Scopeer to launch crowdfunding platform in September: CEO

Crowdfunding Limited Co. (Scopeer) will launch its web platform by the beginning of September, CEO Abdulrahman Al Theeb told Argaam.

The crowdfunding firm aims to support small and medium enterprises (SMEs) in securing funding to expand their businesses in the Saudi market. It also gives investors the opportunity to acquire stakes in startups.

Scopeers’ platform will provide investment and financing solutions to SMEs through offering their shares to investors, Al Theeb said.

Four firms have already applied to get finance and arrangements are being made to offer their shares on Scopeer, he added, noting that he expects each company to get SAR 2-3 million from investors.

Saudi Arabia's Capital Market Authority (CMA) on Tuesday granted financial technology experimental permits (ExPermit) to Scopeer and Manafa Capital Co., in order to create equity crowdfunding platforms.

Scopeer aims to attract 10,000 investors, funds, investment firms and qualified investors, as well as individual investors who are allowed to invest SAR 20,000 in a company, with a maximum investment of SAR 100,000 a year, Al Theeb said.

As part of Scopeer’s core business as offering manager, it conducts studies on the firms’ financial position, credit score and risk levels, in cooperation with Saudi credit reporting firms, in order to provide investors with sufficient data, he said.

SMEs need to meet a number of requirements in order to get funding through the platform, including having at least one year of business. Moreover, the offering must not be less than 10 percent with the maximum of 30 percent of the company value.

The value of the company must not exceed SAR 10 million after the crowdfunding round, as the maximum funding amount cannot exceed SAR 5 million, he added.