CAPITAL.MY

Alternative Funding Sources for Businesses

Crowdfunding Businesses for Everyone

Crowdfunding Businesses for Everyone

Current Status Pre-Revenue
Amount Invested RM 50,000
Funding Required RM300,000 or less
Description We, Vmake Biz, aim to provide an online platform for potential businesses or existing business owners to seek small to medium amount of investments from the general public to either build on new businesses or expand upon existing ones. What we aim to achieve is to provide a fair opportunity and a space for local businesses that caters from simple to niche ideas. Business ideas can range from a local grocer in a rural area to local brands looking to make a mark in their own industry. At the same time, allow the general public to support an idea that they believe in and support their establishment.
Business Opportunity Our platform caters to small and medium businesses including home businesses. A section of the industry where they can only rely on Financial Institutions or family and friends to fund their business. Most crowdfunding platforms are currently directed to once off projects, such as Kickstarter or Mystartr, or are equity crowdfunding targeted at major/breakthrough businesses in larger sums, such as PitchIn or Crowdonomic. All these platforms vary from our targeted market, and currently do not overlap with our target market.

The crowdfunding market shows a considerable growth of 10-20% annually projected up to 2021 (source: Statista, 2017). And with the Government’s SME Masterplan (2012-2020) aim of contributing 41% of our GDP by 2020, it is a vastly untapped area with great opportunities.

The general public are also now more educated in terms of investment, however a lot of their investment options are limited, as Mutual Funds and Shares has a high entry level price while fixed deposits do not give exciting returns. With our platform, the general public can invest starting from as low as RM10, making it accessible to a wide reach of users. This gives investors an opportunity to be investors to an idea that appeals to them, and at the same time be a customer of their supported business.

Revenue / Business Model Business owners will firstly get their funds through our platform, and from the total funds our business will take 8% (including GST) as commission and the remaining 92% goes to the business.

Business owners will then be bound for 6 years, to return 30% of their nett profits after tax yearly to their investors through our platform, where each investor will get a percentage of returns based on their percentage of contribution to the funding. Our business will also take a 8% Commission from the nett earnings, leaving the business 62% of their nett earnings to reinvest or redistribute.

There are various terms and conditions for the above basic principle as well, all vetted through legal advice and are ready for reference which we can provide upon request, as they are too lengthy to be included here.

Management Team The current Management Team consist of the two founders, Su Fay May and Tong Ngee Chong.

Su Fay May is the current CEO and acting CMO for the company, while Tong Ngee Chong is the co-CEO and acting COO for the company. We are currently in search of a CFO to cover the financial aspects of the company.

Ms. Su is currently in charge for the general direction for the company. She has also planned out various marketing strategies which requires funding to be executed, and is the think tank of the company. Mr Tong is in charge of the operations, SOP and technical aspects of the company, ensuring that all the processes and details are all in place.

We currently have a legal adviser that assists us with the legal aspects of our business. We also currently have a third-party web design team to maintain and upkeep our website functions.

Company Background We begin setting up the company in 2013, which we then then took 2 years to design the website, payment system and terms. We had a soft launch in 2016, but currently do not have any projects under our platform.

A total of RM 50,000 has been spent to set up the company, including the build-up of our platform, legal advises, audits and various expenses.

We currently lack the funds to perform marketing strategies and to gain awareness in the market.

Funding Milestone We are looking for a total of RM 100,000 funding for our marketing and various expansion efforts.

RM 40,000 will be used for advertising and promotion of the platform through social influencers and existing businesses. Social platform advertising is also included in this amount, but as a secondary medium.

RM 20,000 will be used for upgrade of website function, to improve user friendliness and smoother payment.

RM 10,000 will be used for maintenance and running of the platform.

RM 30,000 is planned to used to do a test expansion to the nearby countries such as Thailand and Singapore.

% Equity Allocation 10% for RM 100,000
Risks and Mitigation If in event of slow uptake after executing marketing strategies, the platform is to be put up for sale for acquisition after 2 years.
Exit Strategies 1) Buy back of 10% equity in 5-10 years for RM200k or 10% nett profit during year of exit, whichever is higher.

2) 10% of total sum from deal struck with acquirer.

Company Name VMAKE BIZ SDN BHD
Website/Facebook http://www.vmake.biz
Business Address 39, JALAN SS 24/25, TAMAN MEGAH, PETALING JAYA, SELANGOR
Contact Person Su Fay May