_{Chief Executive Officer of MDEC, Puan Surina Shukri}
 

· MDEC worked with 200 over companies through its Alternative Funding Program, raising RM19.89 million

· Partnership with 11 Crowdfunding Operators to help entrepreneurs tide current economic challenges

· MDEC will actively engage established tech entrepreneurs to pay-it-forward as investors on participating ECF and P2P platforms.
 
KUALA LUMPUR, Jan 29 (Bernama) -- The Malaysia Digital Economy Corporation (MDEC) on 27 January 2021 announced the launch of its Alternative Funding Program for the year 2021. This program will see MDEC partnering with 11 crowdfunding operators to help entrepreneurs tide the economic challenges brought on by the COVID-19 onslaught.

This is MDEC’s second year running the Alternative Funding Program led by its Global Growth Acceleration Division (GGA). This follows the successful launch of the same program in 2020 which saw a total of 16 companies successfully listed on participating platforms with a total of RM19.89 million raised.

Realising the pressing need that startups had in terms of business funding at the start of the COVID-19 pandemic, MDEC immediately sprung into action with a few funding facilitation programs. The Alternative Funding Program launched in April 2020 saw MDEC partnering with 7 crowdfunding operators to offer alternative channels for startups to obtain funding as traditional routes posed a strong challenge. Venture Capitalists (VCs) were also being less than receptive to new investments, especially towards early-stage startups due to the uncertainties caused by the pandemic.

Among the startups that successfully raised funding through the program include PolicyStreet who raised US$1.8 million (RM7.8 million), the largest funds raised to-date from an ECF platform in Malaysia.

“With the continued disruption to businesses caused by the COVID-19 pandemic in 2020, it is crucial for startups in Malaysia to be able to explore multiple avenues for funding. While initiatives like the Dana Penjana Nasional have done much to address the funding gaps for startups in Malaysia, it is in the best interest of MDEC for them to have more options to ensure sustainable cash flow. Backed by the strong outcomes from last year’s program, I believe ECF and P2P are great fundraising avenues for startups to consider,” said Surina Shukri, CEO of MDEC.

“While we were ranked 11th in the emerging startup ecosystem globally by Startup Genome in 2020, our ultimate goal is to be the top-ranking startup ecosystem in the world. Funding facilitation initiatives like our Alternative Funding Program are just one of the many efforts we are making to nurture our startup ecosystem to be top-ranked, which will further help the many as we strive towards Malaysia 5.0 and become the “Heart of Digital ASEAN,” Surina added.

A total of five ECF and six P2P platforms are taking part in this year’s Alternative Funding Program by MDEC and they are:

ECF
1. ATA Plus
2. CrowdPlus.asia
3. Eurecca
4. Leet Capital
5. pitchIN

P2P
1. B2B Finpal
2. CapBay
3. Funding Societies
4. microLEAP
5. MoneySave
6. QuicKash

Entrepreneurs who wish to explore this alternative financing option may submit their interest at https://mdec.my/gain/alternative-funding/. This drive begins 27 January 2021 until 31 March 2021. MDEC will offer priority assessment to all applicants by expediting the eligibility screening process before submitting the profiles to the applicants’ choice of ECF/P2P operator.

“MDEC has been promoting ECF and P2P funding platforms actively to startups and I believe that the concerted effort put in by MDEC has led to an increase in public awareness towards the benefits of ECF and P2P investment,” according to Wilson Beh, co-founder of Policy Street.

“To further encourage entrepreneurs to leverage on ECF and P2P platforms, our division will also engage the founders of MSC-status companies and other high-net-worth-individuals to pay-it-forward as investors on these digital financing platforms. Most industry leaders have experienced turbulent times and understand the need for support, particularly through financing,” said Gopi Ganesalingam, Vice President of MDEC’s Digitally Powered Business Division.

About Malaysia Digital Economy Corporation (MDEC)

Malaysia Digital Economy Corporation (MDEC) is a government agency under the purview of the Ministry of Communications and Multimedia Malaysia entrusted to lead Malaysia's digital economy forward. Incorporated in 1996 to oversee the development of the MSC Malaysia initiative, MDEC's primary mandate today is to accelerate the growth of digitally-skilled Malaysians, digitally-powered businesses and digital investments in Malaysia. MDEC is focused on creating inclusive, high-quality growth through the nationwide digitalisation initiatives that are in line with the Government’s Shared Prosperity Vision 2030 and firmly establishing Malaysia as the Heart of Digital ASEAN.

#LetsBuildTogether #DigitalMalaysiaForward

To find out more about MDEC’s initiatives, please visit us at www.mdec.my or follow us on:
Facebook: https://www.facebook.com/MyMDEC/
Twitter: @mymdec

SOURCE: Malaysia Digital Economy Corporation (MDEC)

FOR MORE INFORMATION, PLEASE CONTACT:
Nigel Yap
Brand & Strategic Partnerships
Malaysia Digital Economy Corporation (MDEC)
Tel: +60(16) 263 7167
Email: nigel.yap@mdec.com.my

--BERNAMA