Thursday, 30 March 2023

First VC microfund launched on Fundnel's equity crowdfunding platform in Malaysia

5 min read

For the first time ever, equity crowdunding (ECF) investors will be able to invest into a VC fund through a microfund on Fundnel’s ECF platform. The microfund, Emissary Capital Partnership Feeder 1 PLT, is raising up to MYR 10 million ($2.37 million) to invest in the Emissary Capital Growth Fund 1 (Growth Fund I), a Malaysia-based VC fund managed by Emissary.

Emissary has set aside an allocation in the Growth Fund I’s total fund size of MYR 200 million ($47.5 million) to offer this microfund investment opportunity to ECF investors through Fundnel specifically with the purpose of democratising access to venture capital funds. While ECF platforms in Malaysia, like Fundnel, already allow investors to make direct investments into startups, the ability to invest in a VC fund has traditionally only been available to institutional investors and private banking customers.

Karen Puah, country manager of Fundnel Malaysia said, “Venture capital is one of the most exciting asset classes to invest in right now. Investing in this asset class through a VC fund offers the dual benefits of a diversified portfolio with potentially high returns. We at Fundnel believe that the opportunity to invest in professionally-managed VC funds should be made available to more investors, which is why we started working on this with Emissary, who has been the ideal partner for this”.

Growth Fund I targets the hottest late-stage and pre-IPO startups in Southeast Asia. With over half of Growth Fund I’s funds successfully deployed and revalued, Emissary Capital Microfund investors may enjoy an immediate unrealised gain on the value of their investment. Investors can also get a clear sense of the type of investment opportunities which Growth Fund I will be investing in the near future.

Juhn Teo, general partner at Emissary said, “The Emissary team has a long and stellar track record in the industry, which gives us access to some of the best deals in Malaysia and the region. We are excited and honoured to be the first venture capital company in Malaysia to launch a microfund through an ECF platform, especially one as reputable and prestigious as Fundnel”.

In a recent report titled ‘Southeast Asia Tech Investment - 2021 H1’ by Cento Ventures, despite a record number of deals closed in Southeast Asia, Malaysia received just 4% of the total venture capital funds invested in the region in the first half of 2021. Efforts to boost the local venture capital ecosystem will help address this.

“In line with our commitment to strengthen Malaysia as the preferred regional hub for technology companies, Fundnel plans to continue bringing more microfund investment opportunities to ECF investors the coming months, so that Malaysians can help contribute directly to the growth of the Malaysian startup scene, and revitalise our economy,” Puah said.

Re-disseminated by The Asian Banker

Diary of Activities
Thailand Innovation Tour 2023
12 - 13 June 2023