In my post last week, I wrote about the highlights of this year’s regulatory updates. This time around, this article will focus more on several notable news in the funding space, especially by local institutions that may be interesting for startups. 

Khazanah is Malaysia’s sovereign wealth fund responsible for managing and preserving the nation’s wealth. It is also in charge of making “strategic investments” for the country. In 2021, Khazanah announced the Dana Impak fund (impact fund), an RM6 billion (US$1.2 billion) fund to be deployed over five years in six areas ranging from digital society, health, education, social mobility, food and energy security to climate-related startups. 

In March, Khazanah announced its partnerships with two global VCs, 500 Global and Gobi Partners, to get more investments into Malaysian startups. 

Note that Khazanah as a fund also invests in startups, usually in larger ticket sizes. This year saw several startups, notably insurtech startup PolicyStreet as its lead investor in the RM67 million (US$15.3 million) and agritech startup BoomGrow via Khazanah’s backed Gobi Dana Impak Ventures (GDIV) fund for an undisclosed sum.

More institutional funding in the startup ecosystem?

In September, Kumpulan Wang Persaraan (KWAP) (‘Retirement Fund (Incorporated)’, a public pension fund for civil servants, announced an RM500 million (US$107 million) Dana Perintis (‘pioneer fund’).

Also Read: Cyberwatch 2024: A startup’s guide to a secure future

The fund will be deployed by KWAP directly in direct investment into startups and via ‘fund on the fund’ to identified VCs and accelerators within the next “18 to 24 months”. In 2017, KWAP invested in Uber on its Series G round for the sum of RM170 million (US$30 million). KWAP is one of the several government-linked investment companies in the country. 

Consolidation of the government’s funding agencies under Khazanah

The prime minister announced this year that two government funding agencies, Penjana Kapital and Mavcap, will now be placed under Khazanah’s purview. To summarise, both of these entities invest in local VC fund managers via the ‘fund of fund’ structure. Fund managers may be keen to hear updates in the coming months, perhaps on its new funding direction.

In a World Bank study on Malaysia’s funding ecosystem, which I co-authored in 2022, one of the policy recommendations that we’ve suggested to address the funding gap was for the government to act as the anchor investor to crowd in more private capital into startups. 

More corporate ventures and “innovation centres” via the Future Malaysia Programme

I anticipate more companies embarking on new corporate venture capital (CVC) and “innovation centres” activities, especially involving publicly listed companies. 

To date, CelcomDigi and Sime Darby Plantations, both Khazanah’s portfolio companies, have announced their own type of “innovation centres” to promote innovation and entrepreneurship together with Plug and Play APAC, a global innovation platform. 

Also Read: A year in review: 2023 regulatory updates impacting startups in Malaysia

Another new entrant in the ecosystem is Antler, a global VC fund that may also lead to new startup creation and new deal flow. The news reported that Antler had completed its first cohort and is now inviting aspiring founders to apply for the second cohort. 

These partnerships came from Khazanah’s “Future Malaysia Programme”, an RM180 million (US$38 million) initiative by Khazanah to partner with local and foreign ecosystem enablers to grow the startup ecosystem. 

Securities Commission of Malaysia via Capital Markets Malaysia, its affiliate arm, is also actively promoting more publicly listed companies to get involved in corporate venture capital programmes. So, we may hear more news from the corporate sector in the coming months.

These initiatives may likely increase the number of new startups in the coming months in the ecosystem. The accelerator and incubator may also increase the chances for the startups to survive and get funding as the founders get access to experts and mentors in the programme.

In the recent article, I wrote about the regulatory updates, including the extension of the current tax incentives for angels and VC funds and additional funding in the equity crowdfunding and peer-to-peer (P2P) financing space. These efforts may help in ensuring continuity to get more private capital in the ecosystem.

As always, the devil is in the execution. Ease of doing business is a major issue that policymakers need to address as we strive to create a more vibrant funding landscape for Malaysia. As a startup lawyer who regularly deals with the ecosystem, I am hopeful to see more Malaysian startups get funded in 2024. 

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In the ever-evolving landscape of cybersecurity, businesses are confronted with a dynamic array of threats that demand more sophisticated defence mechanisms. While traditional antivirus software has long been a stalwart guardian against known malware, the growing complexity of cyber threats necessitates a shift towards a more comprehensive solution — endpoint protection.

In this article, we will delve into the differences between antivirus and endpoint protection, outlining when and why businesses should consider upgrading to the latter.

Coverage

Traditionally, antivirus solutions focus on individual files or the entire system. While endpoint protection encompasses the entire endpoint environment, this solution extends coverage to include a broader range of security measures.

Adaptability

Antivirus relies on predefined and known signatures. Antivirus solutions will struggle with newer, unknown threats and are generally more reactive in nature. Meanwhile, endpoint protection incorporates advanced features like behavioural analysis, heuristics, sandboxing, and machine learning, making it more proactive and adaptable to emerging threats.

Management and control

Antivirus is often standalone with limited centralised management capabilities. Endpoint Protection is designed for centralised management, enabling administrators to monitor and control security measures across multiple devices within an organisation.

Also Read: Two decades of digital defence: Why cybersecurity must remain a top concern for everyone

When should businesses consider upgrading?

As businesses grow and face more sophisticated threats, the scalability and advanced features of endpoint protection become crucial for effective defence.

Here are a few questions businesses should ask themselves:

• Am I dealing with more than just known malware? Have we encountered emerging and unknown threats like targeted phishing attacks, ransomware, and Advanced Persistent Threats (APTs)? As a benchmark, businesses with less than US$1 million in annual revenue are less likely to attract advanced attackers. Hence, they would be considered in the low-risk bracket. Businesses with US$1 million to US$10 million revenue would be considered medium risk, and any business with more than US$10 million revenue would be at high risk.
• Is my IT team struggling to keep up with security concerns? Do they require more centralised management over security control? As a benchmark, businesses with less than 10 employees would have a low priority. Businesses with 10 to 100 employees would have a medium priority, and it becomes a significant pain point for businesses with over 100 employees.
• Is my business dealing with sensitive data, intellectual property, or customer information that could be attractive to cyber threat actors?

Final thoughts

The cybersecurity landscape demands a proactive and adaptive defence strategy, making the shift from antivirus to endpoint protection a logical and imperative step for businesses as they grow.

As the threats continue to evolve, endpoint protection provides a broader set of tools and features to safeguard not only against traditional malware but also the multifaceted challenges posed by the modern cyber landscape.

By understanding the differences and recognising the need for a more comprehensive solution, businesses can fortify their defences and navigate the digital frontier with greater confidence and resilience.

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01Fintech, a growth-stage private equity firm founded by a former Ant-Group executive, has invested US$20 million in Validus, a small-and-medium-enterprises (SME) supply-chain financing platform with operations in Indonesia, Singapore, Thailand and Vietnam.

The investment will enable Validus to accelerate its expansion plans in fast-growing markets like Indonesia and enhance its technology innovation.

Also Read: Validus, TTC Group, Do Ventures form JV to boost SME lending in Vietnam

Founded in 2015, Validus drives financial inclusion and prosperity for small businesses by leveraging data and AI to drive growth financing to the under-served SME sector. Its offerings include loans, business accounts, corporate cards, payments and expense management.

To date, Validus claims to have disbursed more than US$3 billion in loans to small businesses across Southeast Asia.

Validus is headquartered in Singapore and has a presence in Indonesia, Singapore, Thailand, and Vietnam.

Validus’s other backers are Vertex Ventures Southeast Asia and India, Vertex Growth, FMO, and several major East Asian financial institutions, including NorinChukin Bank and NongHyup Financial Group.

Southeast Asia represents a tremendous US$490 billion SME financing gap opportunity for specialised digital lenders with strong credit assessment capabilities. The Asian Development Bank estimates that SMEs make up 97 per cent (71 million) of all regional enterprises (71 million), employ 69 per cent of the labour force and contribute significantly to 42 per cent of the GDP.

Also Read: Validus teams up with Nafoods to provide business financing to farmers, distributors in Vietnam

Still, most SMEs do not have access to sufficient credit and liquidity required for their daily working capital needs. Over 60 per cent of these private enterprises cannot get loans when needed; operators and their employees are forced to live cash-in-hand, creating a bottleneck for growth.

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Biorithm, a Singapore- and US-based company developing cutting-edge solutions for personalised connected maternity care, has secured US$3.5 million in Series A funding.

The round was co-led by Adaptive Capital Partners and SEEDS Capital.

The funding will be utilised to double down on expanding the reach of Biorithm’s connected pregnancy management solutions across Southeast Asia and the US. A portion of the capital will go into R&D.

Also Read: Revolutionising Singapore’s healthcare amidst demographic shifts and economic demands

The medtech firm will use the capital to fortify its US market entry and growth strategy and pursue breakthrough research.

Biorithm aims to end preventable pregnancy complications (which result in mortality for 800 women daily) through protocol-based remote monitoring of maternal and fetal biometrics.

Its Femom technology facilitates patient monitoring, accessibility of personalised guidance, and integration of predictive analytics that help clinicians identify early signs of complications.

“There is a collapse of maternal care driven by socio-economic factors and limitation of current monitoring technologies in many regions across the world, and we are hard at work to solve this problem in partnership with the wider health ecosystems at play,” said Amrish Nair, Founder and CEO, Biorithm.

Also Read: Decoding digital preferences: A glimpse into the future of health tech ecosystem in SEA

Having completed clinical trials with healthcare institutions in Singapore and the UK, Biorithm will expand its clinical trial footprint to more priority markets. To strengthen the women’s health ecosystem, it will chart out and foster key partnerships with various stakeholders globally to improve maternal and baby health through data and personalised and accessible care.

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