SECP launches crowdfunding platform for tech startups in Pakistan

The Securities & Exchange Commission of Pakistan (SECP), the financial regulatory agency of the country, has granted approval to the first technology-based crowdfunding platform for the commencement of live testing under the first cohort of Regulatory Sandbox.

Crowdfunding is a digital platform that provides opportunities to startups and SMEs to raise funds from investors in return for securities.

Facebook is launching a free cloud gaming service

“The approved Crowd Funding Platform would conduct requisite due diligence on behalf of investors so that only eligible issuers, meeting threshold criteria, pitch the issue through the crowdfunding platform and raise funds from investors,” said SECP on Twitter.

The CrowdFunding business model will be operated/tested in a live controlled environment under the supervision of SECP for 6 months.

Pakistanis get on board the 'Among Us' bandwagon

The applicants need to follow the conditions laid out by SECP in order to get approval, at the end of the testing period applicant has to submit a comprehensive report to the Commission on the fund-raising activities carried out through the platform, which will then determine the future course of action for regulating crowdfunding platforms in Pakistan.

Crowdfunding platforms such as Kickstarter and GoFundMe have been a source of funding for start-ups for years and are a popular way to attract investment from around the world and now Pakistanis can also avail of this facility locally.