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    Unit 9

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    Mohd Hisyamuddin Mohd Aminudin
    This document discusses various sources of financing for technology ventures in Malaysia. It outlines external investors like angels and venture capitalists, government financing schemes through agencies like MAVCAP, MDeC and MOSTI, and SME Corp Malaysia. These agencies offer grants, matching grants, and venture capital funding at different stages of business development from pre-commercialization to growth. The document also distinguishes between debt financing, which must be repaid with interest, and equity financing, which involves selling ownership stakes but relinquishing some control.

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    Unit 9

    Uploaded by

    Mohd Hisyamuddin Mohd Aminudin
    65 views11 pages
    This document discusses various sources of financing for technology ventures in Malaysia. It outlines external investors like angels and venture capitalists, government financing schemes through agencies like MAVCAP, MDeC and MOSTI, and SME Corp Malaysia. These agencies offer grants, matching grants, and venture capital funding at different stages of business development from pre-commercialization to growth. The document also distinguishes between debt financing, which must be repaid with interest, and equity financing, which involves selling ownership stakes but relinquishing some control.

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    This document discusses various sources of financing for technology ventures in Malaysia. It outlines external investors like angels and venture capitalists, government financing schemes through agencies like MAVCAP, MDeC and MOSTI, and SME Corp Malaysia. These agencies offer grants, matching grants, and venture capital funding at different stages of business development from pre-commercialization to growth. The document also distinguishes between debt financing, which must be repaid with interest, and equity financing, which involves selling ownership stakes but relinquishing some control.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    65 views11 pages

    Unit 9

    Uploaded by

    Mohd Hisyamuddin Mohd Aminudin
    This document discusses various sources of financing for technology ventures in Malaysia. It outlines external investors like angels and venture capitalists, government financing schemes through agencies like MAVCAP, MDeC and MOSTI, and SME Corp Malaysia. These agencies offer grants, matching grants, and venture capital funding at different stages of business development from pre-commercialization to growth. The document also distinguishes between debt financing, which must be repaid with interest, and equity financing, which involves selling ownership stakes but relinquishing some control.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    UNIT 9: FINANCING TECHNOLOGY VENTURE

    GROUP MEMBERS:

    1) JAZLEEN ADIBAH 2) KHAIRUL AZWAN 3) MOHAMAD FAHMI 4) MOHAMAD HISYAMUDIN 5) MOHD RAZIS 6) MOHD ZUHAIRI

    External investors

    Own resources

    Government financing schemes

    RESOURCES

    FINANCING NEED

    TO DETERMINE START UP COST One-time start-up costs Initial working capital

    SHORTFALLS OF REVENUES OVER EXPENSES To pay the suppliers and fixed costs of running the business

    FIXED ASSETS REPLACEMENT To reinvest in new fixed assets

    GROWTH Expansion of current operations

    SOURCE AND STAGES FINANCING

    PRE R&D AND R&D


    Pre seed financing

    PRECOMMERCIA LIZATION
    Seed financing

    COMMERCIA LIZATION
    First round financing

    GROWTH AND EXPANSION


    Second round and third round financing

    Self, relatives and friends Angels financing Government Financing Schemes Venture capitals Bank &DFIs

    MAVCAP

    SME Corp GOVERNMENTS FINANCIAL ASSISTANCE

    MDeC

    MOSTI

    MTDC

    COMMITED PURELY TO TECHNOLOGY SECTOR

    INVEST IN A MIX OF LOCAL AND OVERSEAS BUSINESSES

    DEFINITION

    UNIVERSITY CRADLE INVESTMENT PROGRAM (U-ICP)

    MAVCAP
    TYPES OF PROGRAMME
    TYPES OF FUNDING OFFERED
    SEED VENTURE FUND Start-up: RM50k to 500k Other than start-up: RM500k to RM 10million

    CRADLE INVESTMENT PROGRAM (ICP)

    DIRECT VENTURE FUND

    MULTIMEDIA DEVELOPMENT CORPORATION(MDEC)


    THE MSC MALAYSIA R&D GRANT SCHEMES
    (MGS)
    Target to local entrepreneurs whose idea has been developed into a business plan and require further development

    TECHNOPRENEUR PRE-SEED FUND PROGRAM

    -RM120million has been allocated -To support R&D initiatives within the MSC

    - Provide a grant up to 50% of the approved total project cost - RM1.2million whichever is lower

    Size of funding: Up to maximum of RM150k for development up to 12 months

    The amount of grant approve will be determined by the merits of each case

    PROJECT PROPOSALS ELIGIBLE


    Creative media and content development Software development Internet-based businesses Support services Shared services outsourcing Hardware design

    MALAYSIAN TECHNOLOGY DEVELOPMENT CORPORATION (MTDC)


    VENTURE CAPITAL FUNDS
    Non ICT sector (life sciences sector) Strategic technologies

    Invests in early, growth and late-stage TBB Equity stake in any investment limited to around 30% Limited up to 5 years

    High investment return Clear and defined business vision

    INVESTMENT CRITERIA

    MTDC

    TYPES OF FINANCIAL ASSISTANCE

    Credible management team

    SPECIAL-PURPOSE GOVERNMENT GRANTS Technology Acquisition Fund(TAF) Commercialization of Research & Development Fund (CRDF) Technology Acquisition Fund for Women (TAF-W)

    MINISTRY OF SCIENCE, TECHNOLOGY AND INNOVATION (MOSTI)

    Fund offered
    InnoFund
    To develop new or improve existing product with elements of innovation commercialization The quantum and duration of funding Individual RM20k (12 months) Sole-proprietor RM20k (12 months) Micro enterprise RM50k (12 months) Small enterprise RM250k (18 months)

    Enteprise Innovation Fund (EIF)


    Technology clustered: Agriculture Information and communication technology (ICT) Biotechnology Industry Criteria for approval: Innovativeness of project proposal Appropriateness of milestones Appropriateness of methodology Commercialization prospects Financial capability

    Technofund
    Type A Pre commercialization Funding up to a maximum of the total project cost or RM5million whichever is lower Type B IP Acquisition (Laboratory scale) Funding up to a maximum of 100% of the total acquisition cost or RM2million whichever is lower

    Content fund
    To develop content mainly for entertainment, training and learning,culture and heritage and information based Technology required: Animation Games Simulation/virtual reality Portal/web based Allocation Team up to RM90k Micro enterprise up to RM500k SME up to RM6 000 000

    SME CORPORATION MALAYSIA (SME CORP)

    GRANT OFFERED
    MATCHING GRANT FOR BUSINESS START-UPS 50% of approved project cost borne by government, remainder by applicant In manufacturing sector, assistance is given up to 80% of approved cost Maximum allocated per applications is RM 40,000 Sector coverage include process development, product and process design Eligible Expenses including preparation of business plan, related feasibility studies, development of prototype and etc.
    MATCHING GRANT FOR PRODUCT AND PROCESS IMPROVEMENT Provide matching grant for improvement and upgrading of existing product, design and process upgrading 50% of approved project cost borne by government, remainder by applicant Maximum grant allocated per application is RM 500,000 Sector coverage include product/process development, software development, product and process design Eligible Expenses including technology feasibility studies, product testing, product registration, marking and labeling and etc.

    DEBT VS EQUITY

    DEBT FINANCE
    A payback of funds + interest
    A burden of repayment and interest on the entrepreneurs

    EQUITY FINANCE
    The sales of some of the ownership in the venture Forces the entrepreneur to relinquish some degree of control

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