The Malta Business Bureau and the University of Malta have set up a crowdfunding platform, the first in Malta.

Crowdfunding is a fast-growing alternative means to raise funding for projects or ventures, raising many small amounts of money from a large number of people.

“The Malta Business Bureau has been keen on introducing crowdfunding to Malta ever since it was recommended in a report it published on market gaps in access to finance in Malta,” MBB president Mario Spiteri explained.

“The outcome of that report clearly showed that the Maltese credit market needs a diversification of financial instruments – particularly for start-ups – because this part of the business lifecycle is not being catered for by the more established credit institutions. Furthermore the traditional instruments they provide such as bank loans and overdrafts are not necessarily the appropriate financing they should be after at this stage of their development.”

University rector Juanito Camilleri said the university understood the potential crowdfunding has to finance businesses at an early stage, when they require it the most.

“I’m excited to see this project come to fruition as it will complement the university’s efforts to encourage entrepreneurship among students, following the successes of the Master’s in Knowledge-based Entrepreneurship. Crowdfunding will boost innovation and entrepreneurship, particularly if the local and international communities are encouraged to participate actively.”

Crowdfunding platforms take the form of a website that allows would-be sponsors to make offers to funders and help the two parties interact.

Entrepreneurs and businesses can utilise the platform to promote their ideas, raise funds, conduct market research on their product, and interact with potential customers.