Hatchlings Games

Web Gaming 2.0 Revolution

Funding options for Malaysian entrepreneurs

From what I gather from the blog stats, there is a possibility that you are an entrepreneur living in Malaysia; and you are seeking for funding. Anyway, whether you are one or not, here are some funding methods:

Grants

The above list are grants, which means you do not need to pay the grant administrator back (there will be conditions and you should always ask first). Of course government grants are public funds. Use them well and responsibly.

Pre-Seed Funding

To start up your venture, Cradle is a good choice. All you need is a good ICT idea and a rough business model. Do not wait, apply online immediately – then you will learn what they want to know in the application. But pay careful attention to your application because they take a long time to respond to funding requests; it took them six months to get back to us (there are no communication in between). Cradle is managed by MAVCAP or Malaysia Venture Capital Management Bhd – that means that Cradle is a step towards larger angel or venture capital funds.

After your Cradle grant funding period with is over, you can apply for a larger Cradle grant (rumour) of RM250,000. After that you can grow through your revenues and/or Angel or Venture Capital investment.

While waiting for your grant approval, you should design (not develop) your product, look for potential customers, pitch your idea to EVERYONE regardless of status. It will pay off. You will find out new things about your idea, have a better idea on which are of the plan and yourself that you need to improve on.

If you are in the content industry (games, animation, comics, mobile contents), MDeC have an IP Creators Series Grant. This content grant just started last year. Click on the link above to find out more. We used the proceeds from this grant for our game Quasr.

MDeC’s pre-seed fund is also new and has the largest funding size among the other pre-seed grants. Note that you cannot have a registered company (Sdn. Bhd.) when you seek this funding. That is what stopped us from applying. Well, don’t register your company until you really need to – like when you get a term sheet from a venture capital investor.

Seed Funding

Once you got your product’s prototype out, you will need further funding to continue development and go-to-market. If you are building web-based applications, you might even have your BETA website up; but you probably wont get much money back from that. You need time to build traffic, improve features, polish and marketing. At this stage you will need to hire at least a few full-time employees (plus your army of cheaper part-timers who believe in your vision while getting your grant or even before that).

To fund this stage of growth, you can either get more grants (that you are eligible for), seek debt or equity funding.

If you have some ICT projects from some other company/government (like when another company give you a project to accomplish, or when a publisher give you a green light for a publishing contract) and you need to have cash-flow to finish the project, you can seek out Malaysia Debt Ventures (MDV). Check out their website for more information, and after that call them up!

If you are starting a venture like YouTube.com or Second Life, you will need a reasonable amount of seed capital for development (payroll, consultation, tools and licenses) and hardware servers when your BETA products are out. To finance this you can seek out Venture Capital Investment, where you will have to give up a significant % of shares for the money they inject into your company.

If you need anything below 1 million, private (professional or non-professional) angel investors (rich man who wants to invest in startups) might be able to do the job.

Debt and Equity Investments

Do not limit your funding to Malaysia, you can also go to Singapore – which I am going to write about next. We are seeking Singaporean investment and will draw a roadmap for that as well.

Roshan & Slade Loging off…

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January 5, 2007 - Posted by | Entrepreneurship, Malaysia

14 Comments »

  1. […] Funding options for Malaysian entrepreneurs […]

    Pingback by It’s just a sign of you building a company « Hatchlings Games | June 17, 2007 | Reply

  2. […] Funding options for Malaysian entrepreneurs from Hatchlings […]

    Pingback by Cradle Interview at Cradle Investment Fund, Jalan Binjai, Kuala Lumpur : Hisamudin.com - Re-engineering Life | August 29, 2007 | Reply

  3. Its interesting to read about the funding oppurtunities in Malaysia for Entrepreneurs. Seems pretty similar to Singapore in a lot of regards since the non-existence of serious Series-A type VC’s.

    What are the common business people tend to start in KL? How is the IT/ Hi-Tech, Services sort of industries?

    Thanks and Regards,
    Sandeep Balaji
    http://www.Qiu-inc.com

    Comment by Sandeep Balaji | October 24, 2007 | Reply

  4. Nice to see that you are creating some awareness of the various funding opportunities that are available in the market.

    More start ups should be aware of such avenues and should in fact, explore such opportunities!

    Best Regards,

    Gerard Pillai

    Comment by gerard pillai | December 10, 2007 | Reply

  5. Hey thanks for the list of fundings. Very useful indeed!

    Comment by QuaChee | March 6, 2008 | Reply

  6. thanks too. funding~
    🙂

    Comment by yecutp | March 11, 2008 | Reply

  7. […] full news click here. No Comments Leave a Commenttrackback addressThere was an error with your comment, please try […]

    Pingback by Funding Options for Entrepreneurs « YecUTP’s Weblog | March 11, 2008 | Reply

  8. […] For full news click here. […]

    Pingback by Funding Options for Entrepreneurs -- yecutp.com | March 12, 2008 | Reply

  9. Well, i just wonder as the post is about ict products, how about if i got ideas of new products which can improve our lifes but not ict relatet, cna i apply to the fund as well?
    More over, if like what you say, we can approach other company to sell them our idea, will the idea leak? should we go pattern our product 1st?

    Comment by Eric SK | March 14, 2008 | Reply

  10. […] Funding Options in Malaysia […]

    Pingback by How to activate your creative state « Hatchlings Games | July 5, 2009 | Reply

  11. Hi I am Han, a malaysian working in Singapore.

    I am not a IT graduate, but I am one of the founder of China TVants, an online peer to peer streaming web 2.0 platform, which I quit the directorship in 2005.

    I am having a plan of returning to Penang very soon with my wife. I would like to start a new venture – Real Estate Exchange, which is a web 2.0 platform to aggregate various tiny investors all over the world to buy into properties, and help to manage and generating rental return for them.

    Just wonder how can I proceed to apply for the government grant.

    Thanks

    Han
    admin@livingwhere.com

    Comment by farmountain | August 24, 2009 | Reply

  12. […] Also, when you check your closets and book shelves, you will find that you have so many items that are used or new, but are no longer useful or wanted. Read More… […]

    Pingback by Where and How to Sell or Swap Unwanted Items | July 4, 2012 | Reply


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