MDEC launched funding program for malaysian micro companies
As part of this, it has partnered with 11 equity crowdfunding (ECF) and P2P platforms to provide MSMEs with financial help.
The partners include ATA Plus, CrowdPlus.asia, Eurecca, Leet Capital, pitchIN, B2B Finpal, CapBay, Funding Societies, microLEAP, MoneySave and QuicKash.
“With the continued disruption to businesses caused by the COVID-19 pandemic in 2020, it is crucial for startups in Malaysia to be able to explore multiple avenues for funding. While initiatives like the Dana Penjana Nasional have done much to address the funding gaps for startups in Malaysia, it is in the best interest of MDEC for them to have more options to ensure sustainable cash flow,” said Surina Shukri, CEO of MDEC.
To be eligible for the programme, companies should be locally incorporated and have operations running for at least one year with a minimum annual turnover of RM300000 (~US$74,156).
This is MDEC’s second year running the same programme led by its Global Growth Acceleration Division (GGA).
Last year, 16 companies had participated and managed to raise a total of RM19.89 million (~US$5 million).
Among the startups that successfully raised funding through the programme include PolicyStreet (US$1.8 million), which is the largest funds raised to date from an ECF platform in Malaysia.
“MDEC has been promoting ECF and P2P funding platforms actively to startups and I believe that the concerted effort put in by MDEC has led to an increase in public awareness towards the benefits of ECF and P2P investment,” Wilson Beh, co-founder of PolicyStreet said.
Entrepreneurs who wish to participate in the programme can submit their applications now. The deadline is March 31, 2021.
MDEC is an agency under the Ministry of Communications and Multimedia Malaysia and is tasked with spearheading the development of the country’s digital economy.