MSC Malaysia InnoTech@Startups

KUALA LUMPUR: Multimedia Development Corp Sdn Bhd (MDeC) is on track to achieve its target of an additional RM100 million deal flow through its MSC Malaysia InnoTech@Startups platform this year, said its innovation capital division director Dr Karl Ng (pix).
"We've seen a lot of deal flow that have gone through this platform. Since 2008 until last year, we actually facilitated RM200 million worth of deal flows from this platform. This year alone our target is to hit an additional RM100 million, to make it to RM300 million," he told reporters at a media briefing yesterday.
According to him, MSC Malaysia InnoTech@Startups is an investment platform created by MDeC in 2008, to bring investors and startup companies together for them to match their requirements and secure investments.
It also aims to promote closer collaboration between Malaysian and regional startups because many local startups are looking to expand into the global and regional markets.
"There are a lot of the issues when it comes to moving to these countries. Even though we are in Southeast Asia, there are a lot of differences in terms of language, the way of doing businesses, processes, governance and regulations. So it is important for them to know someone local to help them, to be their partner in implementation or at least, to provide them the right direction, who to talk to when they enter such markets," said Ng.
"At the same time, what we want is for investors to work together with other investors, to syndicate and to invest jointly with startups. This year, MSC Malaysia InnoTech@Startups is focused on regional and local investors and startups.
"We have a total of 40 investors this year which is one of the largest we have ever assembled so far, and we also have more than 28 startups where majority of them are from Malaysia. But we also have startups coming from other countries like Brunei, Singapore, Indonesia and Thailand among others," he added.
Ng said syndication between local and foreign investors are increasing, which will add value as these investors will be able to provide coaching and mentoring to help startups grow at the early stages.
"Investors are also syndicating with others to tap on other investors' expertise in certain vertical sectors as well as country-specific areas. We are beginning to see a lot of syndication happening, not just in Malaysia but across the whole region, to tap on each other's expertise.
Malaysia Venture Capital Management Bhd CEO Jamaludin Bujang said such platforms are good for investors as it would provide them with better access to deal flows and enable them to network with fellow investors.
"The way venture capitals work is by having a large network so that we can share resources, investments and ideas. This is a good platform for venture capitals like us," he said.
According to him, startup companies are growing both in terms of numbers and quality, compared with five to six years ago.
"There are a lot of companies related to the internet, there are a lot of foreign technologies that we are also bringing here. We've seen this growing trend since at least three to four years ago," he said, adding that interest from foreign investors are also growing, including from countries like Singapore and Hong Kong.
Malaysian Venture Capital & Private Equity Association chairman Amin Shafie said the incubators and accelerators help to filter the startup companies and mentor these companies at an earlier stage before they meet the venture capitals.
"At that point in time, you'll see that the presentations are a lot more polished, the maturity in terms of thought that has gone through the business plan that they plan to propose, is there. The change has been quite drastic for the past couple of years," he said.