Penjana Kapital launches RFP for US$290mil Dana Penjana Nasional fund

• 6 fund managers to be chosen, investing in four growth stages
• Prior track record required, demonstrate fundraising abilities

On Fri, Sept 11, Penjana Kapital Sdn Bhd released a Request for Proposal (RFP) process for the Dana Penjana Nasional fund of funds programme, to select venture capital fund managers.

Recently incorporated, in July, by Ministry of Finance, Penjana will be managing the process of selecting the six investing parties that will be responsible for investing in promising Malaysian startups as part of government efforts to support the growth of Malaysia’s digital economy.

According to Penjana, applicants must demonstrate, amongst others, extensive knowledge of the tech ecosystem (including Malaysia), proper investment strategy and process, proposed talent development and knowledge transfer programme to be carried out. Applicants are expected to have a track record of current/previous funds as well as fundraising capabilities. The proposals must demonstrate how they can deliver tangible benefits to the Malaysian economy.

The RFP process began accepting submissions from 11 Sept 2020 with a 5pm 25^th Sept deadline for submissions.

Under the inaugural Dana Penjana Nasional fund of funds programme, Penjana Kapital and selected applicants will be allocating the US$290 million (RM1.2 billion) fund across the whole venture capital life cycle with US$145 million (RM600 million) contributed by Dana Penjana Nasional equally to the six parties on a 1 to 1 matching basis.

The funding will be invested into companies which are in the following four stages.

• Seed/Co-Creation

This fund is specifically dedicated as a startup launchpad by co-creating companies or providing seed capital to early-stage startups.

• Series A/B

Invest in post-revenue companies that have passed the ideation stage and ready to scale up.

• Growth Stage

The expansion stage for a company, after Series A/B.

• Venture Debt

Specifically dedicated fund to provide short/mid-term financing for early, mid, and late stage companies, which are usually not covered by the banks.

Interviews with shortlisted funds across different categories will be carried out to determine the final six parties picked.