MDEC launches Alternative Funding Programme 2021

KUALA LUMPUR: The Malaysia Digital Economy Corporation (MDEC) has recently launched its Alternative Funding Programme for 2021.

This programme will see MDEC partnering with 11 crowdfunding operators to help entrepreneurs tide over the economic challenges brought on by the Covid-19 onslaught.

Chief executive officer Surina Shukri said this is MDEC’s second year running the Alternative Funding Programme led by its Global Growth Acceleration Division (GGA) following its successful launch in 2020 which culminated in 16 companies being listed on participating platforms with a total of RM19.89 million raised.

“Realising the pressing need that startups had in terms of business funding at the start of the Covid-19 pandemic, MDEC immediately sprung into action with a few funding facilitation programmes,” she said in a statement.

Launched in April 2020, the Alternative Funding Programme saw MDEC partnering with seven crowdfunding operators to offer alternative channels for startups to obtain funding as traditional routes posed a strong challenge.

Venture Capitalists (VCs) were also being less than receptive to new investments, especially towards early-stage startups due to the uncertainties caused by the pandemic.

Among the startups that successfully raised funding through the programme include PolicyStreet who raised US$1.8 million (RM7.8 million), the largest fund raised to date from an equity crowd funding (ECF) platform in Malaysia.

“With the continued disruption to businesses caused by Covid-19 in 2020, it is crucial for startups in Malaysia to be able to explore multiple avenues for funding.