· A total of 49 applications under the TSFRF received from technology start-ups during the first application window

· Subsequent round of application period to run for two weeks from 8 June 2020 to 21 June 2020

KUALA LUMPUR, June 1 (Bernama) -- Malaysia Debt Ventures Berhad (MDV) today announced the closing of the first application window for the RM100 million Technology Start-Ups Funding Relief Facility (TSFRF), which was opened for applications beginning 18 May 2020 until 31 May 2020. During this period, MDV had received a total of 49 applications under the TSFRF, with financing amount requested between RM1 million to RM2.5 million, from eligible technology companies in various technology sectors including ICT, E-commerce, Logistics, Fintech, Big Data, Medical, property related apps and Electric Vehicle (EV).

MDV’s Chief Executive Officer, Nizam Mohamed Nadzri said that, “As the TSFRF is yet to be fully committed, the subsequent application window for the facility will run for another two weeks starting 8 June 2020 until 21 June 2020. The gap between the application periods is to allow for MDV to proceed with the screening process by the facility’s dedicated screening committee so that we are able to keep to the faster processing timeframe under the facility and ensure timely disbursement to successful applicants.”

All applications will be screened based on three main criteria i.e. the company’s strategic positioning in its related segment/sector; its potential for regional/global growth; and its competitive positioning. Factors that will be considered within the above criteria include Management, Venture Capital Investor Support, Revenue and Revenue Growth, Enterprise Value, Market Opportunity and Competitiveness. Following the screening by the committee, all applications are then required to go through MDV’s credit assessment.

“The majority of the technology companies that had applied for the TSFRF are those with strong fundamentals and viable business model that yield an average revenue of between RM100 thousand to RM700 million with company valuation of between RM5 million to RM500 million,” explained Nizam. “However, due to the current economic and business conditions, these companies are in need of an immediate cash flow support to keep their business afloat and to continue to grow, which is what the TSFRF was developed for.”

The TSFRF, which is offered in the form of working capital and business expansion requirements, aims to provide immediate, affordable and targeted cash flow support for VC or Government Agency-backed technology start-ups companies that are impacted by the current adverse economic conditions and funding disruptions. The facility is targeted to benefit between 40 to 60 technology start-ups to address liquidity challenges by having on-hand working capital facilities to mitigate cash flow issues going forward. The facility is offered at an interest rate of 3.5% per annum on the amount outstanding.

Since the initial announcement on the TSFRF by the Minister of Science, Technology & Innovation, Yang Berhormat Khairy Jamaluddin, MDV had received overwhelming enquiries from technology start-ups on the financing facility. As part of its efforts to introduce and promote the facility, MDV had arranged several webinar sessions for potential applicants in collaboration with agencies such as Malaysia Digital Economy Corporation (MDEC), Agensi Inovasi Malaysia (AIM), Scaleup Malaysia, Invest Penang and Malaysia Venture Capital & Private Equity Association (MVCA), including an open session streamed via MDV’s FB Live platform.

For further information on the TSFRF, please visit MDV’s website at www.mdv.com.my.

About MDV – The Nation’s Technology Financier

Malaysia Debt Ventures Berhad (MDV) is a wholly-owned subsidiary of the Minister of Finance Incorporated established in 2002 with the objective of providing flexible and innovative financing to develop high-impact and technology-driven sectors of the economy, identified and prioritised by the Government as future engines of growth. MDV’s strategic role in the technology financing ecosystem in Malaysia is defined by its approach to funding which is different from other financial institutions. MDV’s niche is helping to fund young technology-based companies or start-ups that are unable to secure financing from commercial financial institutions due to their novel business model, lack of proven operating track record and lack of collaterals. With the rapid rate of technological and digital advance, and Malaysia’s continued push towards becoming an advanced nation, MDV will continue to have a significant role to play particularly in financing emerging technology areas and in achieving its vision of becoming the Nation’s Technology Financier.

For more information on MDV, visit http://www.mdv.com.my/

SOURCE: Malaysia Debt Ventures Berhad (MDV)

FOR MORE INFORMATION PLEASE CONTACT:
Name: Amelia Ong Abdullah
Senior Assistant Vice President, PR & Communications
Malaysia Debt Ventures Berhad
Tel: 03 – 2617 2841
Email: amelia@mdv.com.my

--BERNAMA