PETALING JAYA: Penjana Kapital Sdn Bhd has successfully raised RM676mil through eight Malaysian-based venture capital (VC) fund managers that had been selected as part of the Dana Penjana Nasional programme.
Of the amount, RM372mil, or 55%, of the funds came from various foreign investors, specifically from Hong Kong and South Korea, said Penjana Kapital in the statement.
Penjana Kapital is a company set up to operationalise the DPN programme, which is a matching fund-of-funds initiative under the Short-Term Economic Recovery Plan (Penjana).
Under the initiative, the government would match RM600mil, on a one for one basis, of the funds raised by the VC fund managers from foreign and private domestic investors, with a target allocation of RM1.2bil.
DPN aims to bridge the funding gap by incentivising private capital to facilitate the growth of start-ups and create an enabling environment for these start-ups to scale and internationalise.
“The RM676mil raised has exceeded Penjana Kapital’s initial fundraising goal of RM228mil by RM448mil, or almost 200% of the original target amount.
Penjana Kapital said out of the RM676mil raised, the eight VCs will initially invest a combined total of RM110.15mil in eight start-ups, which are present in at least two Asean countries.
Five of them are Malaysian-based start-ups while the three ex-Malaysian investments have committed to setting-up operations in the country and have already secured partnerships with Malaysian corporates.
Finance Minister Tengku Datuk Seri Zafrul Aziz said these funds are crucial to spur our start-up ecosystem and encourage innovation, particularly in the face of Covid-19 challenges.
Apart from committing to a target internal rate of return of 15%-30%, the eight VC fund managers have also committed to deliver tangible economic benefits to the economy and create almost 1,400 high-quality jobs from those initial investments.