MDV Launches Islamic Venture Financing Programme
KUALA LUMPUR, 29 FEBRUARY 2018 – Malaysia Debt Ventures Berhad (“MDV”), a wholly-owned subsidiary of the Minister of Finance Inc. had yesterday launched its Islamic Venture Financing Programme, the first to be launched in the world, at Connexion Conference & Event Centre @ The Vertical. Officiated by the Secretary General of Treasury, YBhg. Tan Sri Dr. Mohd Irwan Serigar bin Abdullah in the presence of Chairman of MDV, Tan Sri Zarinah Anwar; Managing Director and CEO of MDV, Datuk Md Zubir Ansori Yahaya; Acting COO of MDV, Nizam Mohamed Nadzri and other key Government Officials, the launch was also attended by MDV’s partners, customers, Board of Directors and members of the media.
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. As a technology financier, MDV recognises that the development of this ecosystem is a crucial aspect particularly 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.
“ We believe that Venture Financing will be a major boost to the funding ecosystem for tech startups in Malaysia and that it addresses a very real gap in the market. Access to capital is one of the most important aspects for any businesses to grow, therefore a startup must secure the proper amount of capital for it to be able to grow efficiently,” said Chairman of MDV, YBhg Tan Sri Zarinah Anwar.
Zarinah added that this new Venture Financing programme will ensure that MDV is able to continue lending its assistance to high-potential technology companies in Malaysia, providing further incentive towards the realisation of Malaysia’s aspiration in achieving a high-income nation status by year 2020.
“This programme offers a unique set value propositions to all participants within the eco-system. There is less equity dilution for entrepreneurs and existing investors when venture companies opt for venture financing and it also provides the ability for venture companies to extend cash runway to achieve their next development milestone and build enterprise value,” Managing Director and Chief Executive Officer of MDV, YBhg Datuk Md Zubir Ansori Zubir explained.
“Apart from supporting VC capital by permitting leverage of the funds & bridging to subsequent rounds, it also creates a domestic venture-debt financier which is a feature of developed VC markets. It is also a way of a more reflective pricing of risk to serve as a pilot for a sustainable model to attract private funding,” Zubir added.
In supporting the Nation’s technology agenda, the progress and expansion of MDV’s financing mandate must always be strategically aligned and attuned to the Government’s economic development plans. This programme represents a long-term strategy for MDV’s business transformation in the effort to ensure continued sustainability of operations and reduce dependency on Government’s support. This transition from traditional debt financing to Islamic Venture Financing will pave the way for MDV in becoming a regional leader in Venture Finance.
About Malaysia Debt Ventures Berhad
Malaysia Debt Ventures Berhad (MDV) is a Premier Innovative Financier and Development Facilitator for the Information and Communication Technology (ICT), Biotechnology, Green Technology and emerging technology sectors in Malaysia. MDV was established by the Government of Malaysia in 2002 with the objective of providing flexible and innovative credit financing to developing high-impact and technology-driven sectors of the economy, identified and prioritised by the Government as future engines of growth.
As one of the agencies in Malaysia solely focusing on technology-related sectors, MDV envisions itself emerging as the leading technology financier in the country. Since its establishment more than a decade ago, MDV has financed numerous technology projects in various sectors as it strives to fulfil its mandate and developmental role in the technology industry including various eGovernment systems, telecommunications infrastructure, renewable energy projects, photonics, cloud computing, education portals and eCommerce. MDV will continue to play a vital role in supporting the Government’s aspiration to promote high value technology & innovation as a path to a high income nation.
For more information on MDV, visit http://www.mdv.com.my/