ViTrox founders and their US$34mil bet on an Industry4.0 Cambrian era in Malaysia 

  • Consider Malaysia to have the ability to be the East’s Silicon Valley.
  • Create businesses that will result in a lot of high-quality tasks.

Vitrox founders Steven Siaw, Chu Jenn Weng and Yeoh Shih Hoong hope their Cambrian Fund will ignote a new wave of innovators in Malaysia's startup ecosystem.
What does one do when their business is celebrating its 20th anniversary when they are 53 years old and Forbes names them among the 50 richest Internationals with an estimated US$ 450 million as of 2023?

The answer, according to Chu Jenn Weng, creator, managing director, and leader of Vitrox Corporation Bhd, was to reaffirm his stated desire to inspire Malaysians to establish their own world-class businesses and to employ enough skilled workers for Malay skill that we do not need to concentrate on multinational corporations for good jobs, as he shared with Digital News Asia in 2014.

Roping in his co-founders, Steven Siaw and Yeoh Shih Hoong, the trio announced on July 26 the launch of Cambrian Fund, a US$ 33.9&nbsp, million ( RM150 million ) venture capital initiative managed by Singapore-based Southern Capital Group, aimed at fostering Malaysia’s next wave of Industrial 4.0 innovators.

” Twenty-four years before, in 2000, we started ViTrox in a small room with only our goals and perseverance. We want to promote a strong tech ecosystem in Malaysia and help local tech startups right now,” Chu said.

Southern Capital will pay the difference, with each of the pair contributing RM10 million. Targeting a lift RM150 million, the remaining RM90 million may be raised from other buyers. The owners are casting a wide net and inviting additional industry figures and key players to the habitat of the fund. ” We ask our peers to undertake to a’ by Malay, for Malay ‘ philosophy”, Chu said.

With ViTrox being an automated vision assessment tools company, it is no wonder that the bank may rely on early-stage tech companies in areas such as equipment vision, artificial intelligence, and robotics. &nbsp,

The Cambrian Fund, which honors the geographical era that saw an increase in sophisticated existence forms, aims to infuse Malaysia’s it landscape with a comparable burst of innovation. &nbsp,

The fund’s target aligns attentively with ViTrox’s skills in appliance vision, robotics, and integrated electronics solutions for the semiconductor and electronics industries. The fund can harness the founders ‘ extensive industry expertise and sites to find and cultivate promising startups thanks to this proper alignment.

Create businesses that will result in a lot of high-quality tasks.

Kenneth Tan, CEO of Southern Capital, emphasised the reliability of the program. ” We believe that together we may play a role in establishing a new kind of venture capital fund, one that is based on knowledge, engagement, creativity, and a desire to give back”, he said. Tan emphasized the potential for the foundation to spur the development of reputable businesses that will create thousands of high-quality jobs and change years ‘ lives.

The Cambrian Fund’s release comes at a critical moment for Malaysia’s software market. There is a renewed interest in moving up the value chain in the silicon and related industries with the president’s most current release of the National Semiconductor Strategic Plan. By promoting the ecosystem’s application and design elements, the fund intends to match these efforts.

We think Malaysia has the ability to be the Silicon Valley of the East, according to Chu, referring to the firm’s wider vision. This account is a step towards building a solid local technology cluster, specialising in equipment eyesight, AI, and automation”.

The firm’s technique goes beyond mere monetary investment. The founders intend to offer coaching, business connections, and proper guidance to their investment companies as a result of their experience leading ViTrox to become a global leader in innovative X-ray inspection for the electrical and electronic industry.

Steven, a founder who is also senior executive vice president of ViTrox, highlighted the value of this hands-on approach:” Many of these entrepreneurs lack industry experience or exposure. We can bridge the gap, assist in accelerating this process, and prevent costly mistakes.

The fund will consider opportunities in Southeast Asia as well, despite its primary focus being on Malaysian startups. This regional perspective is in line with the founders ‘ goal of making Malaysia the center of technological innovation in the area.

The Cambrian Fund faces challenges, including the long-term nature of investments in hardware-software integrated products. The fund’s investments, in contrast to e-commerce ventures that might yield returns in a year or two, will likely take five or more years to bear fruit. ” We need to educate the investing community about the nature of this kind of business”, Chu acknowledged.

Despite these challenges, the founders remain optimistic about the fund’s potential impact. They see it as a crucial step in creating a self-sustaining ecosystem of innovation, where success breeds further success.

Initiatives like the Cambrian Fund will be crucial in developing the talent and ideas that will propel Malaysia’s technological advancement as it keeps positioning itself as a major player in the global semiconductor landscape. The ViTrox founders and Southern Capital are well-positioned to identify and nurture the next generation of tech leaders in Malaysia and beyond with their successful pasts and deep industry knowledge.

The tech ecosystem will closely monitor which startups will win the most industrial innovation awards in Malaysia.