INVESTREE Philippines Inc., a crowdfunding firm owned by Investree Singapore Pte. Ltd. and Filinvest Development Corp. (FDC), is winding down its operations three years after it launched in the country.
Crowdfunding is a fundraising activity typically conducted through an online platform for startups and small and medium enterprises.
FDC said in a disclosure to the stock exchange Friday Investree Philippines would apply for the shortening of its corporate term to September 30, 2025.
“Investree PH is working diligently to facilitate a smooth transition following due process in accordance with SEC [Securities and Exchange] regulations. All its stakeholders, including investors, SME partners and employees, are being properly informed,” FDC said.
“The company will continue to facilitate the payment of notes according to the terms and conditions of its agreements. Investree PH expresses its gratitude to its stakeholders for their trust and support,” it said.
Investree Philippines is the first crowdfunding intermediary and funding portal registered with the SEC since the rules and regulations covering crowdfunding took effect in July 2019.
It operates as a lending-based crowdfunding platform whose crowdfunding activities involve banks or qualified buyers as lenders, and small, medium and emerging enterprises (SMEs) as borrowers.
Investree Philippines’ crowdfunding portal has had 43 issuers and one investor with 110 notes issued, for a total amount of P172.15 million as of end 2021.
It had three investors during the same period, including Investree Singapore, Andremere Holding Corp. and Netbank (A Rural Bank) Inc.
Investree Philippines was granted permanent license by the SEC in 2022.
Crowdfunding basically involves three parties: the entrepreneur or project initiator; the supporters or those willing to fund the business idea or project; and the platform or moderating organization that brings the entrepreneur and supporters together to realize the business idea or project.
It may be donation-based, where supporters pool their resources to support a charitable cause; or reward-based, where supporters give money in exchange for a “reward,” usually a product produced by the project initiator.
The SEC has been actively promoting crowdfunding for micro, small and medium enterprises (MSMEs). At total of 333 MSMEs have raised P1.94 billion in capital for 1,143 projects as of end-2023.