Private Equity Investment is an online platform where entrepreneurs can raise funds for their business from a pool of investors. Companies who want to be listed will provide information on the business, the amount of capital needed in exchange for shares offered. This way, investors will have a transparent means to assess and take up stakes in the venture.

Raising funds through Private Equity Investment means you get to swap shares in return for the financial assistance given by investors. For the investors, they could achieve higher returns than they would in peer-to-peer lending but also bear the risks of the businesses they backed. As for the business owners, the amount of investment acquired would not be bound as a debt.

Pitching guidelines & eligibility

Any company from various sectors and growth are welcomed to pitch their business. However, SRB intends to primarily invest in business opportunities across various industries that comply with the Shariah principles with the following requirements stipulated in OUR INVESTMENT CRITERIA.

Yes, if your business is NOT SIGNIFICANTLY (less than 33% source of revenue) involved in the following activities :

  • Gambling
  • Liquor and liquor-related activities
  • Pork and pork-related activities
  • Non-halal food and beverages
  • Tobacco, e-cigarettes and tobacco related products & activities
  • Adult-related content and entertainment; e.g pornography
  • Manufacturing and trading of weapons
  • Financial services based on interest
  • Conventional insurance

Understanding & preparing

To get your business funded by SRB, you’ll need to go through 2 (two) screening processes.

Level 1 Screening

At this point, it is handy to have your business plan including your latest financial position and at least a 3-year financial projection ready, as this is where you will submit information on your business, state your funding requirements and what you will be using the funds for. In order to support the information provided, you will also need to enclose your business plan together with your application. (The business plan is required only for the purpose of facilitating the internal assessment of the application

Meanwhile, you can go ahead and continue preparing for the 2nd screening, whilst waiting for the Level 1 results.

Level 2 Screening

This screening stage looks into the credit-worthiness of your business and primary team members. You will need to complete a form stating the main contact details, company information and address, as well as a list of your team members identifications. We will then run these through CTOS, CCRIS and DSCHEQs.

It will take up to 5-7 business days to process the information you provide. In return, you will receive a notification email and report indicating if you’ve cleared the first screening process.

Assuming that you have everything prepared and complete the two screening processes consecutively, it should not take longer than 1 to 2 months.

Application requirements

It is up to you to offer what you feel is a fair and reasonable share of their business in return for the amount of funding you intend to raise. Investors are not able to make investment bids for an equity stake and have to commit to investing at the offered level of the equity stake or not invest at all. This means that you could set the minimum amount of investment an investor can make in exchange for shares. You should, however, aim to offer equity at a level that is going to be attractive to potential investors.

For example, if you are a start-up business that offers only 5% equity in return for RM100,000 of funding, then you are effectively valuing your business at RM2,000,000; which in most cases will prove to be unreasonable and unlikely to reach your target.

Behind every strong company lies its core team. Investors will be interested to know that you share your business with a team with the right skill sets, highly dedicated and experienced individuals. Sharing a little insight about your team will help ensure the investors that you have the right capability to carry out the proposed plan and deliver an exit/return on their investment.