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Top Venture Capital Firms and Angel Investors in Singapore

Angel investors in Singapore

Angel investors are private investors who typically not only invest capital but also contribute their business expertise/skills in early-stage businesses in exchange for a significant share in the company. They can be individuals, or be part of an angel network that engage in investing in businesses with high growth potential and in the industries that they are familiar with. That said, there are some business angels playing active roles in the business while others act as sleeping partners. Angel investors are typically wealthy High Net Worth Individuals or successful businessmen with an appetite for startup companies with higher risk (but that are promising enough to yield higher returns). Therefore your startup should have a high growth potential, in order to win the favour of business angels.

Venture capitalists in Singapore

Moving on to the venture capitalists, these are typically professional investors who have a more hands-on role in your business if they were to invest in your company, and they typically do so with the vested interests of their own clients’ profitability.

Venture capitalists offer not only funding but also advice on increasing your business profitability, and possibly in operational matters as well, especially if your business requires input from different areas of expertise in the team.

Popular startups for venture capital funds are those in high growth potential sectors such as IT, biotechnology and nanotechnology with a competitive edge in the market and longevity of profiteering. Startups whose business involve scientific breakthroughs, Intellectual Property creation and other similar large-scale impact businesses are often favoured by these venture capitalists.

The venture capital industry in Singapore is relatively new and small compared to the US and Europe. Nevertheless, there are actually more than 100 venture capital firms in Singapore ranging from independent limited partnership venture capital firms to corporate-backed venture capital firms.

If you intend to start a company in Singapore and need startup funding, read on for our list of the top 22 Venture Capitalist (VC) firms and angel investors in Singapore.

1) B Capital Group

One prominent angel investor in Singapore is Facebook’s co-founder Eduardo Saverin, and his venture capitalist firm B Capital Group which he launched in 2014 with a $144 million venture fund focused on India, South-east Asia and the US.

B Capital Group backs the next generation of ground-breaking technology companies and has offices in Los Angeles, San Francisco, and Singapore. It has partnered with the Boston Consulting Group, and its incubation arm BCG Digital Ventures.

2) Golden Gate Ventures

With founding partners in Singapore and San Francisco, this is an early-stage VC firm in Southeast Asia bridging Silicon Valley and Asia through investment, experience, and relationship building, and has over 30 investments across seven countries.

One of the founding partners of the firm is Jeffrey Paine who invests in consumer internet, social media, digital entertainment, e-commerce and crowd-sourcing. Some of his latest investments are Aptoide, Xfers and MyMusicTaste.

Another founder partner Vinnie Lauria who was based in Silicon Valley before moving to Singapore has invested in Coda Payments, Nitrous and Lenddo.

3) Jungle Ventures

A VC firm partners regional consumer internet category leaders in retail, financial services, travel and hospitality, healthcare and several other sectors. It aims to tap into ASEAN’s high-growth cities and their rapid growth in online consumer behaviour in terms of online media, social networks, mobile apps and aspirational consumption habits.

The firm, under its Managing Partner and founder of Sony Entertainment Television Jayesh Parekh, has invested in 500 Startups, PubNub, and Artiman Ventures.

Another founding partner Amit Anand has invested in DocDoc, eBus, iMoney and Fastacash.

4) 500 Startups

500 Startups is a global venture capital seed fund with a network of startup programs head-quartered in Silicon Valley with over US$350 million committed capital across four main funds and 13 micro funds. It has invested in +1,700 technology startups all over the world since its inception in 2010 including Twilio, Credit Karma, Grab, Udemy, Talkdesk, Intercom, and MakerBot.

The firm’s Managing Partner in Southeast Asia is Khailee Ng, a notable angel investor in Singapore. Another of its partner in Vietnam is Eddie Thai who has been listed in Forbes Vietnam’s 30 under 30.

5) Singtel Innov8

Singtel Innov8 is a US$250 million corporate venture capital fund with its own set of decision-making, approval and funding processes and owns presences in Singapore, Silicon Valley, Tel Aviv and other markets. The fund focuses its investments on technologies and solutions that lead to quantum changes in network capabilities, next-generation devices, digital content services and enablers to enhance customer experience. It works closely with the ecosystem of leading innovators, developers, government agencies, R&D and capital providers to bring cutting-edge technologies and solutions to the various markets the Singtel Group operates in.

6) Sequoia Capital

In aggregate, Sequoia-backed companies account for more than 20 percent of NASDAQ’s total value. In the last 45 years, Sequoia has worked with Steve Jobs, Larry Ellison, John Morgridge, Jerry Yang, Elon Musk, Larry Page, Jan Koum, Brian Chesky, Drew Houston, Adi Tatarko and Jack Dorsey, among many others.

7) Monk’s Hill Ventures

Monk’s Hill Ventures is a partnership of seasoned entrepreneurs who have built and backed global companies based both in Silicon Valley and Asia. It’s a VC firm investing in post-seed stage tech startups that will take advantage of the fast growing South-east Asian markets.

The firm’s co-founder Kuo-Yi Lim, hasinterests in enterprise software, mobile consumer internet, and Big Data; and has invested in DataXu, Gengo, Kalibrr and Reebonz.

8)Quest Ventures

Quest Ventures, based in China and Singapore, is a leading venture fund for companies that have scalability, and are replicable in large internet communities.

9) Life.SREDA

This is an international VC firm, headed by Slava Solodkiy and established in 2012 in Singapore. It has already invested in more than 20 FinTech companies around the world through its two funds Life.SREDA I (US$40M) and Life.SREDA II Asia (US$100M).

10) Wavemaker Partners

As part of the Draper Venture Network, which has 10 funds across four continents, this VC firm can help startups gain access to global insights and scale.
Paul Santos who is the Managing Partner at the firm has made investments in Ardent Capital, Luxola, and TradeGecko.

11) Crystal Horse Investments

Crystal Horse Investments was founded in Singapore and is the official fund manager of Angel’s Gate, Asia’s first reality TV series with a focus on business and entrepreneurship. It invests in companies in Singapore and Malaysia where it thinks there is value in the long-term and also where it can add value to the company.

12) Coent Venture Partners

COENT provides seed and venture-stage funding to entrepreneurs and companies across all sectors in Asia, as well as support in management, overseas business development and exposure to business networks.

13) East Ventures

East Ventures has offices in Jakarta, Tokyo, and San Francisco, and has invested in over 150 companies across Asia and the US. Its portfolio of companies focuses on commerce, social, game, SAAS, and mobile services.

The firm’s co-founder and Managing Partner is Willson Cuaca, who is also the CEO of Apps Foundry. His investments include Tech in Asia, Waygo, RedMart and Megafash.

14) Gobi Partners

Founded in 2002, Gobi Partners head-quartered in Shanghai has an investment focus on early-stage, digital media, IT and TMT companies. The firm has raised seven funds to date, and has invested in over 100 portfolio companies across China, Hong Kong and ASEAN over the past decade.

The firm’s founding partner Thomas Tsao participated in the development of several leading companies such as Brite Semiconductor, Camera360, CiB, CSDN, Line0, Madhouse, World Traveller and Yoyi Digital—often serving on the company’s board of directors.

15) Spiral Ventures

Head-quartered in Singapore, this VC firm invests typically in Seed to Series A companies, especially B2C and C2C platform business in South-east Asia. Its parent company is IMJ Corporation, which is the biggest digital agency in Japan.

16) Incubate Fund

Since the establishment of the Incubate Fund in 2010, it has invested US$170million in seed startup businesses, including more than 120 companies through its related fund in the last five years.

17) Innosight Ventures

It is a Singapore-based early-stage venture investment firm, investing in high-potential South-east Asian ventures. Aided by the Innosight Consulting Team, it claims to have developed a proprietary methodology that enables it to spot, shape and scale successful startup companies.

The firm’s partner Piyush Chaplot, has invested in MyVR, Anchanto, Chope and LuxeNomad.

18) KK Fund

This fund invests in seed stage internet and mobile startups across South East Asia, Hong Kong and Taiwan. Its founder and general partner Koichi Saito, was previously a director at IMJ Investment Partners and was responsible for investments in iMoney, Bukalapak, and Zipmatch.

19) Rakuten Ventures

This fund is part of the Rakuten Group, one of the world’s leading internet service companies. Rakuten has built and invested in innovative internet businesses in e-commerce, financial services, digital content and advertising since 1997. The company is head-quartered in Tokyo.

The firm is headed by its Managing Partner Saemin Ahn, who invests in diverse verticals such as advertising technology and artificial intelligence. His investments include Carousell, Pocketmath and Algorithmia.

20) Tri5 Ventures

Based in Singapore, this focuses primarily on angel to seed-stage investment in technology startups across South-east Asia. It specialises in deep technologies, AI and data science tech startups in the fields of Fintech, Energy Tech, Education Tech and Marketplaces. It has supported 38 startups with US$5.3m in seed funding.

Tri5’s Managing Partner Christopher Quek is also the director and incubator of Angels Gate Advisory (AGA), a community pro-bono advisory service which supports entrepreneurs in grants and advisory.

21) UOB Venture Management

UOB Venture Management Private Limited is a wholly owned subsidiary of United Overseas Bank (UOB) Limited, one of Asia’s leading international banking and financial groups. Operational since 1992, the fund has provided financing to more than 100 privately-held companies through direct equity investment, mainly in Southeast Asia and Greater China.

22) DreamLabs

DreamLabs is a $50 million fund established to invest in disruptive, scalable, people-focused companies in the areas of Cleantech, Fintech, eCommerce, Healthcare and Energy. Besides capital, the fund also provides mentorship, networking and physical infrastructure at their incubator in Singapore’s CBD.

23) Rikvin Capital

Apart from the above, entrepreneurs and companies can also access services of Rikvin Capital, which is Singapore’s alternative private funding specialists. In 2018, they funded various projects to accredited investors and corporates who needed short-term funding for investments against their secured assets. This is a non-traditional source of funding and is suitable for those that are affected by Total Debt Servicing Ratio (TDSR) or have no track record with financial institutes.

Business Angel Network

There are also networks for you to refer to in seeking a business angel investor(s). An example is the Business Angel Network Southeast Asia (BANSEA) that matches startups in the seed stage of enterprise formation with business angels. BANSEA invests in companies that offer exceptional opportunities for high returns on investment, which usually involves early-stage ventures with a high growth potential, either in a developing market (especially in emerging markets) or in an existing market with international expansion capabilities, and that is sustainable in the long-run.

Private funds in Singapore

Finally, there is the option of private funds such as banks, financial institutions, and investment companies. These sources of funding are very rarely involved in an active role in managing the business. This gives you the autonomy of conducting your own affairs in the manner you deem best, as their main purpose is to receive an attractive return (usually in the form of high interest from 7-12 percent) on their investment.

Thus, businesses that are already established, have a good credit track record, are already generating revenue in high amounts, and have a high growth potential would benefit from such sources.

In Singapore, however, there are micro loan programmes instituted by the Singapore government under the auspices of Spring Singapore and IE Singapore that facilitate your taking of small loans from participating financial institutions like UOB, OCBC, DBS, Standard Chartered Bank.

by Rikvin, subsidiary company of In.Corp Group, Singapore’s leading corporate solutions company with presences in multiple countries and thousands of clients around the world.

14 Key Fintech Investors in Malaysia You Should Know About

14 Key Fintech Investors in Malaysia You Should Know About

With a regulator that has been described as open to innovation and disruption, a maturing tech scene,  a mobile-friendly population, and a financial scene rife with incumbent and outdated technology, there is definitely a lot of potential in this region for fintech, if you’re hitting all the right notes.

These factors and more make Malaysia an appealing market for VC investments.

Despite dealing with finance though, it’s an open secret that fintech companies in Malaysia are ironically often strapped for cash. It’s not that there isn’t any money flowing into fintech companies, merely that they’re often focused on very specific places.

So based on publicly disclosed values, we’d like to shine a spotlight on some investors Malaysian fintech companies should know about, and some of the local companies in their portfolio.

[Seed Stage] Cradle

Cradle is one of the better-known investor companies in Malaysia, and has often been described as one of the builders and shapers of the Malaysian startup and tech field.

It is often known as the early investor into some of Malaysia’s tech giants today, like Grab and iMoney. Their investments are not limited to fintech, and covers a wide scope of startups

Malaysian fintech companies in their portfolio: MyCash Online, PolicyStreet, iMoney, Grab (prior to the GrabPay e-wallet push).

[Various Stages] Khazanah Nasional

Khazanah Nasional has been investing into companies locally and internationally since even the dotcom era. To this day, their biggest investment success is to inject money into pre-IPO Alibaba Group.

While Khazanah’s keen eye often looks out for larger corporations to pour their cash into, the sovereign fund has also launched Khazanah Nasional Entrepreneurship Outreach (KNEO), in collaboration with local accelerators 1337 Ventures, WatchTower & Friends, which has been known to nuture fintech startups through their programmes.

These efforts reflects Khazanah’s statement early this year: “This means that we could find clever smallish technology companies to invest in without having to pay lofty prices”

They are open to investing in local companies but did not provide any concrete assurances, perhaps holding out for a local company that they can truly believe in.

Khazanah has not disclosed any local fintech companies that they’ve invested in, but some notable local names include FashionValet.

[Seed Stage – Early Stage] KK Fund

KK Fund is a venture capital organisation that invests in seed stage internet and mobile startups across Southeast Asia, Hong Kong and Taiwan.

But as for KKFund itself, the Singapore-based company was founded by venture capitalists Koichi Saito and Kuan Hsu. The company seems to prefer Seed Round investments, and its portfolio has an extensive array of Malaysian companies of various backgrounds.

Malaysian fintech companies in their portfolio: PolicyStreet, CapitalBay.

[Seed Stage] MAVCAP

In 2001, the Malaysian government founded MAVCAP in the hopes of growing the burgeoning ICT industry in Malaysia. 17 years later, and they too have been caught in the startup fever that swept the nation.

The company’s goal is to help small or new companies to survive its difficult early years, because even innovative products could fail due to lack of resources. They have quite a variety of companies under their portfolio, and seem open to taking risks on rather unusual ideas or concepts.

Some of their previous investments include known names in the startup scene such as Grab, Fashion Valet, Hermo, The Lorry, Katsana, Easy Parcel, Aerodyne, and Carsome.

Malaysian fintech companies in their portfolio: Jirnexu, Billplz, Simply Given, Crowdo, Katsana, Grab (prior to their GrabPay push).

[Seed Stage] Captii Ventures

While it has not made any investments in the Malaysian fintech sphere of its publicly disclosed funds, Captii Ventures is based in Malaysia and have invested in quite a few fintech companies, like C88, UangTeman, Sepulsa, OnOnPay, and Pouchnation, many which are based in Indonesia.

Of its portfolio, the company has also invested in Malaysia-based Bfab, which again, implies that they would consider both a Malaysian and fintech company provided that it will add to their portfolio.

The company seems to prefer joining in a company’s seed round, but has shown precadent for Series B investments.

[Early Stage] Sumitomo Mitsui Card Co (SMCC)

So far, Sumimoto Mitsui has only invested into one Malaysian company, but their injection landed Soft Space into the list of one of the most well-funded fintech companies in Malaysia (of publicly disclosed values).

On a typical Monday, the Sumimoto Mitsui Card Company issues Visa credit cards to individuals in Japan, along with settlement services and credit finance loans to cardholders.

The company invested into Soft Space for both Series A ($5M) and Series B. Besides Soft Space, Sumimoto Mitsui has also invested in two other USA-based companies, Square Inc and Stripe Inc,

Sumimoto Mitsui has proven that they have a keen interest in funding fintech, and will continue to invest in the same company through further funding rounds as long as their investments prove themselves.

Malaysian fintech companies in their portfolio: Soft Space

[Seed Stage – Early Stage] OSK Ventures

While OSK Ventures does do Seed Round investments, its goal is to invest in established companies with a regional presence in their mid to late stages.

An affiliate of the OSK Holdings Berhad company, OSK Ventures has established itself as an investor in the region. On top of its usual operations, OSK Ventures has teamed up with Japan’s SBI Holdings Inc to form a joint venture fund to invest in promising prospects within the ASEAN region just in June.

The OSK-SBI Dynamic Growth Fund, as of July 2018 had $20 million to invest, including to promising Malaysian companies.

OSK Holdings, other than Jirnexu ($1.5M), has also invested in Singapore-based 4xLabs, which focuses on foreign exchanges, which showcases precadent for fintech in this region.

Malaysian fintech companies in their portfolio: Jirnexu

[Early Stage] Axiata Digital Innovation

Despite bearing the name of Axiata, Axiata is well-known as a Celcom affiliate, and the backers of one of the more prominent e-wallets, Boost, the fund is actually a collaboration between Axiata and MAVCAP.

The fund exists specifically to help cultivate the Malaysian ecosystem, with a particular focus on Bumiputera ventures, though it is not limited to it.

A cursory glance of their publicly disclosed funds reveals that the organisation is more interested in Early Stage companies that are slightly more mature, seemingly only joining the second or third round of investments.

They invest in companies from a variety of backgrounds, including fintech.

Malaysian fintech companies in their portfolio: Katsana

[Early Stage] SBI Group Japan

Image Credit: SBI Holdings

SBI Holdings has recently made the news cycles for launching Japan’s first bank-backed cryptocurrency exchange, but is otherwise known as a financial services group based in Tokyo.

As such, they have a keen interest in fintech investments from across the globe, with some of their more recent investments particularly focused on the USA region, though there have been sprinklings of investments throughout the globe.

The company has been seen joining a seed investment round in Japan, but as for their foreign investments, SBI Holdings seems more keen on early-stage funding, though there is one notable instance of a Series E funding into eToro.

Malaysian fintech companies in their portfolio: Jirnexu

[Early Stage] 500 Durians (extension of 500 Startups)

500 Startups has a strong presence throughout the globe, as is often seen as one of the movers and shakers of global tech and entrepreneurship trends–or at least an organisation that has a key eye on it.

The company’s Southeast Asian region is called 500 Durians, and is very prominently led by Khailee Ng of Says.com fame.

500 Durians will provide early-stage funding seemingly to startups from any background, as long as they have a solid idea. However, they have also shown notable interest in fintech-based companies and have backed organisations that have become prominent in the local fintech scene.

Malaysian fintech companies in their portfolio: billplz, Grab (prior to e-wallet push), HelloGold, iMoney.

[Early Stage] Gobi Partners

Gobi Partners is an early stage venture capital firm that focuses on IT and digital media investments in China. Since their launch more than a decade ago, they have since expanded to seven countries, with a base in Malaysia called Gobi Mavcap Management.

They are known as the backing entities behind companies that have a relatively prominent reputation among the Malaysian startup scene.

Even among Malaysian companies, Gobi Partners has shown precedence for investing in the same company as the investment rounds add up, if the company performs well enough under their first injection.

Malaysian fintech companies in their portfolio: Jirnexu

[Seed Stage – Early Stage] Monk Hill Ventures

Monk’s Hill Ventures is a VC firm started by a group of fellow entrepreneurs, based in both Indonesia and Singapore, and have backed tech companies in both Silicon Valley and Asia, with focus on Southeast Asian markets.

Earlier this year, it engaged Mohd Ridzwan Nordin, previously with Khazanah as a Malaysian venture partner, which seemingly indicates interest in Malaysian organisations moving forward.

According to e27, of particular interest to Ridzwan are fintech, enterprise software, edtech and B2C. This same focus on fintech is reflected in the company’s, other investments which includes Finaxar, Scalable.capital, C88, and Playlab, all coming from different nations and backgrounds.

The company seems to prefer earlier stage investments, up to Series C though that was a continuation of a previous Series B funding.

Of publicly disclosed funds, there doesn’t seem to be a notable instance of a Malaysian fintech investment at the time of writing, but the field has been described as one area of interest for Ridzwan.

[Various Rounds] Golden Gate Ventures

Image Credit: Golden Gate Ventures

Golden Gate Ventures is an early-stage VC firm based in Singapore, with an interest in Southeast Asian companies.

Most recently, Golden Gate Ventures has set up a $10 million fund named LuneX for investments in the realms of blockchain and cryptocurrency.

This fund seems more interested in Singaporean companies, but the company has previously invested in Malaysian companies before, like ServisHero, as well as fintech companies, like MoneySmart and CodaPayments. Therefore, it seems likely that the company will invest in a Malaysian fintech company as long as they come across one that they like.

Malaysian fintech companies in their portfolio: N/A

[Various Rounds] Sun Sea Capital

Besides just running their own investment firm,  KK Fund has partnered with Sunway to launch Sun SEA Capital, and while they won’t be exclusively investing in fintech, it is one of the key areas of focus for the company.

Due to its status as a more recently launched fund, Sun Sea Capital has yet to have to develop a robust investing portfolio, but considering the involvement of KK Fund though, it seems likely that its portfolio will reflect KK Fund’s investment philosophies.

The joint venture has also informed Fintech News Malaysia that fintech is one of the key areas of focus for the fund.

by Fintech News Malaysia

Malaysian Business Angel Network (MBAN)

The Malaysian Business Angel Network (MBAN) is the Official Trade Association And Governing Body for Angel Investors and Angel Clubs in Malaysia. It strives and aims to put forward the agenda of Angel Investing in an all inclusive manner for the benefit of members, the Angel ecosystem and start-ups.

Who Are We?

The Malaysian Business Angel Network (MBAN) is the official trade association and governing body for angel investors and angel clubs in Malaysia. It strives and aims to put forward the agenda of angel investing in an all inclusive manner for the benefit of members, the angel ecosystem and start-ups.

What Do We Do?

MBAN is responsible for the accreditation of individual angel investors and angel investors clubs, creating awareness and training for angel investors, as well as monitoring angel investment statistics in Malaysia.

MBAN is a body that functions like a trade organisation, driving regional and international linkages between angel investors from different countries. Cradle Fund Sdn Bhd, through its Angel Tax Incentive Office, acts as the secretariat for MBAN. It is the aspiration to have a private entity manage MBAN in the near future.

MBAN’s vision is to become the official voice of the Malaysian angel investor community as well as a platform for engagement and knowledge sharing for domestic and international angel investors. It also aims to foster the development of angel investing ecosystem within Malaysia.

MBAN is registered under the Societies Act, 1966 (ROS Reg. No. PPM-016-14-03122014).

How Do We Support Investors And The Ecosystem?

Angel Education
We run our quarterly Angels in the City Investor Workshops & bi-annual Wadwhani Foundation ‘deep dive’ courses.

Deal Flow Sourcing & Management
We organize our monthly Angels in the City Pitch Sessions where we select and showcase potential deal flows to our members.

Networking
We work closely with agencies such as Cradle Fund Sdn Bhd, which gives us the opportunity to connect with the wider start-up ecosystem in both Public and Private sectors.

Advocacy
We try to affect policies for the benefit of the investing public.

What Are Our Objectives?

  • To provide the vision and direction to drive the development of the angel investment ecosystem.
  • To verify and certify angel investors and/or clubs in Malaysia.
  • To track the development and growth of angel investments within the country.
  • To facilitate the setting up of angel clubs in Malaysia.
  • To run angel investment training and development programs for both new and experienced angel investors.
  • To advise the Government on issues pertaining to angel investments in Malaysia.
  • To encourage high income earners and high net-worth individuals to get involved in angel investing.
  • To lobby for policies and incentives that encourages angel investments in Malaysia.
  • To develop a platform in order to allow deal flows and investment proposal submissions.
  • To disseminate and share deal flows, investment proposals and submissions.
  • To organise regular networking events in order to create a tighter angel investor community and also to foster best practices.
  • To conduct other necessary initiatives for the benefit of the association.
  • To provide education and to create awareness on angel investment in Malaysia to spur the growth of business angels in the country.

ANGEL TAX INCENTIVE FACT SHEET

What is Angel Tax Incentive?

Angel Tax Incentive is a new initiative approved by the Government to encourage more early stage investments by the private sector. This incentive hopes to reduce the risks usually associated with early stage investments by giving back in the form of tax exemption to the investors.

Who administers the Angel Tax Incentive?

Angel Tax Incentive is administered by the Angel Tax Incentive Office (ATIO), a unit under Cradle Fund Sdn Bhd (Cradle). The investment made must be approved and endorsed by the Ministry of Finance, Malaysia. After two (2) years from the point of investment, the angel investors may file their personal income tax through Lembaga Hasil Dalam Negeri (LHDN), which then will process their income tax filing for tax exemption.

The angel investors however, need to keep the MoF’s tax incentive approval as proof of investment in the certified investee companies as required by LHDN.

What is the Tax Incentive’s purpose and ATIO’s role within technopreneurship ecosystem?

The Angel Tax Incentive is designed to encourage more angel investments from the private sector into early stage companies in technology space. As such, ATIO’s role is to ensure that start-ups seeking investments from accredited angel investors are eligible and that investments made into these companies are genuine.

The Angel Tax Incentive is designed to bridge the early stage investment gap by encouraging qualified individual investors to invest in early stage technology start-ups in Malaysia, to boost the growth of start-ups.

How does the Angel Tax Incentive work?

The investee companies will first have to apply with ATIO to receive qualification for investment under Angel Tax Incentive where they can then obtain a letter to present it to the accredited angel investors. ATIO will then submit all investment related documentations to MoF for approval & endorsement after the investment takes place.

Who provides accreditation to angel investors?

Angel investors who are keen to invest would have to go through the Malaysian Business Angel Network or better know as MBAN to get accredited. The accreditation will be valid for two (2) years and is renewable.

MBAN is responsible for the accreditation of individual angel investors and angel investor clubs, creating awareness and training for angel investors, as well as monitoring angel investment statistics in Malaysia. MBAN is a body that functions like a trade organization, driving regional and international linkages between angel investors.

What is MBAN’s role in the angel investment ecosystem?

Malaysian Business Angel Network or better known as MBAN is a body that functions like a trade organisation, driving regional and international linkages between angel investors. MBAN is responsible for the accreditation of individual angel investors and angel investor clubs, creating awareness and training for investors, and monitoring angel investment statistics in Malaysia.

Cradle on the other hand, serves as the interim secretariat for MBAN. The network is managed by a pro-tem committee comprising of various government agencies and angel groups including Angels Den, Virtuous Investment Circle (ViC), Pikom Angels Chapter and AIPO Business Angels Club.

How does ATIO work co-relatively with MBAN?

ATIO works closely with MBAN. MBAN, representing the private sector, will accredit the angel investors, whilst ATIO, representing the public sector, will provide qualification to the start-ups and validate the investments into these companies.

What is the investment focus areas covered under this initiative?

Angel Tax Incentive’s investment focus is in diverse areas of high growth technology industries with innovation including the following:
 Advanced electronics and information technology;
 Telecommunications;
 Equipment/instrumentation, automation and flexible manufacturing systems;
 Healthcare;
 Electro-optics, non-linear optics and optoelectronics;
 Advanced materials;
 Transportation;
 Value-add services; and
 Emerging technologies

About Investee Company

What does Investee Company mean?

Investee Company refers to technology-based start-up who is looking for investment/funding from the private sector.

What is the eligibility criteria as an investee company?
 Minimum 51% Malaysian owned;
 Must be a Sdn Bhd company and incorporated in Malaysia and residing in Malaysia
 Company’s core business must be in qualifying activities as approved by the MoF under the focus areas of investment
 Cumulative revenue less than RM5 million and has been in operation for 3 years or less (based on the latest financial year result upon application); and
 The company must not be wind-up and/or in liquidation.

The validity period of an investee company’s certification is only one (1) year and renewable annually. Cradle has the rights to review the qualifying criteria for the said investee company and when required during the period.

The investee company is obligated to notify Cradle of any changes of the company’s status which relates to the above criteria.

What is the qualifying period to apply as an investee company?

The qualifying period to apply as an investee company starts from 1 January 2013 until further notice.

How long is the investee company’s qualification period for investment under Angel Tax Incentive?

The validity period is two (2) years only.

How does my company obtain investment from the investor?

The ideal situation would be that the investee company must already be in talks/discussion with the potential investors before applying to Cradle. The tax incentive would be an enticing motivation for the angel investors to make an investment into the investee company.

If my company currently receives financing from other avenues ie governmental grants or venture capitals, can I still apply?

Yes.

About Angel Investor

How do I become an investor and to apply as an angel investor?

For an angel investor to be eligible for the Angel tax Incentive, you need to be registered with and accredited by the Malaysian Business angel Network (MBAN). The eligibility criteria consists of the following:
 Must be a tax resident in Malaysia;
 Either considered a High Net Worth Individual or High Income Earner

o High Net Worth Individual – Total wealth or net personal assets of RM3 million and above or its equivalent in foreign currencies; OR

o High Income Earner – The gross annual income of not less than RM180,000.00 in the preceding twelve (12) months; or jointly with one’s spouse, a gross amount total annual income of RM250,000.00 in the preceding twelve (12) months.

Can I invest more than one company at one time?

Yes, you can invest in more than one company per year but the maximum investment approvals per annum is five (5) only. The minimum amount per investment is RM5,000.00 and up to a maximum of RM500,000 investment per annum in total.

How long does it take for the angel investor to qualify for tax exemption? How much?

The investors must hold shares in the invested company for a period of two years prior to claiming the exemption. If the shares are disposed before the two years, the investment will be considered void for the tax incentive purposes.

The investment is qualified for tax exemption on the third (3rd) year of his/her shareholding. For example, if an investment is made in the year 2013, the investor will be able to claim for tax exemption when he or she files for their tax returns in the year 2015.

The amount qualified for exemption is equivalent to the value of the investment made to the investee company. The aggregate income should comprise from all sources including business income for the basis period of year assessment.

Aside from cash, can I make in-kind investments?

No. All investments must be made in cash.

How long is the investor’s accreditation period?

Angel investor’s accreditation period is valid for two (2) years. However, it can be renewed if required.

What if I am not accredited by MBAN? Am I still qualified to invest?

In order for the investors to qualify for the tax exemption, he/she must obtained accreditation from MBAN before making any sort of investments to the investee companies. If the investors did not obtain the accreditation from MBAN, the investors will not enjoy the tax exemption for any investment that he/she has made.

About Investment

What is the investment eligibility criteria?

Once you are an accredited business angel, you may begin your investment and must comply to the following investment eligibility criteria:
 Investment must be made into a qualified investee companies/start-ups;
 Must not be an immediate family member i.e. spouses, children, parent and grandparent;
 Shall be for the sole purpose of financing the activities as approved by MoF under the focus area of investment;
 Must hold the investment for a period of two (2) years prior to claiming the exemption;
 The investment made is not disposed of within two (2) years from the date the investment is made;
 The angel investor must not hold more than thirty (30) percent of the total equity of the investee company upon the first investment in that company;
 Minimum amount of RM5,000.00 per investment and up to a maximum of RM500,000.00 investment per annum in total;
 Shall be a maximum of five (5) investment approvals per annum with a maximum of RM500,000 per annum, cumulatively;
 Investments made are to be paid in cash and in full and not in-kind;
 New shares issued and reflected in the Shareholders’ Agreement;
 The shares issued to the angel investors must be in the form of ordinary shares only.

When is the investment’s qualifying period?

The angel tax incentive is open for qualifying investments made from 1 January 2013 to 31 December 2017. The qualified investment must be made by qualified investors into qualified investee companies. The investment made must be approved and endorsed by the Ministry of Finance.

When does the two-year holding period for the investment begins?

It starts on the date the fresh cash injection is made into the company.

What happens if the investment gone wrong halfway through the investment period?

The risks are to be borne by both the investors and the investee company. However, the tax exemption is still applicable for the investors on the 3rd year of his/her shareholding.

What is the maximum share percentage in all investment in one (1) investee company?

The maximum share percentage in all investment is thirty (30) percent of the total equity of the investee company.

What is the minimum and maximum amount for each investment?

The minimum investment amount is RM5,000.00 each up to a maximum of RM500,000.00 per annum in total.

Is there any post-investment condition?

Yes, the investee company must have business activities in Malaysia for at least two (2) years after the investment is made.

http://mban.com.my

SGAN (Singapore Angel Network Pte. Ltd)

SGAN (Singapore Angel Network Pte. Ltd) is the angel investment arm of the multi-billion dollar Thakral Group of Companies, Singapore. As an entrepreneur, partnering with us will not only provide you risk capital, but will also grant immediate access to the parent Group’s network and unmatched management expertise. Often our investee companies discover synergies with other businesses simply because of the vast linkages that we provide. Through this door-opening and practical mentoring approach, we strive to maintain long-term relationships with our portfolio companies.

The four generations of the Thakral family have always promoted and embodied entrepreneurship, a trait that can be seen in the Group’s remarkable growth story. The Thakral group started as a store in Thailand in 1905 and today operates in 36 countries with over 20,000 employees. The group’s operational breadth covers a wide range of activities from distribution and retail of Consumer Electronics, Computers & Peripherals, IT services, Real Estate Development, Hospitality, Logistics, Manufacturing of Yarn, export and retail of branded garments and accessories.

SGAN was born out a desire to promote this culture of entrepreneurship and to support the growing startup ecosystem in different countries. Our Chairman, Mr. Karan Singh Thakral has over four decades of experience running various industries across multiple geographies. The team at SGAN creatively utilizes his business acumen and guidance to invest and provide mentorship to startups all over the world.

Our Investment Vision

SGAN is generally an angel investment vehicle although there have been instances when we have entered at later stage in a startup’s financing life cycle. For companies that align with our vision, we provide early stage capital and are open to participating in follow-on rounds, especially in situations where we can add more than just monetary value. As a company, we prefer to be industry agnostic i.e. we do not align to just a specific sector and have invested in businesses across various industries and countries.

www.sgan.sg

AIPO Angel Investors Club

Association of Intellectual Property Entrepreneurs and Organisations Malaysia (AIPO)

What is AIPO Angel Investors Club?

AIPO Angel Investors Club (AIC) facilitates the introduction of entrepreneurs to potential investors through presentations and other mechanisms. AIC consists of individual angel investors interested in financing privately held intellectual property based companies or ventures typically in an early stage of development. AIC hope to improve the possibilities of private persons to invest in unlisted potential high growth intellectual property based ventures.

AIC is focused on potential investments in the intellectual property based enterprises. Potential members must have prior experience in the intellectual property fields or a strong desire, willingness, and capability to learn substantive components of the intellectual property industry.

Angel Investors
A high-net-worth individual or a group who makes direct investments of personal funds into a venture, typically early stage businesses.

Entrepreneurs
An individual or a company looking for angel investors and venture capitalists to find the start-up capital or expansion funding.

PIKOM Angels Chapter

Angel Chapter was formerly established in 2011.

Mission
To accelerate innovation in the ICT industry by providing capital and industry wisdom

Vision
To be the largest ICT and financial angels network that inspire, nurture and support innovative ICT ideas and initiatives in Malaysia

PAC ICT Members
ICT entrepreneurs, established ICT senior professionals

PAC Financial Members
Successful entrepreneurs, established senior business executives, retired top government officers, established investors, venture capitalists. Target 100 members from both categories

www.pikom.org.my