Malaysia Debt Ventures Berhad (MDV), a wholly owned subsidiary of the Minister of Finance Inc., launched its Islamic Venture Financing Programme, at The Vertical. 

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. 

The development of this ecosystem is crucial 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. 

Speaking at the launch, Tan Seri Zarinah Anwar, MDV chairman, said that Venture Financing addresses a very real gap in the market and that this programme will ensure that MDV is able to continue lending its assistance to high-potential technology companies in Malaysia, providing further incentive towards realising Malaysia’s aspiration in achieving a high-income nation status by 2020.

As a venture financier, MDV adopts a different approach to funding, emphasising on the potential of an applicant and its project by analysing the viability of its technology, the management behind the applicant and the feasibility of its business plan and cash flow projections, as opposed to focusing on the applicant’s past track records and hard collaterals.

Datuk Md Zubir Ansori Yahaya, former MDV managing director/chief executive officer, stated that this programme offers a unique set of value propositions to all participants within the network. 

There is less equity dilution for entrepreneurs and existing investors and it also provides the ability for venture companies to extend cash runway to achieve their next development milestone and build enterprise value. 

In supporting the Nation’s technology agenda, the expansion of MDV’s financing mandate must be strategically aligned 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.

The launch was officiated by Tan Seri Dr. Mohd Irwan Serigar bin Abdullah, the secretary general of Treasury.

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