Crowdfunding investments aimed to steer away public from scams

Aside as a means to bring the capital market closer and more accessible to micro, small and medium enterprises (MSMEs) the Securities and Exchange Commission (SEC) is looking at crowdfunding as a means to steer away the public from investing in ponzi schemes and other dubious investments.

“On the part of the investor this is an opportunity for you to look into or learn alternative investment channels other than going into scams,” says SEC director Meonee Felizmenio Jr. during the SEC Roadshow on Capital Market Forma- tion for MSMEs and Startups held Feb. 15 at the Pinnacle Hotel in Davao City.

Felizmenio said these companies looking for crowdfunding investments are vetted by the crowdfunding intermediaries or platforms.

“They make sure there are sufficient information about these businesses before you are invited to invest into it,” Felizmenio said He said when one invests in ponzi schemes the investors has little knowledge about the alleged company being invested in.

For investors in a crowdfunding platform they can invest for as low as one thousand pesos

“So probably you are an investor and if you want to diversify then meron ka P10,000, you can look at the different businesses that are raising capital then invest separately,” Felizmenio said.

The SEC currently has three registered crowdfunding intermediaries.

He said through crowdfunding intermediaries MSMEs and Startups will have alternative sources of capital for their business.

“As a startup or MSME