In the US, tech startups are among the most sought after companies by venture capital. Just think the like of Google or Yahoo. During their early days, it is common, that these brilliant grads operating the company from their garage. Most started with little or zero capital, and gradually funded by venture capitals, until what they’re today.
The scenario doesn’t much different here although IT is relatively young industry in Malaysia. Instead of the privately held venture capital companies, we have government’s arm on MALAYSIA Debt Ventures Bhd (MDV), formerly known as MAVCAP, that provide financial adi to these companies.
It is interesting to know that as of Dec 2009, a total of RM2.2 billions has been disbursed to 249 locally incorporated companies ranged from biotechnology , outsourcing and technology sectors. Although this looks like a huge amount, but R&D that become the foundation of such companies doesn’t come cheap.
Read the press release.
27 FEBRUARY 2009 (NEW STRAITS TIMES): VENTURE FIRM MDV DISBURSES RM2.2B TO LOCAL FIRMS
MALAYSIA Debt Ventures Bhd (MDV) said it has disbursed RM2.2 billion to 249 locally incorporated companies as at December 2008.
The state-owned venture capital firm approved 78 loan applications worth RM658 million in the 2008/2009 financial year, while 34 applications worth RM420 million are pending assessment and approval.
In a statement, MDV said its loan portfolio has reached RM1 billion.
“In the information and communications technology (ICT) sector where loans revolve as fast as the project turnaround, this significant amount of loans outstanding is an achievement for us,” said MDV managing director and chief executive officer Md Zubir Ansori Yahaya.
MDV said it will continue to help develop the ICT and biotech sectors, with an emphasis on digital content, broadband and outsourcing. For biotechnology, the emphasis will be on industrial, agriculture and healthcare.
“The current economic slowdown saw more small and medium enterprises coming to MDV for funding. As bigger technology projects are on hold, we see the emergence of smaller projects,” said Zubir.
To date, MDV has received biotech loan applications of RM300 million, of which some RM100 million have been approved.
“We hope that more local entrepreneurs will take this opportunity to look at alternative financing options during the current economic climate. MDV is glad to be of support in this trying time,” he added.
