Homa2U, the next prop unicorn or next undercorn mule - invest via ECF Equity Crowd Funding ECF

Just participated in my 2nd ECF (Equity Crowd Funding) exercise (after SpeedHome formerly SpeedRent) to invest in Homa2U, a platform modeled after Overstock company where the company sells excess building materials at good discounts. Because these building materials are excess, the price are suppose to be lower than buying retail.

ECF is considered very high risk investments as returns can be 0. The 2 questions I always ask is if the company can scale and founder's experience.

(1) Can the platform scale ?

Probably, because it's selling cheaper than market items, these kind of companies usually do well in down cycle market (eg think Carousell). Rise in demand for better furnished units also will be key driver to the business.

(2) Founder's experience ?

Pennie Lim the founder herself comes from similar industry previously. Company seems to be quite establish with million dollar revenue.

I am giving this company a try.

Disclaimer : This is not advice to invest, ECF investing is almost an investment that will fail as 90% of companies bankrupt after 3rd year in operations. Companies which raise funds using ECF also do not give dividends.

Updates 20191116

Homa2u equity crowd funding was successful completed and it also received MyCIF investment. The MyCIF investment is definitely a boost to the company's image as MyCIF (Malaysia Co Investment Fund) is a basically Malaysia government using a special vehicle to participate in crowd funding activities which I believe to be deemed worthy of getting a government loan.