Nascent corporate funding scene set to pick up pace: Page 3 of 3
By Goh Thean Eu February 13, 2017
Are startups keen on corporate funding?
As corporations tend to be more conservative when it comes to tech startup investments, it is less likely that funding will be done at high valuations.
Nevertheless, industry players believe that there are many benefits corporations can bring to the startups, besides funding.
"One of the reasons most startups die is due to the lack of customers, if these corporations hold access to distribution, it could be a win-win situation and not necessary a zero sum game," says Bikesh.
Lee Jee Shen (pic, above), founder of Softinn Solutions - a startup focused on the hospitality industry, adds that investors with corporate background could also provide regional and international market access. One of Softinn's investor is Axiata Group Bhd via the ADIF fund.
"They have opened many doors for us, and introduced many key contacts. This is especially useful as we are currently looking at expanding our presence outside Malaysia," says Lee.
But this space is still very nascent and when asked to rate corporate participation in the tech ecosystem, Jamaludin is decisive in giving it a score of 2 out of 10.