Malaysian angel network ties up with European counterpart
By Digital News Asia November 6, 2013
- Will cooperate to encourage more private sector individuals to play active role in helping entrepreneurs
- EBAN says Malaysia’s angel tax incentive strongest in the world, could be a benchmark for others
THE Malaysian Business Angels Network (MBAN) has signed a memorandum of understanding with the European Business Angels Network (EBAN) to support the development of angel investors in both economies.
Under the MoU, both parties will cooperate to encourage more high net-worth individuals from the private sector to play an active role in helping budding entrepreneurs build up their business ventures, Crade Fund Sdn Bhd said in a statement.
“Some countries in Europe have just taken their first steps in creating a network of business angel investors, so armed with the lessons we learned here, we are well-equipped in educating them on initiatives that would work to encourage more people to take up the vocation of being an angel investor,” said EBAN vice-president Ari Korhonen (pic, left).
Luis Galveias, director of the EBAN Secretariat, said that that EBAN is very impressed with Malaysia’s Angel Tax Incentive, which allows for a one-to-one tax deduction of up to RM500,000 (US$157,850) a year given to angel investors accredited with MBAN.
Describing the tax incentive as the strongest in the world, Galveias said it could be a benchmark other similar initiatives to attract more angel investors elsewhere.
“Angel investing is a risky business and incentives are really good to allay any initial fears first-time angels might have,” he said.
EBAN has also had similar partnerships with business angel networks in the United States, Canada, Brazil, Australia and New Zealand.
Cradle Fund chief executive officer and MBAN interim chairman Nazrin Hassan (pic above, right) said he hopes MBAN can leverage on the European organisation’s expertise in order to encourage more angel investors to come on board.
“We hope to work more closely with EBAN so that we can mutually support the developments of angel investor activities in Malaysia and Europe, and perhaps eventually encourage co-investments by European angels together with Malaysian angels, in domestic technology startups,” he said.
EBAN was established 13 years ago and has over 100 member organisations in 28 European nations.
MBAN, which Cradle kicked off last December, has received 15 applications from Malaysians that hope to be accredited as angel investors. Cradle, which recently celebrated its 10th anniversary, is an agency under Malaysia’s Ministry of Finance.
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