What is Dana Penjana Nasional?
A RM600 million investment fund by the Government of Malaysia for the venture capital firms to invest in start-ups. This amount will be matched on a 1:1 basis by foreign investment institutions to attract investors. With the balance of RM600 million to be matched by these investors, an allocation of RM1.2 billion will be made available to further enhance the digitalisation and automation of Malaysian businesses and at the same time revitalise the Malaysian economy.
Private sector venture capital funds, which will be responsible to deploy the funds to the start-up companies. Local venture capital companies and start-ups will also benefit from a knowledge transfer program to be carried out by the foreign venture capital companies to develop the local venture capital and start-up industry. Penjana Kapital will also aim to create a vibrant ecosystem in Malaysia, with the support of all stakeholders.
Fund of Funds (FOF) mechanism is used where an investment fund will be established by the venture capital firm and the funds brought in by them will be matched on a 1:1 basis by Penjana Kapital. It will cover the venture capital investment life cycle.
VENTURE CAPITAL LIFE CYCLE
How Penjana Kapital will be allocating capital funds across the various private capital categories?
This fund is specifically dedicated as a start-up launchpad by co-creating companies or providing seed capital to early-stage start-ups.
Invest in post-revenue companies that have passed the ideation stage and ready to scale up.
The expansion stage for a company, after Series A/B.
Specifically dedicated fund to provide short/mid-term financing for early, mid, and late stage technology companies, which are usually not covered by the banks.