

You may make multiple investments in different ECF platforms in a year. The exemption shall be:

1. An amount equal to 50% of the amount of total investment made by the qualifying individual and shall not exceed fifty thousand ringgit for each year of assessment; and
2. Limited to 10% of the aggregate income of the qualifying individual in the basis period for a year of assessment in which the exemption is granted.

1. Engage ECF operator for details on ECF tax exemption. Investor may be required to provide ECF operator with additional information and declaration.
2. ECF operator would need to verify the information provided by investor. Once the information is verified, it will be submitted to the Securities Commission Malaysia (SC).
3. The SC will verify the information provided by the ECF operator
4. ECF operator will provide investor with the annual certification of investment upon obtaining SC’s verification. Investor can use this certification when applying for the ECF tax exemption.

Yes, you are eligible for the tax exemption (subject to conditions stipulated in the Tax Exemption Order), provided the nominee company is:

1. Incorporated under the Companies Act 2016;
2. Resident in Malaysia; and
3. Established by an ECF operator in Malaysia to receive investments from a qualifying individual for investment purposes through an equity crowdfunding platform into an investee company