The Securities and Exchange Commission approved the country’s first crowdfunding platform, a joint venture between the Gotianun-owned Filinvest Development Corporation and Investree Singapore.
The SEC en banc approved the application of Investree Philippines to operate as a funding portal and act as a crowdfunding intermediary on December 22.Crowdfunding is a fundraising activity conducted through an online platform for startups and small and medium enterprises.
The process involves three parties: the entrepreneur or project initiator; supporters or those willing to fund the idea or project; and the moderating organization bringing the entrepreneur and supporter together to realize the idea.
Of the different types of crowdfunding methods, Investree will operate as a lending-based platform. Thus, crowdfunding activities will involve banks or qualified buyers as lenders, and will be limited to small, medium and emerging enterprises as borrowers.