Saudi SMEs have raised $267mln from crowdfunding: Saudi CMA
In the current year, crowdfunding platforms collected about $26.66mln, all of which are for entrepreneurial companies
Saudi riyal. Image used for illustrative purpose.
By Staff Writer, Arab News
Saudi SMEs have raised SR100 million so far this year through crowdfunding, Mohammed Al-Quwaiz, Saudi Capital Market Authority president at the General Authority for Small and Medium Enterprises (Monsha’at) has revealed.
“In the current year, from the beginning of the year to the middle of the year, crowdfunding platforms collected about SR100 million, all of which are for entrepreneurial companies. It's possible that a record was made when a company got financed within 10 minutes in terms of the time required to raise funding,” Al-Quwaiz said in a finance lecture.
“I saw a number of colleagues working on some crowdfunding platforms. This platform has become an important tool for financing companies specifically based on property rights or shares that are more compatible with the nature of entrepreneurial projects or debt instruments in a later period,” he said.
He said on the financing side most businesspeople think about bank financing first, which often serves the entrepreneurial companies.
“The other traditional method of financing, if a project is in its first stages, it requires funding from family and friends, and the main added value at this stage was to keep the regulatory authorities away from this issue significantly,” he said.
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