GEORGE TOWN: Technology start-ups are urged to tap into the RM100 million Technology Start-ups Funding Relief Facility (TSFRF), for working capital and expansion.
"Tech start-ups that could show their competitive edge and growth potentials are encouraged to apply for the TSFRF, irrespective of the sectors they are involved in" said special investment officer to the Penang chief minister, Datuk Seri Lee Kah Choon.
TSFRF, by Malaysia Debt Ventures (MDV) aims to provide immediate and targeted cash flow support to technology start-ups.
Lee, who is also InvestPenang director, was speaking during a virtual dialogue yesterday, hosted by InvestPenang and MDV, with 30 technology start-ups from the northern region.
Also in the webinar was MDV chief executive officer, Nizam Mohamed Nadzri.
Nizam highlighted the uniqueness of TSFRF which includes among others shorter due diligence and credit assessment processes and minimal legal documentation requirements.
"In addition, tech start-ups under TSFRF do not need to bear any additional fees and charges for the facility, and more importantly, no hard collateral is needed.
"As part of our risk mitigation measures, applicants are only required to provide personal guarantees and debentures," Nizam said.
He added that while the key intention of TSFRF is to support technology start-ups that are impacted by the current adverse economic conditions and funding disruptions, MDV also welcomes high potential start-ups looking for expansion to apply for this fund, which offers an attractive financing rate of 3.50 per cent, per annum and up to five years of financing tenure.
"Due to the shifting of technology, new high growth industries have emerged and this trend will continue to accelerate as the Covid-19 pandemic has created a new normal as to how people live, work and learn."
TSFRF will be available for applications beginning May 18 till May 31.
Subsequent application windows will be opened until the entire RM100 million fund is fully committed.
TSFRF was developed following a series of engagement sessions with technology start-ups, venture capital firms, MDV's stakeholders which include the Ministry of Science, Technology and Innovation and the Ministry of Finance, as well as key enablers in the technology sector namely Cradle Fund Sdn Bhd, Malaysia Venture Capital Management Berhad, the Malaysian Global Innovation and Creativity Centre and Malaysia Digital Economy Corporation.
Key features, criteria and the application process of TSFRF are available at www.mdv.com.my.