Southeast Asia property crowdfunding company CoAssets saw listed projects give total pay-outs of more than S$120,000 during the last 16 months, according to a statement by the company.
The start-up firm, funded under the i.JAM Reload scheme managed by the Media Development Authority (MDA), and incubated by Expara IDM Ventures,
Getty Goh, Co-Founder of CoAssets, said: “Quite often, crowdfunding platforms highlight their ability to raise funds for their projects. However, our focus is on our users’ experience and on whether the companies listed on our site are able to deliver on their promise.
“Up to this point, we are pleased to note that businesses listed with us have already given payout/redemption of more than S$120,000. In the next 12 months, users can expect payouts from the deals to be more than S$700,000.”
Projects listed on CoAssets currently include property bulk purchases, property presales and crowdfunding deals. In total, more than S$32million worth of deals have been done. Specific to the crowdfunding portion, the amount was more than S$4.5million.
“The funding arrangements are between the Singapore corporations and the individual users. As part of the conditions, the amount that businesses receive has to be more than S$100,000 and the duration can be no longer than one-year. This really hits the sweet spot for companies that are looking for short term working capital and users who want to make some returns,” added Goh.
“To date, I have supported two companies with funds amounting to more than S$5,000. So far, it has been a pleasant experience. I like the fact that I am helping Singapore companies and making some money while I am at it. I am also empowered to decide how much support I want to give and the short-term commitment of one-year is definitely something attractive,” added Rachael Lim, a 25-year-old CoAssets user.
“We have been fortunate that there has been no unpleasant experiences so far. All the companies have been timely in their payment and they provide constant updates to our users. However, we are aware that there will inevitably be some deals that might go awry and we have put in place a myriad of consumer protection measures.
“In the event that something does go wrong, we will assist our users to seek the relevant legal and financial resolutions.” said Dr Seh Huan Kiat, Co-Founder of CoAssets.
Goh added: “The crowdfunding space in the region is currently seeing a lot of exciting developments. For example, the Malaysian government is due to pass some equity crowdfunding regulations in the coming months.
“We also understand that the Monetary Authority of Singapore is closely looking at the development of the crowdfunding space. There were also recent announcements from the Singapore Stock Exchange (SGX) that it was exploring the possibility of setting up a crowdfunding platform for start-ups.
“All these will ultimately add to the credibility and vibrancy of the crowdfunding movement, and pull this ‘online innovation’ from being a niche service to something that can benefit the masses,”he concluded.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.
