MDV hosts Malaysia’s first KL Venture Finance Forum 2022 to accelerate growth of home-grown unicorns

MDV hosts Malaysia’s first KL Venture Finance Forum 2022 to accelerate growth of home-grown unicorns

  • M’sia must embrace brand new tech, become innovators instead of mere users
  • Govt to streamline value chain in the startup industry growth, provide support in order to startups 

Minister of Science, Technology & Innovation Adham Baba and Khairul Azwan Harun, MDV chairman at the press conference.

Malaysia Debt Ventures Berhad (MDV), a subsidiary of the Ressortchef (umgangssprachlich) of Finance (Incorporated) [MOF Inc] and an agency underneath the purview of Malaysia’s Ministry of Science, Technology & Development (MOSTI) organised the nation’s first KL Venture Finance Forum 2022 (KLVF22) at the Westin Kuala Lumpur, Monday. The forum was organised in conjunction with MDV’s 20th anniversary celebration to memorialize its establishment by government back in 2002.

The forum was went to by the minister of Science, Technology & innovation (MOSTI), Dr . Adham Baba, who have delivered the keynote address to greater than 200 participants. Deputy Finance Minister II, Haji Yamani Hafez Musa, MDV’s Chief, Khairul Azwan Harun and MDV’s Chief Executive Officer Nizam Mohamed Nadzri, were also within attendance.

Adham in his presentation congratulated MDV for its efforts to foster and grow the startup funding ecosystem through the hosting from the forum as it has the potential of becoming an essential platform for understanding exchange.

“Innovation is the main driver in developing new opportunities to produce higher socioeconomic value for society as well as the country. Startups have pioneered many of the world’s greatest technological innovations, Hence, the government believes that home-grown technology startups are able to contribute significantly to the country’s technologies sector to generate and maintain a sustainable financial growth and are an essential part in helping Malaysia’s transition to some digital economy and high-income nation, ” he said.

The government by means of MOSTI has determined the efforts that the country needs to embark on to remain competitive and also to become a leader within innovation and a center for technology startups in the region. The efforts include to improve the value chain in the startup industry growth, incentives to boost the public and private capital market, as well as delivering strong support in order to startups in beating the challenges plus constraints that are hindering their potential to get the nation’s following unicorns.

Also speaking in the forum, deputy financing minister II, Haji Yamani Hafez Musa echoed similar emotion when he stated that for Malaysia to become high-income and high-tech country, it must embrace the use of new-technology and to become innovators instead of mere users.

“In developing local technology and innovation, the government has always been consistent in the efforts to reinforce the SME and startup ecosystem. Nevertheless , to support the government’s efforts, the private sector needs to perform a bigger role in helping to drive economic growth, especially through the development of disruptive and high-value technologies driven by local talent, ” he explained.

MDV’s leader, Azwan, said that it was a proud moment for MDV as it charted a new training course by becoming the pioneer in venture debt financing in the country. Venture debt as a financing means offers several advantages in order to companies as it is even less dilutive for shareholders than Venture Capital.

“The main attraction of such a financing facility is that it offers an extension of the company’s cash runway, enabling the startup to use the additional funds to create further data to improve its valuation, hold off its next collateral raising, ” this individual said.

However , in satisfying the potential of venture debt as an alternative funding supply for startups within Malaysia, Azwan emphasises that there needs to be improved partnerships between market players such as MDV’s collaboration with Kenanga IB last year in establishing a fintech fund.

He also stated that listed corporates plus big conglomerates within Malaysia have the capacity to play a more energetic role in developing the startup funding ecosystem by trading to assist local online companies and must rise to the challenge.

Currently, MDV is the only standard bank in Malaysia providing a Shariah-compliant venture debt model through its venture financing programme that was initial introduced in 2018.

The one-day forum with all the theme “Accelerating Startups” was successful within bringing together policy manufacturers, investors and bankers, as well as founders plus key personnel of numerous startups, in an energetic discourse on how start-up funding is changing in the region particularly the role of venture finance as an alternative financing pertaining to tech startups, as well as key opportunities, difficulties, and current trends in the startup room.

The particular forum’s panel loudspeakers included Shahril Sufian Hamdan (Economic Director, PMO), Dr . Ong Kian (Former Deputy Minister MITI), Taufiq Iskandar (CIO Penjana Kapital), Martin Tang (Genesis Alternative Endeavors Singapore), Dr . Gregory Bournet (PwC Malaysia & Vietnam), Nizam (MDV), Adrian Yap (Moneymatch), Warren Leow (Inmagine), Noomi Fessler (Lapasar) and Mohd Farid Mohd Rosli (MDV).