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Photonics Venture Capital Sdn Bhd

Photonics Venture Capital Sdn Bhd

Background

Photonics Venture Capital Sdn Bhd (“Photonics VC”) is a venture capital management company appointed by the Malaysia Venture Capital Management Bhd (“MAVCAP”) in December 2001 to manage a venture capital fund on behalf of MAVCAP.

Under the 2001 Budget, the Malaysian Government allocated RM 500 million to establish a venture capital fund with the objective of developing the venture capital and information & communications technology (“ICT”) based industries in Malaysia. MAVCAP, a wholly owned subsidiary of the Ministry of Finance is entrusted with the venture fund of which RM 100 million has been allocated to four independent venture management companies one of which is Photonics VC to manage via an outsourcing programme.

Photonics VC, a Penang based company is leveraging on the well established electronics industry in the northern region, the management expertise and network as well as the concerted effort from the Federal and Penang State Governments to develop high value added technology based industries.

Investment Focus

Photonics, automation and advance manufacturing were chosen as the domain sectors for the fund managed by Photonics VC.

A minimum of 50% of the investment fund will be invested in the domain sectors while the balance can be invested in any non-domain sectors. Investment emphasis includes components, automation and high value added contract manufacturing with preference for those which are photonics related.

Geography Focus

Up to 70% of the fund will be Invested in Malaysia with emphasis in the northern region where MNCs and supporting industries are well established. The balance of the fund will be invested overseas.

Seed and Early Stage Investment

A minimum of 30% of the fund will be for seed or early stage investment opportunities. Seed and early stage investments involve R & D, product development and commercialization.

What is Photonics

Photonics is an area of technology associated with the generation and harnessing of light and other forms of radiant energy whose quantum unit is the photon. The photonics industry involves all light based products and services comprising display equipment (LCD), telecommunication infrastructure (fiber optics, laser pump), consumer electronics (digital camera, remote control), laser processing, storage etc.

The Team

The management team, headed by its CEO, Jerry Chin, comprises highly qualified and dedicated hands-on managers with international business experience in all facets of business from finance to operations. The management team has previously closed venture capital financing worth in excess of RM 200 million.

The management team works closely with the Investment Committee which consists of members with vast experience in the capital markets, factory operation, business development and company management.

To complement the management team and the Investment Committee, an advisory panel has been carefully selected whose members are very competent and experienced in areas of expertise including photonics, venture capital investments, electronics manufacturing, etc. The members of advisory panel include Professor Harith of University of Malaya, which has very comprehensive and advance photonics research facilities in Malaysia. Professor Harith is widely recognised as a leading authority in the photonics field.

Value Proposition

Photonics VC creates synergies among its investee companies so that they can leverage on and complement each other’s expertise and market place to grow the businesses together.

Photonics VC provides not only capital but also a range of valuable support services:

Access to government grants, subsidies and incentives including pioneer status and investment tax allowance;

Financing including access to Malaysia Debt Ventures Bhd on debt financing;

Experience in managing fund raising exercises including IPO, private placement, private debt securities;

Assistance in identifying opportunities for alliance with major corporations and in structuring these alliances;

Support in structuring joint ventures, licensing arrangement, merger and acquisition of businesses;

Strategic alliance with portfolio companies for market expansion, risk management; and

Technical support from Advisory Panels and alliances of Photonics VC.

Photonics VC is very active in working together with government agencies and associations in developing technology based industries in Malaysia including representation in MIG Photonics Group (one of the interest groups of Malaysian Industry-Government Group for High Technology (“MIGHT”) emphasising on the Photonics industry) and Collaborative Research & Resource Centre (“CRRC”), a body established in Penang to facilitate collaboration between industries and centres of excellence.