CapBridge, CIMB tie up to help SMEs raise private capital

Singapore

INVESTMENT platform CapBridge has inked a Memorandum of Understanding with CIMB to help regional SMEs (small and medium enterprises) and mid-corporate firms raise private capital via the startup's investment platform or its affiliated private exchange, 1exchange (1X).

Both CapBridge and 1X, which are based in Singapore, are backed by the Singapore Exchange.

The "wide-ranging" partnership will see CapBridge and CIMB refer clients to each other, said Johnson Chen, founder and CEO of CapBridge, in an email exchange with The Business Times on Sunday.

For one, clients of the Malaysian banking group can choose to raise capital via a campaign on the CapBridge private capital raising platform, said Mr Chen.

Meanwhile, other firms that have live capital-raising campaigns on the CapBridge platform will have access to CIMB's banking services. CIMB may also act as financial advisers for company campaign transactions.

Meanwhile, CIMB's SME and mid-corp clients could also consider a listing on the private securities platform 1exchange, an affiliate of CapBridge. Privately-held companies may list up to 30 per cent of their shares on 1X, where they can be traded by accredited investors.

When asked if there are any referral fee arrangements involved, Mr Chen said: "In line with industry practice, there are some common industry referral fee arrangements in place ... The focus here is on strategic partnering and deal-sharing."

Through the partnership, CapBridge hopes to reach CIMB's clients in Malaysia, Singapore, Indonesia, Thailand and Cambodia

Victor Lee, CEO of group commercial banking at CIMB, said on Sunday that the collaboration will help the bank's clients grow by tapping alternative capital from global investors. "(This) collaboration ... also further strengthens our refocused SME proposition to help them grow through tech-driven end-to-end solutions, and by transforming our customer journey."