Cradle looks to angel investors
CRADLE Fund Sdn Bhd, an agency under the Finance Ministry, hopes that at least half of early-stage funding for technology companies come from private investors in five years.
Its chief executive officer, Nazrin Hassan, said currently only a mi-nimal percentage of these funding come privately with a bulk of it co-ming from the government.
He said Cradle also aims that in 10 years, angel investment will grow to a significant extent that the private sector will lead the funding for early-stage technology companies.
Nazrin said this in a press conference after the launch of the Malaysian Business Angel Network (MBAN) here yesterday by Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.
MBAN was established to encourage more angel investments and it aims to grow accredited angel investors in Malaysia through education and training.
Nazrin said Cradle will serve as an interim secretariat for MBAN, which will also monitor angel investment statistics.
"Currently, there is no organisation tracking these statistics," he said, adding that MBAN is also building linkages with Singapore, India, Hong Kong, China, Australia and New Zealand.
Nazrin said MBAN is not only looking at multi-millionaires and billionaires as potential angel investors but also those with an income of RM15,000 a month who constituted 40 per cent of the country's taxpayers.
He said prospective angel investors will be given education and training on the risks and potential returns of being an angel investor.
He said research has shown that the risks involved are reasonable when compared to the potential returns.
Overall returns are as high as 2.6 times in 3.5 years in the US and 2.2 times over a period of four years in the UK, he noted.
"Angel investors are making a difference to Malaysians. Growth in angel investments will positively impact Malaysian technology development and innovation by generating more funds to accelerate growth and increase the number of technology start-ups in Malaysia," said Nazrin.
Ahmad Husni in his speech said with tax incentives drawn up in the 2013 Budget, the government was hopeful that more people will become angel investors.
Under the plan, an angel investor who invests in a start-up would be allowed to deduct the full amount as relief.
He said currently there are four angel investment clubs in Malaysia with an estimated 150 angel investors who have invested more than RM10 million in the last two years.
Source : New Straits Times
Date : 19 December 2012
Afternoon Highlight (19/12/12/216/691)
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