THE crowdfunding business of the Gotianuns and a Singaporean firm was given a greenlight by the Securities and Exchange Commission (SEC), the regulator announced recently.
The Commissioners, meeting en banc last week, approved the application of Investree Philippines Inc. for a permanent license to operate as a funding portal and act as a crowdfunding intermediary, following a review of the company’s operations since the issuance of its provisional license last January 7, 2021.
Investree Philippines is a joint venture between Filinvest Development Corp. and Investree Singapore Pte. Ltd. It is the first crowdfunding intermediary and funding portal registered with the SEC after the “Rules and Regulations Covering Crowdfunding” took effect in July 2019.
The company operates a lending-based crowdfunding platform whose activities involve banks or qualified buyers as lenders, and small, medium and emerging enterprises as borrowers.
As of December 20, Investree Philippines’s crowdfunding portal had a total of 43 issuers and one investor with 110 notes issued, for a total amount of P172.15 million. The company had three investors during the period: Investree Singapore, Andremere Holding Corp. and Netbank (A Rural Bank) Inc.
The grant of the permanent license is part of the SEC’s efforts to promote crowdfunding as a suitable investment among Filipino investors and to provide more fundraising options for SMEs, the regulator said.
Crowdfunding is a fundraising activity typically conducted through an online platform for startups and small and medium enterprises. It involves three parties: the entrepreneur or project initiator; the supporters or those willing to fund the business idea or project; and, the platform or moderating organization that brings the entrepreneur and supporters together to realize the business idea or project.
Lending-based and equity-based crowdfunding activities involve the offer of securities in the form of debentures or shares, which means that they are subject to securities regulation in many jurisdictions.
According to the Securities Regulation Code, securities shall not be sold or offered for sale or distribution, without a registration statement filed and approved by the SEC. Crowdfunding securities may be exempted from registration, provided that the issuer, intermediary and investors comply with the CF Rules.
(Local crowdfunder): FDC shares closed Friday at P7.50, down P0.20 from the previous close.