(Digital News Asia, Sep 2021) The Malaysian Global Innovation & Creativity Centre (MaGIC) and Penjana Kapital Sdn Bhd are collaborating to unlock potential investment opportunities for innovative startups, which in turn will position them to scale and grow regionally and beyond.

In bridging the funding gap faced by startups, MaGIC will funnel its alumni, in particular seed stage startups, to venture capitals (VCs) under the Dana Penjana Nasional (DPN) programme. For seed stage, the VCs include Tenggara Capital Partners - IMO Ventures, and The Hive Southeast Asia- Tuas Capital Partners.

The DPN, which is a matching fund-of-funds programme, is administered by Penjana Kapital. This programme, which is part of the Short-Term Economic Recovery Plan (PENJANA), is aimed at bridging the funding gap in the country by incentivising private capital to facilitate the growth of startups and create an enabling environment for these startups to scale and expand their reach internationally.

The Government will match US$144.7 million (RM600 million), on a 1:1 basis, of the funds raised by the VC fund managers from foreign and private domestic investors, with a target allocation of RM1.2 billion. At its first close at end-May 2021, Penjana Kapital has raised US$205 million (RM850 million), with more than half from foreign investors in Hong Kong, South Korea and Singapore. The successful first close means that the programme is on track to meet the target of RM1.2 billion.