‘Angel investors’ out to excite business start-ups
KUCHING: The Kuching Chinese General Chamber of Commerce and Industry (KCGCCI) and Sarawak Digital Economy Corporation (SDEC) hope to excite the local start-up ecosystem by bringing in ‘angel investors’ to provide capital.
KCGCCI president Datuk Tan Jit Kee said despite being regarded as a relatively new concept in Malaysia, angel investors were already a trend in other countries.
“It is a way for start-ups to seek financing, as the first threshold encountered by most entrepreneurs in our country is lack of funding,” he said in his opening remarks for the hybrid ‘Angel Investor Programme’ yesterday, where the physical event took place at KCGCCI Innovation Hub here while the virtual broadcast was conducted via Zoom.
An ‘angel investor’ refers to an individual who provides capital for one or more business startups, usually in exchange for convertible debt or ownership equity.
Also, these investors usually give support to start-ups at the initial moments and when most other investors are not prepared to back them up.
The programme yesterday was jointly organised by SDEC and KCGCCI, in collaboration with the Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) and the Malaysia Business Angel Network (MBAN).
Adding on, Tan said in recent years, the Sarawak and federal governments had been promoting start-ups and with respect to the private sector, there was a business angel network aimed at mobilising private capital, indirectly supporting start-ups.
“With the existence of the angel investment mechanism, it would greatly reduce startups’ difficulties of starting their operations,” he pointed out.
Meanwhile in his speech, SDEC chief executive officer Sudarnoto Osman disclosed that the Sarawak chapter of the MBAN was in the works.
“This chapter would serve as a platform for individuals and investment-oriented entities to participate in the start-up investment opportunities, and also as a chance to connect with existing members of MBAN across the country and explore investments beyond Sarawak,” he said.
“One of the key benefits of being a member of MBAN is that you can enjoy tax relief of up to RM500,000 annually for investments made in early-stage tech companies.
“So, do consider taking this opportunity.”
The programme covered sessions conducted by SDEC head of innovation and entrepreneurship Hazwan Razak, as well as MBAN president Alan Lim and vicepresident Dr Melissa Foo from Kuala Lumpur, where they shared with the participants their knowledge about the topic.
Also attending were Centre of Technical Excellence for Sarawak (CENTEXS) chief executive officer Syeed Mohd Hussein Wan Abdul Rahman, and KCGCCI chairman of digital economy committee Rodger Chan.