funding facilitations by mdec

7/30/2019 Funding Facilitations by MDEC

1/17

Funding Facilitation

by MDeC

2nd October 2012

MIRC Funding Forum 2012


2/17

About MSC Malaysia

MSC Malaysia is Malaysias

national ICT initiative developed to:

1

3

2

Revolutionise the ICT

industry in Malaysia

Increase the ICT industrys

contribution to the Malaysian

economy via exports

Position Malaysia as a

vibrant hub for ICT

investments

MSC Malaysia


3/17

1

2

A one-stop agency under Ministry

Of Science, Technology &

Innovation, (MOSTI), focused onfacilitating the success of MSC

Malaysia and the companies

operating in it

MDeC also advises the MalaysianGovernment on legislation and policies

with respect to ICT matters

Multimedia Development Corporation Sdn Bhd


4/17

Information Technology (INFOTECH)

Study, design , development, implementation, technical services or

support, marketing and management of computing based

information system

Creative Multimedia Cluster (CMC)

Multimedia content designing of computer based media including

text, graphic, sound, animation, photo images and video

Global Sourcing Cluster (GSC)

Captive & Outsourcing in 5 main areas - Banking, Financial Services &

Insurance (BFSI), ICT, Pharmaceutical & Health, Logistics &

Transportation and Energy, Chemical & Resources

MSC Malaysia Clusters


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Ideas Preseed Seed Start-up

EarlyGrowth/

Growth

Expansion/ IPO

Funding Value Chain

Current

Funding

Scenarios

(Source:

BNM Blue

Print 20112020)

3Fs/ Grants

Angels

VC, Banks, PEs, Institutional Investors

Listing

1. 58 Venture Capital Corporations (VCCs) but less than 10 VCCs are active

2. Angel investments are based on Ad-hoc inner circle network, Not structured and No

Syndication

3. Banks Schemes slow in recognising IP assets as part of the financing regime -normally require up to 30% of the loan in hard collateral

4. Private Equities (PEs) require strong/high growth & high ROI/IRR

5. Difficulty in getting financing, companies rely on grants and self-funding

Funding Ecosystem Current Situational Analysis


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Strong dependency on grants

Difficulty to secure bank loans

Lack of financial planning

Unable to generate/procure funds

Soft deal flow (not innovative)

Unable to assess or correctly value

Exit strategy Scalability of deals & limited market

access

Lack of incentives by the Government

Funding Issues From Companies & Funders


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1. The issue of getting funding and financial assistance is and has been an issue faced by

Companies.

2. However the issue of funding is bigger and more pertinent than merely getting funds,

which has resulted in MDeC establishing several initiatives over the years, namely

i. Grant programmes such as; Pre-Seed, ICON, MGS, BCI2ii. MSC Malaysia InnoTech, which is the private capital raising platform.

In 2012, MDeC through the Innovation Capital is looking into the funding ecosystem and to

identify the gaps and opportunities as well as drawing up a strategy in managing the gapsand improving on the current funding ecosystem.

Funding Facilitation by MDeC


8/17

Equity Financing Project Financing Debt Financing

In Progress

Funding Facilitation & Platforms


9/17

Business Angel Venture Capital Private Equity

Stage of Company Start-up Growth Expansion

Business is born and

now exists legally.

Products or services

are in production and

you have your firstcustomers

Revenues and

customers are

increasing with many

new opportunities.

Profits are strong, butcompetition is

surfacing.

This stage is often the

choice of the small

business owner to

gain a larger market

share and find newrevenue and profit

channels.

Platform BA Platform MSC Malaysia

InnoTech

PE Platform

Collaboration

Partner

1. PIKOM Angel

Chapter (PAC)

2. Virtuous Investment

Cycle (ViC)

3. BANSEA

MAVCAP, local and

regional VCs

CMS Opus

Pembangunan Ekuiti

Quantum RM500k - 2mil RM2mil 5mil > RM5mil

Equity Financing


10/17

MSC Malaysia InnoTech

has been recognized as a Malaysian Venture Capital pitching

platform (for ICT).

secured deals generated from Venture Capitals and Business

Angels worth more than RM 60 mil and has successfully fundedmore than 50 companies from 2008 until 2011.

MSC Malaysia was awarded Contributor of the Venture

Capital Industry by Malaysian Venture Capital Association

(MVCA) for MSC Malaysia InnoTech.

MSC Malaysia InnoTech


11/17

QualifyPitch

Platform

Deal

Opportunities

MonitorDevelop

MSC Malaysia InnoTech The Flow


12/17

Knowledge Sharing Seminar on From the View of

Investor: How To Size Up Business Opportunities in

China?, 31st October 2012

MSC Malaysia InnoTech Creative Multimedia, in

November 2012

PIKOM-MSC Malaysia InnoTech, in November 2012

MSC Malaysia InnoTech - Upcoming Programme


13/17

Existing platform:

Collaboration with Malaysian Debt Ventures Berhad

(MDV)

MDV-MSC Malaysia ICT Adoption Financing Programme Loan Size: RM0.25mil to RM2mil

Financing Rate (MDV lending rate): 0.25%

Project Financing


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Debt financing takes the form of loans that must be repaid over time,

usually with interest.

Progress:

Workshop for Financial Institutions (FIs) Workshop was organized by

Bank Negara Malaysia in July 2012, in collaboration with MDeC, SME

Corp and 3 major associations for banks in Malaysia.

To educate the funders (i.e. bankers) to assess business based on cash

projections rather than collateral-based

Currently working with Credit Guarantee Corporation (CGC), Development

Financial Institutions (DFIs) and commercial banks

Debt FinancingIn

Progress


15/17

StrengthenIncubation

Ecosystem

IncubationVirtualisation

Model

HolisticIncubation

Development

Incubation & Entrepreneurship

More platforms through

partnerships for capability

enhancement &

networking, i.e. TOD with

MAD incubator, SVC2M

with StartupMalaysia.org

Collaboration model for

incubators to provide

more virtual services to

incubatees /

entrepreneurs for bigger

reach & non-physical

bound

More programmes for

entrepreneur

accelerator initiatives


16/17

More than 100 organisations

participated in development lab

Increase

Buyers trust

& confidence

Reduce cycle

time forpurchasingdecision

Encourage

developmentof quality

solutions

Spur demand

for local

products

Process

Assessment

Product

Evaluation

13 main criterias

76 sub-criterias

403 questions

Our assurance:

To Create a Quality Image towards

Malaysian made ICT products

MSC Malaysia Certified Solutions


17/17

17

Presented byIr. Dr. Karl Ng

Director, Innovation Capital

Multimedia Development Corporation (MDeC)

funding facilitations by mdec

Documents