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Quest Ventures, ScaleUp Malaysia team up to invest up to US$1M in Malaysian startups

Singapore-based venture capital firm Quest Ventures officially announced a partnership with ScaleUp Malaysia to invest in and scale the growth of Malaysian startups. The deal brought in MYR4.1 million (US$1 million) in Foreign Direct Investment to develop Malaysian startups.

The programme welcomes startups that are operating on business models that “have the propensity to disrupt existing markets or have solutions that are able to navigate future challenges and take advantage of opportunities brought about by the current economic climate.”

In total, 24 companies shortlisted from the second cohort’s applications will start the programme in October, which is culminating in the presentation of their solutions in front of the Investment Committee.

As part of the partnership, the programme will invest at least US$60,250 in up to 12 of these companies.

ScaleUp Malaysia first launched its cohort in December 2019 with 20 companies. Ten of them received an investment of USD$48,283. ​

Also Read: ScaleUp Malaysia kickstarts 3-month programme with 20 companies in first cohort

Through their “Pegasus” model, the accelerator grooms startups in the growth and post-product-market fit stage, ready-to-scale up businesses with high revenue growth and increased profitability rates that attract follow-on investments.

“In this second cohort, we want to empower solutions that tap into the buy-in of the digital economy and prime them through our syllabus designed to take local companies to the global stage,” said D​r V. Sivapalan, Senior Partner of ScaleUp Malaysia.

Earlier this year, ​Quest Ventures announced the first close of its venture capital fund named Asia Fund II after getting support from Singapore’s Pavilion Capital, ​which is a subsidiary of Singapore state investment firm Temasek Holdings Pte Ltd. QazTech Ventures, which is a subsidiary of Kazakhstan state investment institution Baiterek National Managing Holding JSC, also pitched in.

The fund will be used to further expand and strengthen its presence within Southeast and Emerging Asia.

Applications for cohort 2 officially opens on September 8. Participants must be registered as a Malaysian company and will be shortlisted based on four key criteria: Revenue generation, ability to demonstrate product-market fit, having the ​potential of highly scalable products or service, and the possibility of global expansion.

Image Credit: ScaleUp Malaysia

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