The Muamalat Newsletter Vol.1 2023

47 FEM Newsletter | June 2023 References: Adhikary, B. K., Kutsuna, K., & Hoda, T. (2018). Crowdfunding—types and models. In Crowdfunding: Lessons from Japan’s Approach (pp. 9–20). Springer. https://doi.org/10.1007/978-981-13-1522- 0_2 Beier, M., Früh, S., & Jäger, C. (2019). Reward-Based Crowdfunding as a Marketing Tool for Estab- lished SMEs: A Multi Case Study. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3338084 Brown, T. E., Boon, E., & Pitt, L. F. (2017). Seeking funding in order to sell: Crowdfunding as a marketing tool. Business Horizons. https://doi.org/10.1016/j.bushor.2016.11.004 Chishti, S. (2016). How peer to peer lending and crowdfunding drive the fintech revolution in the UK. New Economic Windows, 55–68. https://doi.org/10.1007/978-3-319-42448-4_4 Choo, K. G., & Madden, R. (2017). Crowdfunding Malaysia’s Sharing Economy Alternative Financing for Micro, Small and Medium Enterprise (p. 9). Collins, L., & Pierrakis, Y. (2012). The venture crowd: Crowdfunding equity investments into business (p. 36). NESTA. Department of Statistics Malaysia. (2016). Economic Census 2016: Profile of Small and Medium Enterprise. Gerber, E. M., Hui, J. S., & Kuo, P.-Y. (2012). Crowdfunding: Why people are motivated to post and fund projects on crowdfunding platforms. Proceedings of The International Workshop On Design, Influence, and Social Technologies: Techniques, Impacts and Ethics, 10. https://doi.org/http: // dx.doi.org/10.1145/2530540 Hornuf, L., Schmitt, M., & Stenzhorn, E. (2018). Equity crowdfunding in Germany and the United King- dom: Follow-up funding and firm failure. Corporate Governance: An International Review. https://doi.org/10.1111/corg.12260 Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study. Journal of Business Ventur- ing, 29(1), 1–16. https://doi.org/10.1016/j.jbusvent.2013.06.005 Thies, F., Wessel, M., & Benlian, A. (2014). Understanding the dynamic interplay of social buzz and contribution behavior within and between online platforms - Evidence from crowdfunding. 35th International Conference on Information Systems “Building a Better World Through In- formation Systems”, ICIS 2014. with total funding of RM 19.1 million (Digital News Asia 2021). Conclusions IInvestment-basedcrowdfunding platforms can be considered a marketing tool for small firms (Brown et al., 2017). First, a project can be used as a research tool to assess the quality of creative ideas by tracking the number of investors and the feedback from social media, and organizations can compare their product ideas with those of competitors (Mollick, 2014; Thies et al., 2014). Second, crowdfunding can be used to promote a new product, reaching not only people who back the project but also the entire crowdfunding community (Gerber et al., 2012). Finally, fund seekers can use crowdfunding as a direct sales channel with the first samples or versions of offerings and ensure a readily available sales pipeline (Beier et al., 2019). through equity crowdfunding was RM 8 million in 2016. The value increased almost double the following year to RM 17.1 million in 2017 (Digital News Asia 2018). The significant increment denotes that crowdfunding activities are doable and can be practised within Malaysia’s financial environment. Next, in 2018, the total fund raised via this activity was RM 21.6 million, a considerable increment over the previous year. It marks the highest recorded amount raised before it experienced a minor decrease in 2019 with RM 20 million (Digital News Asia 2019a). Latterly, 2020 recorded another marginal decrease Authors’ email: 1. nuraqilahhazirah@usim.edu.my 2. norasiah@ukm.edu.my