KUALA LUMPUR: Khazanah Nasional Bhd has introduced the national fund-of-funds, Jelawang Capital Sdn Bhd after merging Malaysia Venture Capital Management and Penjana Kapital in July.
The launch aligns with the announcement made during Prime Minister Datuk Seri Anwar Ibrahim's 2025 Budget speech.
Jelawang Capital will be led by Bryan Lim as its chief executive officer, who is also Khazanah's head of Dana Impak.
The sovereign wealth fund said Jelawang Capital will lead two initiatives to boost Malaysia's venture capital (VC) ecosystem.
The first initiative, the Emerging Fund Managers' Program (EMP), aims to support emerging Malaysian VC fund managers in raising their initial funds, whether it be their first, second, or third.
The second, the Regional Managers' Initiative (RMI), seeks to strengthen Malaysia's startup ecosystem by forming strategic partnerships with regional VC firms.
"Both the EMP and RMI initiatives will enable the fusion of local and international expertise, perspectives and knowledge to spur a vibrant ecosystem that fuels progress that Advances Malaysia," it said.
Khazanah managing director Datuk Amirul Feisal Wan Zahir said Jelawang Capital will continue to grow Malaysian fund managers while crowding-in regional fund managers with expertise and capital.
"The venture capital industry is an important source of innovation, economic growth and job creation for the nation.
"However, based on research by Startup Genome, only 1.5 per cent of startups in the best US VC hubs enjoy meaningful financial returns on their investment i.e. a successful exit of US$50 million or more, illustrating the high inherent risk and challenges associated with this asset class.
"As such, nothing short of an all-of-nation approach will be needed for us to increase the odds of success," he added.
Amirul Feisal said while capital is a key building block to a vibrant VC ecosystem, other critical success factors include the ease of doing business, availability of talent, and deepening of technology and know-how.