Fundnel launches VC microfund investment platform

It will enable the ECF investors in Malaysia to gain access to investing in a VC fund 

By NURUL SUHAIDI / Pic source

FUNDNEL, a Singapore-based modern capital raising solutions provider, has launched its first venture capital (VC) microfund investment opportunity for sophisticated investors on its equity crowdfunding (ECF) platform. 

The platform will enable the ECF investors in Malaysia to gain access to investing in a VC fund, which is traditionally an opportunity only open to institutional investors and private bank customers. 

The participating investor funds will be managed by Emissary Capital Partners Sdn Bhd, a reputable VC in Malaysia and the region, a press release yesterday noted. 

Emissary Capital Partnership Feeder 1 PLT (Emissary Capital Microfund) fund is a Malaysia-based microfund that is generating up to RM10 million to participate in Emissary Capital Growth Fund 1 (Growth Fund I), a Malaysia-based VC fund managed by Emissary. 

To democratise access to VC funds, Emissary has set aside a portion of the Growth Fund I’s overall fund size of RM200 million to provide ECF investors with this microfund investment option through Fundnel. 

Fundnel, an ECF platform which has expanded into Malaysia, has already enabled investors to make direct investments into start-ups. 

Fundnel Malaysia country manager Karen Puah stated one of the most intriguing asset groups to invest in right now is VC as this asset class provides a diversified portfolio with the possibility of substantial returns. 

“We at Fundnel believe the opportunity to invest in professionally-managed VC funds should be made available to more investors, which is why we started working on this with Emissary, who has been the ideal partner for this,” she said. 

Meanwhile, the Growth Fund I targets the hottest late-stage and pre-IPO start-ups in South-East Asia. 

“With over half of Growth Fund I’s funds successfully deployed and revalued, Emissary Capital Microfund investors may enjoy an immediate unrealised gain on the value of their investment.” 

She added potential investors can also get a clear sense of the type of investment opportunities which Growth Fund I will be investing in the future. 

General Partner at Emissary, Juhn Teo said the team has a long and stellar track record in the industry, which gives it access to some of the best deals in Malaysia and the region. 

“We are excited and honoured to be the first VC company in Malaysia to launch a microfund through an ECF platform, especially one as reputable and prestigious as Fundnel,” Teo said. 

A report by Cento Ventures, titled “South-East Asia Tech Investment-2021 highlighted that despite a record number of deals closed in South-East Asia, Malaysia received just 4% of the total VC funds invested in the region in the first half of 2021. 

Fundnel plans to bring more microfund investment opportunities to ECF investors in the coming months to support the growth of the Malaysian start-up scene and help revitalise the economy, Puah added. 

“This is in line with our com- mitment to strengthen Malaysia as the preferred regional hub for technology companies,” Puah said. 

In compliance with the Securities Commission’s Guidelines on Recognised Markets, this ECF opportunity to invest in the Emissary Capital Microfund is only open to sophisticated investors and angel investors.