Earlier in the year, it was announced that the Singapore Exchange (SGX) and Clearbridge Accelerator (CBA) had signed a memorandum of understanding (MoU) to partner to create a crowdfunding platform for small and medium sized businesses (SME) to raise capital through the sale of equity. At the time, Finance Magnates had written that the initiative made strategic sense for the SGX, as the venue was already being used as a conduit for firms to raise money by taking their company public or selling bonds. As such, the addition of a crowdfunding platform would position the SGX as a full stack destination for small to larger companies to raise capital.
Following the previous MoU, the SGX and CBA announced plans today for the development of the crowdfunding platform for SMEs. Named CapBridge, the funding platform is expected to launch in the second half of 2015. The platform will be developed and supported through a $1.5 million grant that will be provided over three years. As part of the project, the SGX and CMA are also in discussions with financial institutions and collaborators to create demand among investors and companies to use CapBridge.
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Commenting on the news, Mohamed Nasser Ismail, Head of SME Development & Listing, SGX stated, “There is a vibrant and sizeable start-up community in Singapore but challenges remain for them to secure financing especially in their early stages of development. SGX is well placed to support initiatives to improve access to equity for such enterprises as part of our efforts to provide efficient, cost-effective and sustainable access to capital for SMEs at every stage of their growth.”