Investing via equity crowdfunding is a long-term game. The investment is relatively ‘illiquid’, which means you can't easily sell your shares and exit your investment. But you can potentially make your exit when the company is going public (IPO) or there is a merger and acquisition.
Some issuers may offer a buyback option at a certain target price within a predetermined time frame. This allows investors an opportunity to exit their investments and earn their returns.
One of our latest issuers, Baloy, which raised RM6.16 million in equity crowdfunding, one of the highest ECF amounts in Malaysia, for example, is targeting a buyback within 36 to 60 post-ECF fundraise, at a target price that matches the issuance price.