MDV’s Venture Financing programme to complement investments under Dana Penjana Programme to boost the growth of Malaysian technology start-ups KUALA LUMPUR, Dec 15 (Bernama) --
Malaysia Debt Ventures Berhad (MDV), a subsidiary of the Minister of Finance (Incorporated) [MOF Inc] and dedicated technology financier, applauds the recent announcement by Penjana Kapital on the selection of eight (8) Venture Capital (VC) fund managers that will invest in Malaysian start-ups as part of the Dana Penjana Nasional programme. With a combined indicative fund size of RM1.57 billion under the programme, MDV is optimistic that the fund will revitalise the local start-up sector and drive the country’s economic recovery through the growth of technology and innovative companies.
From MDV's perspective, the new investments from Penjana Kapital’s VC partners will boost the growth of new technology start-ups and MDV stands ready to assist these start-ups further via its Venture Financing programme as a complementary source of capital to ensure the maximisation of returns for their businesses.
Currently, MDV is the only financial institution in Malaysia offering Shariah-compliant Venture Debt models via its Venture Financing programme that was first introduced in 2018. Through this programme, MDV has taken into its stride to pioneer and steer the growth of the venture debt market in Malaysia. However, to achieve this, MDV recognises the importance of synergy and collaborations with other funders within the ecosystem to provide a holistic and complete financing solution for start-ups. Through the Dana Penjana programme, potential investments by new venture debt firms will provide opportunity for MDV to embark on club or syndicated deals.
Commenting on MDV’s role in complementing the Dana Penjana programme, MDV’s Chairman, Khairul Azwan Harun, said : “As venture capital and private equity funds typically invest solely in the equity securities of their portfolio companies, we believe that our debt investments will be viewed as an attractive and complementary source of capital, both by the portfolio company and by the portfolio company’s financial sponsor. In addition, we believe that many venture capital and private equity fund sponsors encourage their portfolio companies to use debt financing for a portion of their capital needs as a means of potentially enhancing equity returns, minimising equity dilution and increasing valuations prior to a subsequent equity financing round or a liquidity event.”
With the Government’s continued commitment in supporting and enhancing the start-ups ecosystem in Malaysia, MDV as a dedicated technology financier in Malaysia is well-positioned to continue being the catalyst for growth of venture debt as a funding alternative for high-growth technology start-ups in Malaysia.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 technologybased 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)
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