The landscape for angel investors and venture capitalists in Malaysia in 2024 is vibrant and evolving. Various venture capital firms are providing funding options for startups at different stages and across multiple sectors. Initiatives like the Malaysian Business Angel Network and the Angel Tax Incentive are actively supporting angel investors.
Angel investors operate both individually and in syndicates to fund projects of interest, creating valuable connections with like-minded investors. Venture capital funds seek investments in promising companies regardless of their stage. Malaysia’s strong infrastructure and government support has created an ideal environment for business development, leading to a flourishing VC and angel investor landscape.
Here is the list of the major Angel Investors and Venture Capitalist Funds that are transforming the investment landscape in Malaysia.
Table of Contents
Malaysia Investment Network
- Stage: Seed, Series A
- Focus Industry: Sector Agnostic
The Malaysia Investment Network is a platform that allows entrepreneurs to showcase their projects and connect with angel investors. It was founded by James Badgett and Mike Lebus to address a significant challenge in the startup ecosystem.
The platform was created to facilitate quick connections between startups and a global network of angel investors. As many promising ideas struggle to obtain seed funding and entrepreneurs often face difficulties in finding suitable investors for guidance. Over time, the network has expanded to include 40 networks across 90 countries with over 1.9 million registered members, including nearly 352,000 investors and 1.6 million entrepreneurs. This growth has established it as the largest angel investment community worldwide.
To date, the platform has raised approximately US$300 million and supported the early-stage growth of innovative companies. In 2021, the network launched BrickTribe to connect property developers with investors and in 2023, an investor app was introduced to provide access to startup opportunities and facilitate communication with entrepreneurs.
The Malaysia Investment Network’s commitment to connecting entrepreneurs with investors remains a core mission while continually exploring new ways to support the startup ecosystem.
Malaysian Business Angel Network
- Stage: Seed, Series A, Series B
- Focus Industry: Sector Agnostic
The Malaysian Business Angel Network (MBAN) serves as the official trade association and governing body for angel investors and clubs in Malaysia. Its goal is to promote angel investing inclusively for the benefit of members and startups.
MBAN is responsible for accrediting individual angel investors and clubs while creating awareness and training opportunities. It also monitors angel investment statistics in the country. As a trade organization, MBAN fosters regional and international connections among angel investors.
The vision of MBAN is to represent the Malaysian angel investor community and provide a platform for engagement and knowledge sharing. It seeks to develop the angel investing ecosystem in Malaysia. Companies, which are seeking angel funding can register as Certified Investee Companies under the Angel Tax Incentive Programme, which makes them more appealing to investors by offering tax breaks. Additionally, MBAN features the “Enter the Tiger’s Lair” program, where entrepreneurs compete for investments from angel investors during exclusive events.
NEXEA
- Stage: Seed, Series A
- Focus Industry: Technology
NEXEA is an innovation platform that provides various investment and support programs for startups. It includes an angel investment network venture capital, a startup accelerator, a startup-corporate matching program and an entrepreneurial program.
The NEXEA Angel Investors network consists of experienced business owners and C-suite executives interested in funding tech startups while offering mentorship and support for growth. These investors focus on more than just financial returns as they often seek to give back after achieving success in their careers.
NEXEA Angel Investors look for opportunities in technology startups that demonstrate revenue and potential for future growth. Their focus is on investments within Malaysia and Southeast Asia.
Cradle Fund
- Founded in: 2003
- Stage: Pre Seed, Seed
- Focus Industry: Technology
Cradle Fund Sdn. Bhd. is a key agency for early-stage startups in Malaysia. It was established under the Ministry of Finance in 2003 with the aim of funding promising tech startups through the Cradle Investment Programme (CIP). Currently, it is administered by the Ministry of Science, Technology and Innovation. Cradle empowers startups through various programs and initiatives.
The mission of Cradle is to create a supportive ecosystem for technology entrepreneurs. It has successfully funded over 1,000 technology-based companies and boasts one of the highest commercialization rates among funding agencies in the country. The support offered by Cradle funds includes not only financial aid but also commercialization assistance and additional services designed to boost growth.
Following the announcement of the Malaysian Startup Ecosystem Roadmap in 2021, Cradle has been designated as the main agency for the startup ecosystem. It leads the MYStartup initiative, which aims to increase the number of innovative startups. Cradle provides two main investment programs: CIP Spark, which supports pre-seed businesses in developing their ideas and CIP Sprint, which offers seed investments to help startups commercialize and grow.
1337 Ventures
- Founded in: 2013
- Stage: Seed, Series A
- Focus Industry: Agritech, AR, AI, Edutech, E-commerce, Foodtech, Fintech, Green Tech, HealthTech, HRTech, InsurTech, Proptech, Logistics, Retail, Retail Tech, Service, Social Enterprise
1337 Ventures is a venture capital firm that invests in early-stage startups and supports them through every growth stage. In addition to funding, the firm operates an accelerator program to help startups achieve product-market fit and scale their operations. Since its founding, 1337 Ventures has produced over 700 successful graduates and has expanded into innovative fields in the market.
The firm focuses on pre-seed and seed-stage startups in Malaysia and Southeast Asia. It primarily invests in technology solutions while also welcoming social enterprises and other creative ideas. 1337 Ventures aims to scale companies from concept to multi-million dollar valuations in less than 10 months.
Through its education arm, Leet Academy, the firm conducts workshops on corporate digital transformation including Design Thinking and Agile Ways of Work. Leet Capital serves as an equity crowdfunding platform connecting startups with angel and retail investors.
Fatfish Group
- Founded in: 2011
- Stage: Seed, Series A
- Focus Industry: FinTech Solutions, Digital Media
Fatfish Group Ltd is a publicly traded tech venture builder that began as a Singapore government-partnered incubator. The firm has rapidly expanded to Australia, Southeast Asia and Europe since its listing on the Australian Securities Exchange in 2014. Fatfish Group aims to build scalable tech businesses through its unique “Seed-to-Exit” approach.
The company holds a majority stake in the Swedish-listed Abelco Investment Group AB, which is a prominent venture builder in Sweden. Fatfish Group is dedicated to strategically developing tech businesses to support their growth and success. It has a broad network of resources, domain knowledge and expertise across various sectors including Buy-Now-Pay-Later, online insurance, video games, e-commerce and enterprise cloud solutions.
In Malaysia, Fatfish Ventures Sdn. Bhd. serves as a co-investment partner for Cradle, the early-stage technology funding agency under the Ministry of Finance.
TBV Capital
- Founded in: 2016
- Stage: Seed, Series A
- Focus Industry: Internet, Mobile
TBV Capital is a venture capital firm focused on supporting founders from the very beginning of their journeys. The firm collaborates with expert teams to help establish a solid foundation for long-lasting businesses. Each team member brings decades of industry experience in key areas such as marketing, production and research and development to support startup growth.
TBV Capital partners early with new ventures and is comfortable with the inherent imperfections of startups. The firm assists both emerging companies finding their way and established businesses seeking significant growth. The goal is to help organizations become enduring enterprises.
MLS Capital
- Founded in: 2006
- Stage: Seed, Series A
- Focus Industry: Life Sciences, Agriculture, Industrial, Healthcare, Biotechnology
The Malaysian Life Sciences Capital Fund is a venture fund that focuses on early-stage investments in life sciences agriculture industrial and healthcare biotechnology. It has established two funds that invest in a diverse range of biogreentech enterprises at various development stages.
The Malaysian Life Sciences Capital Fund I specializes in early-stage investments and was founded in late 2006 with USD 162 million in committed capital. This fund is fully allocated.
The Malaysian Life Sciences Capital Fund II is co-managed by Spruce Capital Partners and Xeraya Capital. This fund invests in a diversified portfolio of biogreentech companies across all development stages. Areas of interest include plant and animal agriculture food feed and nutrition bio-renewable chemicals and materials as well as opportunities in big data analytics robotics and synthetic biology.
Vynn Capital
- Founded in: 2018
- Stage: Seed, Series A
- Focus Industry: Technology, Supply Chain, Mobility
Vynn Capital is an early-stage venture capital firm focused on tech startups in Southeast Asia. The firm specializes in the Supply Chain and Mobility sectors while also considering opportunities in Logistics Travel and FMCG.
Vynn Capital aims to create an ecosystem within its portfolio by investing in companies with the right mindset for growth. The firm positions itself as a partner to entrepreneurs providing support in navigating business challenges and building impactful enterprises.
Collaboration with reputable industry players and long-term stakeholders is essential for Vynn Capital. The firm emphasizes adding value to partners and fostering relationships based on aligned values.
Xeraya Capital
- Founded in: 2012
- Stage: Seed, Series A, Series B, Series C
- Focus Industry: MedTech, Pharmaceutical Biotech, Biorenewables
Xeraya is a venture capital and private equity firm that focuses on investing in the future of life sciences. The firm supports the development of innovative products and breakthroughs aimed at improving global healthcare. Established by Khazanah Nasional Berhad, Malaysia’s national wealth fund, Xeraya operates as an independent entity to finance life science companies.
Xeraya’s investments are designed to address unmet needs in healthcare and sustainability. The firm emphasizes building long-term relationships with partners to help them achieve their business goals and ensure fruitful returns.
The firm aims to respond quickly to opportunities while maintaining a long-term vision and ensuring that partner companies positively impact lives in Malaysia and beyond. Currently, Xeraya comprises a team of investment and business experts with extensive experience in life sciences, managing a diverse portfolio and actively seeking new opportunities.
Conclusion
The future of venture capital and angel investing in Malaysia in 2024 appears promising despite some challenges. The Malaysia Venture Capital Roadmap aims to increase the number of VCs and professionals in the industry while improving the regulatory framework. Angel investors remain vital for early-stage funding providing entrepreneurs with essential support in Malaysia. There is growing interest among investors to diversify their holdings in Asia, particularly in Malaysian companies. Additionally, funds are exploring opportunities in cleantech and green technology in the region.
