Nature of Crowdfunding

What is crowdfunding?

According to MAS (Consultation Paper)
last revised on February 2015

"1.1 Crowdfunding generally refers to a capital-raising approach that seeks to raise funds from a large number of individuals. Typically, funds are raised through an online platform using the following forms of crowdfunding:

(a) Donation-based crowdfunding
(b) Reward-based crowdfunding
(c) Lending-based crowdfunding
(d) Equity-based crowdfunding"

FinReg business tip

Crowdfunding generally refers to raising money through leveraging from an online community (e.g Kickstarter, Indiegogo) and circumventing the utilisation of banks or venture capital funds. In Singapore, Securities-Based Crowdfunding (SCF) platforms are regulated through a Capital Markets Services License (CMSL) requirements under the Securities and Futures Act (SFA).