Investree venture obtains SEC license to operate as a crowdfunding platform

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The Securities and Exchange Commission has granted Investree Philippines Inc., a joint venture of Filinvest Development Corp. and Investree Singapore Pte. Ltd. ― a permanent license to operate as a crowdfunding platform.

It approved IPI’s application for a permanent license to operate as a funding portal and act as a crowdfunding intermediary, following a review of the company’s operations since issuance of its provisional license on January 7, 2021.

Crowdfunding is a fundraising activity typically conducted through an online platform for startups and small and medium businesses.

IPI is the premier crowdfunding intermediary and funding portal registered with the SEC following the entry into force of crowdfunding rules and regulations in July 2019.

The company operates a loan-based crowdfunding platform whose crowdfunding activities involve banks or qualified buyers as lenders, and small, medium and emerging businesses as borrowers.

The Investree Philippines crowdfunding portal had 43 issuers and one investor with 110 notes issued for a total amount of P 172.15 million as of December 20, 2021,

The company had three investors during the same period, including Investree Singapore, Andremere Holding Corp. and Netbank (A Rural Bank) Inc.

The granting of the permanent license is part of the SEC’s efforts to promote crowdfunding as a suitable investment among Filipino investors and to provide more fundraising options for SMEs.

Crowdfunding involves three parties: the entrepreneur or project leader; supporters or those who wish to finance the business idea or project; and the moderating platform or organization that brings together the entrepreneur and his supporters to realize the business idea or project.

Both loan and equity-based crowdfunding activities involve offering securities in the form of bonds or stocks, which means that they are subject to securities regulations in many jurisdictions.

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