Dreams are free-of-charge, but growing a business is an entirely different matter. As an entrepreneur, you may often have visions of a product or service that could push boundaries and transform industries. Unfortunately, to bring these ideas to life properly, you’ll need a significant amount of capital. This capital will be allocated to areas such as office rental, renovations, staff salaries, software licenses, and much more — expenses that your regular salary might not sufficiently cover.
This is where venture capitalists come into the picture. Short for VC, venture capitalists are private equity investors who provide capital to companies with high growth potential in exchange for a stake in the company. Some of today’s biggest companies that we take for granted, such as Grab, iMoney Group, Carsome, and Carousell, were the results of VC funding. However, for every Grab and Carsome out there, there are at least a hundred other failed startups that never make it, making attracting the attention of VCs all the more difficult.
However, if you firmly believe that you have a valuable offering for the market, here are some ways you can pursue VC funding locally and, with their assistance, potentially expand it internationally in the future.
Technology has made significant advancements, making the search for VCs much more convenient. By going online, you can explore websites like Cradle and Beamstart. These platforms enable you to create an account and present your business idea in a post that can be seen by potentially hundreds, if not thousands, of users. Some of them might decide to take a chance on your venture. An additional advantage of these online platforms is the potential for crowdfunding, where a large number of individuals contribute smaller amounts that can accumulate into a substantial sum, often surpassing the investment from just one or two VCs or angel investors.
If you’re someone who values a more personal approach, attending networking events such as startup gatherings, conferences, and networking meetups could be your preference. These occasions frequently draw venture capitalists seeking to engage with promising investment prospects. Amid the numerous event platforms available, websites like Eventbrite and Meetup can serve as excellent resources for discovering pitching events and competitions where you can showcase your business idea or startup.
Did you know that when it comes to VC funding, the Malaysian government has invested billions of ringgit to catalyze startups? Founded in 2001, Malaysia Venture Capital Management Berhad (MAVCAP) stands as the country’s largest VC, dedicated to propelling the local tech ecosystem forward and offering financial support to upcoming ventures. After preparing your business proposal, you can submit it directly through the MAVCAP website. Subsequently, MAVCAP will review the submissions and inform you of your application status through email.
In the age of social media, it appears that there’s a community for every conceivable niche, and startups are certainly no exception. By becoming a part of online forums, social media groups, and communities centered around startups, you can connect with like-minded individuals who might possess personal connections with venture capitalists. Additionally, you can acquire valuable insights into the local investment ecosystem and learn about what VCs seek within the region. Moreover, some venture capitalists might also be present within these forums and groups. Through active participation in these online discussions, you could potentially capture their attention.
While there are undoubtedly numerous ways to locate VCs in Malaysia, that comprises only one aspect of the equation. As alluded to earlier, many startups have experienced rapid ascent only to fizzle out shortly thereafter, a fact well recognized by many VCs. While we are confident that some of you reading this article could be trailblazers for the next groundbreaking concept, it remains essential to diligently prepare and ensure that your business proposal is meticulously structured before presenting your idea.
A valuable approach to facilitate this preparation is by staying engaged with us at PEGH. Here, we delve into Malaysia’s investment market trends and explore how we can push boundaries by assisting businesses in reshaping their strategies to establish a more sustainable and prosperous corporate landscape in Malaysia.