First VC microfund launched on ECF platform Fundnel
By Digital New Asia March 18, 2022
- Aims to democratise access to venture capital funds
- Raises up to US$2.38 mil to invest in Emissary Capital Growth Fund 1
For the first time ever, Equity CrowdFunding (ECF) investors will be able to invest into a Venture Capital (VC) fund through a microfund on Fundnel’s ECF platform.
In a statement, the company said the microfund, Emissary Capital Partnership Feeder 1 PLT (Emissary Capital Microfund), is raising up to US$2.38 million (RM10 million) to invest in the Emissary Capital Growth Fund 1 (Growth Fund I), a Malaysia-based VC fund managed by Emissary.
It added that Emissary has set aside an allocation in the Growth Fund I’s total fund size of US$47.6 million (MYR200 million) to offer this microfund investment opportunity to ECF investors through Fundnel specifically with the purpose of democratising access to venture capital funds.
While ECF platforms in Malaysia, like Fundnel, already allow investors to make direct investments into startups, the ability to invest in a VC fund has traditionally only been available to institutional investors and private banking customers, it said.
Karen Puah, country manager of Fundnel Malaysia, said venture capital is one of the most exciting asset classes to invest in right now.
“Investing in this asset class through a VC fund offers the dual benefits of a diversified portfolio with potentially high returns.”
“We at Fundnel believe that the opportunity to invest in professionally-managed VC funds should be made available to more investors, which is why we started working on this with Emissary, who has been the ideal partner for this,” she said.
Growth Fund I targets the hottest late-stage and pre-IPO startups in Southeast Asia. With over half of Growth Fund I’s funds successfully deployed and revalued, Emissary Capital Microfund investors may enjoy an immediate unrealised gain on the value of their investment, the company said.
Investors can also get a clear sense of the type of investment opportunities which Growth Fund I will be investing in the near future, Fundnel said.
“The Emissary team has a long and stellar track record in the industry, which gives us access to some of the best deals in Malaysia and the region,” said Juhn Teo, general partner at Emissary.
“We are excited and honoured to be the first venture capital company in Malaysia to launch a microfund through an ECF platform, especially one as reputable and prestigious as Fundnel,” he said.
In a recent report titled ‘Southeast Asia Tech Investment - 2021 H1’ by Cento Ventures, Malaysia received just 4% of the total venture capital funds invested in the region in the first half of 2021 despite a record number of deals closed in Southeast Asia.
Efforts to boost the local venture capital ecosystem will help address this, Fundnel said.
“In line with our commitment to strengthen Malaysia as the preferred regional hub for technology companies, Fundnel plans to continue bringing more microfund investment opportunities to ECF investors the coming months, so that Malaysians can help contribute directly to the growth of the Malaysian startup scene, and revitalise our economy,” said Puah.
Fundnel cautioned this ECF opportunity to invest in the Emissary Capital Microfund is only open to sophisticated investors and angel investors, in compliance with the Securities Commission’s guidelines on recognized markets.
Investors are urged to refer to the Securities Commission’s guidelines on recognised markets for the classification of sophisticated investors and angel investors.
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