Venture Capital in Malaysia

Venture Capital (VC) is a form of high-risk investment that is provided by VC firms or organised investors like Angel Networks to high-growth (in terms of revenues and in some cases, profit) companies that range from small companies to large ones.

Venture capitalists fund these companies in exchange for shares or equity, and usually for a period of time ranging from 2-15 years. VCs invest in the hope that their risky investments will return a huge sum, usually measured in multiples of returns (e.g. 30X returns).

There is usually a high rate of failure, from 90% to 70%, depending on the stages of investment. Generally, the earlier the stage, the higher the risks.

These investments can be in any industry, ranging from IT to high-tech to biotech. Venture capitalists usually take about 10% to 30% of equity depending on their intent & risk and return profiles.

Popular Startups funded by venture capital include Amazon, Uber, and Airbnb. It is also known that most of the top corporates in the world by market capitalisation or enterprise value in the year 2020 are backed by Venture Capital, and that they were once very small and unknown Startups.