KUALA LUMPUR: Malaysia Venture Capital Management Bhd (MAVCAP) is en route to reaching RM1 billion in its fair value investment as early as 2023, chief executive officer Shahril Anas Hasan Aziz said.
Shahril said MAVCAP and its partners' total accessible fund size currently stands at RM2.2 billion.
He added that today, MAVCAP continues to be the backbone of the venture capital market, locally and regionally, supporting the government's efforts to collaborate with the private sector to spur growth.
"Collaboratively, with the government and private sector partners in securing venture capital funds, we created a pool of 'smart money' where MAVCAP will further champion innovation and propel the development of the digital economy.
"It is vital to foster a strong entrepreneurial spirit and a highly conducive ecosystem for small and medium enterprises (SMEs) and start-ups.
"Ultimately, MAVCAP must extend strong support to SMEs and start-ups because these companies will define the future of our nation," he said during his speech at the MAVCAP Accelerating Ventures 2022 session today.
Shahril said that since the 10th Malaysia Plan (MP10), MAVCAP, through its partnership with the private sector, has created a pool of venture capital funding accessible for technology start-ups amounting to RM2.2 billion.
"This is approximately 4.5 times more than what has been allocated by the government to MAVCAP under the Malaysia Plan.
"This multiplier effect has been able to ensure the sustainability of this industry, beneficial to fund managers and to champion innovation by start-ups. For example, one of our local unicorns Carsome, via various of our funds, MAVCAP, has invested approximately US$3 million, and the company is now valued at about 15.7 times the investment amount.
"This is a testament to our efforts in championing innovation on the global stage," he said.
Shahril said that for 2023, the company looks forward to playing more in the growth stage of the venture capital market, where it bridges the gap for funding as its current funds are predominantly in the early stage.
"This is to ensure the continuity of this ecosystem and with the mindset of contributing to the economy of Malaysia.
"We are inviting the private sector to work closely with our partners and us to be more active in this interesting space," he said.