By BERNAMA / Pic By MDV
Malaysia Debt Ventures Bhd (MDV), a wholly owned subsidiary of the Minister of Finance Inc, launched its Islamic Venture Financing Programme in Kuala Lumpur recently.
The launch was officiated by Treasury Secretary General Tan Sri Dr Mohd Irwan Serigar Abdullah in the presence of MDV chairman Tan Sri Zarinah Anwar and Datuk Md Zubir Ansori Yahaya who was serving his last day of tenure as MD/CEO of MDV.
Expanding into venture financing will better enable MDV to finance early-stage companies and fill the gap in the ecosystem for venture-financing funding for growth.
The development of this ecosystem is crucial for technology-based entrepreneurs as traditional financial institutions are not prepared to support the areas in which they operate in, commonly due to lack of business assets and track record.
Speaking at the launch, Zarinah said venture financing addresses a very real gap in the market and this programme will ensure that MDV is able to continue lending its assistance to high-potential technology companies in Malaysia, providing further incentive towards realising Malaysia’s aspiration in achieving a high-income nation status by 2020.
As a venture financier, MDV adopts a different approach to funding, emphasising on the potential of an applicant and its project by analysing the viability of its technology, the management behind the applicant and the feasibility of its business plan and cashflow projections, as opposed to focusing on the applicant’s past track records and hard collaterals.
Md Zubir said the programme offers a unique set of value propositions to all participants within the network.
There is less equity dilution for entrepreneurs and existing investors and it also provides the ability for venture companies to extend cash runway, to achieve their next development milestone and build enterprise value.
In supporting the nation’s technology agenda, the expansion of MDV’s financing mandate must be strategically aligned to the government’s economic development plans.
The programme represents a long-term strategy for MDV’s business transformation in the effort to ensure continued sustainability of operations and reduce dependency on the government’s support.