Venture capital is still an emerging industry in Malaysia.
We rarely heard people and friends around us in venture capital.
Venture capital in Malaysia are mostly funded by government to nurture SME so that we are too dependent to FDI.
Venture capital is a big industry in US. Surprisingly India and China has quite a lot of venture capital firms as the innovation and entrepreneurship in these countries are good.

Any one here is working for Cradle fund, MTDC or MAVCAP. Share your opinion of these industry and insights here. I believe many fresh grads will want to know more. I think Private fund is the next step for those in the venture capital as the salary is really low compare to Private fund.

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This post has been edited by prole: Sep 30 2024, 09:09 PM

U r in VC or in MAVCAP?
yupe, not juz india, China as well.
Our neighbour Singapore also started to get more ppl in VC and they focus not juz sg but China and SEA

Cradle is not a VC. It's a seed provider. Anyone who can demonstrate to have met the requirements can get some funding. Of course, things get harder as you go on.

Cradle is motivated by development. Giving a chance to entrepreneurs who normally wouldn't have. That said, they are not driven entirely by profits. The VC scene is not that active here because our innovation output is considered very low. There's no real demand for VC funding, when I say that I mean, there are not many ideas that might be profitable. Think about it, since when does our society encourage creativity and risk-taking? We are users of technology than pioneers of technology.

Private equity is generally divided into:

- venture/seed capital
- growth capital
- leveraged buyouts

Yes Malaysia seems to be far more in the latter category than others. I have to agree with feynman up there that Malaysian entrepreneurs are seem to be happier copying off a good idea rather than coming up with a better idea of their own. There are two laundry stores next to each other in my neighborhood and their only competitive advantage is who can give better rates on their hastily hand written signs in front of each store. Couldn't the second laundry owner be a bit more original?

Getting back to the point. If you're interested in entrepreneurship, venture or seed capital there are plenty of opportunities there but as chgchksg128 pointed out salaries are low. To be perfectly frank there are very few opportunities for fresh grads if all they want to do is makan gaji.

One level up in growth capital there is for example Navis Capital and a few others. Private equity is not an easy industry to get in unless you're from some top management consulting company or the like though.

@tishaban
what is growth capital company in Malaysia beside Navis?
what is their startegy differnt with VC and PE?

VC paid is RM1800 for fresh grads and after 5 years or so, you may get RM4k. I do not know of the top management in VC, mayb top managemnet paid is much higher. Furthermore, I believe the paid in VC (outside malaysia such as hk, CHina and sg) is much higher as they need toa nswer the profit and lost. Those gov funded will not need to care of profit and lost.

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Added on March 28, 2011, 5:18 pmsome info of Navis cap, those analyst were mostly getting thier education in UK, US or Aus. Those uni were hard to get in

This post has been edited by chgchksg128: Mar 28 2011, 05:18 PM

Navis is a local private equity company.
They have present in HK, Thailand,India, Aus and Singapore.

I got an interview with MDV a VC arm of the Finance Minstry. Turned it down coz it looks like they are only there to bail out com with "substantial interest"

U didn't make the interview at all?
I am not sure of the MDV (malaysia Debt venture) paid I belive it will not much diffrent from MAVCAP.
why did you said they are bailing out certain comp?

Burger Kings comes to mind, they have been trying to turn it around since 5 years ago. Startups will find it tougher to get funding in though.

Very textbook driven argument.

Vc is none other than a vehicle with a higher risk appetite and greater focus on long term strategy. Hence, their sponsors are prepared for the illiquidity.
The ultimate problem in msia is the market size forthe funding.

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Added on April 18, 2011, 8:14 amImagine a 2 bn buyout deal. And there are 10players. How on earth will the market size of msia prepare for a 20bn credit facility commitment.

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Added on April 18, 2011, 8:17 amIn short a liquidity seizure.

This post has been edited by keelim: Apr 18 2011, 08:17 AM

are u sure they r ppl who fork out 20bn for a project start up?
20mil is consider a large amount for start up.

The gist of my point is insufficient liquidity. The Capital market is shared and not solely yours. If barclays commit 200mn facility to you it can't commit another 200 for another player. That is the perspective.

Most of VCs in Malaysia are private VC, and they usually a small group of people with a lot of money. Since they are small(and use their own money), they would prefer to find startups themselves, analyze them and make decision themselves. Unless you are working with multinational VC, I don't think they can afford higher salary unless they trust you to invest their money on businesses.

If you're a fresh grad and thinking of joining the VC business, your best bet is to go through one of the major banks. CIMB, Maybank all have VC arms which you can apply through their MT programs. It's a starting point, but of course smaller VC firms will have a lot less bureaucracy to deal with.

Actually, what you have described are angel groups.

VCs in general do not fund startups, at least in Malaysia. Too much of a risk. In canada, VCs will only invest if they expect to receive around 70% on returns, that's what I heard.

Even in Malaysia there is a gap between seed and VC. Just last year, the guys from cradle helped form the VIC, an business angel group. Bob Chua is the chairman of the committee.

VIC are not recruiting any analyst as they are non profit aka can not afford to.

VC in CIMB or OSk investment will be concnetrate in ACE i guess. They are really low profile and I think most of them is hibernate

This is one of the more interesting threads on the forum. I'm following closely.

The thread will cool very fast.
VC is still emerging in malaysia and we not not goin to know if it will goin to mature industry like US...or mayb compare with China, we are not where near them

That's right. For venture capitalist of private equity funds, there really isn't much they can do here.
E.g. if they invest in a firm, to realise their value they have to cash out, i.e. find another buyer.
However, there aren't that many buyers around.