CYBERJAYA, 10 JUNE 2021 – Cyberview Sdn Bhd (Cyberview), the Tech Hub Developer of Cyberjaya hosted its second Tech Talk Webinar series for 2021 on investments and financing strategies through a panel discussion themed, ‘Financing the Future: Investing in Creating and Building Digital Business Models’.
The pandemic has paved the way for innovation, which is no longer a luxury but a necessity. A 2020 study by Forrester found that COVID-19 spurred the plans of 34 percent of Malaysian firms to start on their digital transformation journey this year and innovation tops the list of success factors. While innovation brings the exciting prospect of transformation for businesses, there are several factors that can derail the journey including lack of support, funding, and skills.
The panel session delved into the challenges and opportunities around funding for start-ups as they embark on their journey towards commercialisation during the pandemic. The panellists were Zuhry Rashid, Vice President of Business and Technology Advisory, Malaysia Debt Ventures Bhd (MDV); Khairul Anwar Mohamad Zaki, Chief Executive Officer of Pandai Education Sdn Bhd; and Shafinaz Salim, Head of Technology Hub Division of Cyberview Sdn Bhd.
Shafinaz highlighted that access to funding is imperative for start-ups to commercialise their innovation, “Venture financing as offered by Malaysia Debt Ventures can support start-ups to pivot quickly and stay differentiated in today’s competitive, fast-moving market. On top of funding, start-ups can fast track their commercialisation efforts by leveraging Cyberjaya’s collaborative ecosystem and living lab opportunities. It is a powerful vehicle that can open up opportunities for innovators to convert ideas to viable products.”
Zuhry elaborated on MDV’s role in filling the gaps of the country’s current financing ecosystem, “Startups are reliant on investors like venture capital investments as well as the support of government and relevant agencies for grants, seed capital or soft loans. This structure can be complex for start-ups to comprehend, who usually have intangible business models, are digital centric and are without any assets. MDV is strategically positioned where our venture financing for start-ups is not only compatible to standards of the matured market but provides a unique, flexible, and balanced structure for companies without dilution of their equity, lending to higher valuation.
“Compared to global markets, many start-ups in Malaysia were already actively seeking or raising funds prior to the pandemic. When the pandemic hit, the funding efforts slowed as well. During this time, many start-ups were met with challenges including depleting marketing funds, slowing customer acquisition, changes in the working capital requirements, among others. However fortunately, the situation is now seeing a positive traction with start-ups securing new rounds of funding. Investors are also more active and aggressive now and have started looking at alternative asset classes that are robust, innovative and have digital access, instead of usual conservative types,” added Zuhry.
As an entrepreneur himself, Khairul also shed some light on how companies should navigate through the multiple funding options available, “For early-stage companies that are seeking for grants or funding, it is important to showcase the people behind the company, highlight their credentials, expertise, and passion as well as share key learnings and insights from industry to drive investor confidence. Start-ups also need to understand that funds are often not dispensed upfront, there are milestones and deliverables to meet before they can be secured. Fund disbursement also takes time; therefore, it is important to be conservative with your projection and set aside revenue if required. In some cases, funds can only be claimed after the execution, meaning start-ups will need to fork out their own cash first.”
For the full recording of this webinar, visit Cyberview’s YouTube channel at https://www.youtube.com/watch?v=voVzbtdmdYg&t=1s.
