The Malaysian Global Creativity and Innovation Centre (MaGIC) and ScaleUp Malaysia have announced a collaboration geared at raising the volume, growth velocity and value of the local startup industry.
This collaboration marks the first of many this year that MaGIC is driving in realising Malaysia’s Digital Economy Blueprint (MyDigital) to groom 5,000 start-ups and attract two unicorns in the next five years. It serves to advance Malaysia’s position as a regional market producer for digital products and digital solution providers with start-ups as catalysts.
The collaboration aims to train and coach 20 ascendant startups and raise a minimum investment commitment of RM250,000 per company for 10 selected start-ups through investments from institutional investors. The participating startups will benefit from potential funds from financial institutions to provide matching credit lines and support from strategic corporate partners for 20 potential Malaysian startups. Both organisations will also be working very closely with the startups to double their revenue in the coming year.
“This collaboration amongst ecosystem partners looks at providing more ready access to investors and funding for startups that are ready to scale within Malaysia and the region,” said MaGIC Chief Executive Officer Dzuleira Abu Bakar.
“Through this, we groom the startups from bootcamp (early stage) to Global Accelerator Programme (GAP) (mid to late stage) and onwards to ScaleUp Malaysia (growth stage) with committed funds for investment,” explained Dzuleira.
“We hope to funnel MaGIC alumni startups to ScaleUp Malaysia and likewise, to have ScaleUp Malaysia alumni benefit from MaGIC’s programmes. By value-adding to the startups’ growth development cycle, we are effectively raising the value and impact the start-ups in turn, delivering back into the ecosystem,” she added.
“Together, MaGIC with ScaleUp Malaysia can support startups who will be at the forefront of the digital transformation that is occurring around the world through this pandemic, while positioning them for exponential growth. More startups will now be able to have access to the best technical and tactical support in the nation.,” said Aaron Sarma, Co-Founder & General Partner of ScaleUp Malaysia.
This collaboration strengthens MaGIC’s various start-up capacity building and market readiness programmes such as bootcamp, GAP and National Technology and Innovation Sandbox (NTIS). More importantly, this partnership offers advanced mentorship for ascendant start-ups coupled with a guaranteed investment for start-ups. “MaGIC is already the ‘go-to’ agency that takes any Malaysian start-up from inception to commercialisation of innovative products and solutions – and this enhances the suite of offering,” added Dzuleira.
ScaleUp Malaysia’s partners and founders are ecosystem leaders who understand start-ups, technology and investments. The investment partners involved in this collaboration are experienced regional and local venture capital firms which will enable our start-ups to scale regionally while acting as potential investors for follow-on funding.
ScaleUp Malaysia cohort companies joining the programme will be given priority to participate in MaGIC programmes and initiatives – including the NTIS, the Global Market-Fit Programme (GMP) and MyStartup Hub, which cater to late stage start-ups and others.