Funding Initiatives to Help Entrepreneurs Tide Over the Economic Challenges Posed by the Pandemic
A. ALTERNATIVE FUNDING
The COVID-19 pandemic has severely affected the sustainability of startups and tech companies in Malaysia. Companies especially with less than 3 years of operations are faced with various challenges tapping into funding facilities as banks will prioritise existing customers with track records. As such, an alternative avenue for funding and financing is necessary for them.
In response to this, MDEC has partnered with 14 Equity Crowdfunding (ECF) and Peer-to-Peer (P2P) platforms to help entrepreneurs tide the economic challenges and provide cash flow relief for micro, small & medium enterprises (MSME). MDEC will offer priority assessment to all applicants by screening your eligibility before submitting them to the selected ECF/P2P operators.
B. INVESTOR MATCHING PROGRAMME
In light of the COVID-19 Pandemic, getting through these uncertain times is a major worry for startups and access to investors is the biggest challenge that they will have to contend with. In response to this, MDEC is launching the Investor Matching programme to provide a platform for investors to seek potential investment and assist startups to fundraise during these tough times.
This initiative will provide a much-needed avenue of funding for many Malaysian-based startups and it has already signed on more than 60 investors to participate and support the Malaysian startup ecosystem.
C. FOUNDERS GRINDSTONE
Founders Grindstone empowers tech entrepreneurs to maximise their potential and focus on helping their fundraising journey. Entrepreneurs will receive first-hand coaching via intensive workshops conducted by professional partners from investors, venture capital, equity crowdfunding platform and legal firm. This programme will also equip founders with an understanding of regulatory and legal issues that they might face while raising funds.
D. M&A PROGRAMME
The COVID-19 pandemic presents new challenges and an unusual economic landscape for businesses and companies that are expected to pursue different strategic objectives. We are looking at Mergers and Acquisitions (M&A) as a potential strategy for companies that are looking for opportunistic growth or strategic restructuring. This programme will act as a platform for SMEs to connect with corporate arms and investors in knowledge sharing as well as potential deals.
