Iris Capital Partners Sdn. Bhd. has launched Malaysia’s first privately led venture debt fund, the Iris Fund, which aims to finance high-impact startups from Malaysia and the Asean region. The firm is one of eight VC fund managers selected under the Dana Penjana Nasional (DPN) programme through Penjana Kapital Sdn Bhd, which is owned by the Finance Ministry.
The pioneer fund is co-managed by Hanwha Asset Management Co, making this the group’s maiden venture debt partnership in Malaysia. The size of the fund will be RM160 million and capital was contributed from Penjana Kapital and a host of institutional and high net worth investors.
Venture debt funds allow for more accessible financing options for early-stage startups with validated business models and clear market growth opportunities, including minimizing shareholding dilution, enhancing financial liquidity, and providing support for fundraising rounds throughout the region. This allows companies to maintain more autonomy over their assets while providing access to financing that will allow them to grow significantly over shorter periods of time.
“This inaugural venture represents the Group’s strong belief in the growth of the region. The fund will be the first of many partnerships with Iris Capital Partners as the Group is looking to invest more in Malaysia and Southeast Asia,” said Kimo Kim, Partner at the Iris Fund. “This fund aims to offer more accessible financing to startups and SMEs – while allowing founders to control their dilution better.”
