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Key drivers of venture capital in Malaysia: a study of investor perspectives

Sulaiman, Nurhayati and Mohdali, Raihana and Mohd Ali, Nor Adura (2025) Key drivers of venture capital in Malaysia: a study of investor perspectives. International Journal of Research and Innovation in Social Science (IJRISS), 8 (12). pp. 2511-2521. ISSN 2454-6186

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Abstract

Venture capital (VC) is essential for the growth of technology-based startups, but Malaysia’s venture capital sector is still developing and struggling to meet the needs of local startups. Malaysia has not been able to attract significant global private capital unlike Singapore and Indonesia. This study aims to identify the key enablers in attracting venture capital to invest in Malaysia and provide recommendations to boost the domestic venture capital sector from the venture capitalists’ viewpoint. Using interviews with five experienced Malaysian venture capitals as a research method, data was analysed employing thematic analysis. It is found that while Malaysia’s venture capital enablers align with global practices, factors like exit strategies, taxation, and technology adoption are less critical in the local context. The recommendations focus on two critical areas which are enhancing startup market readiness and strengthening the government’s role in the sector. This research offers valuable insights for startups by clarifying the key criteria prioritised by venture capitalists. With this understanding, startups can better tailor their strategies to secure the fund and resources from venture capital. The findings of this also contribute to academic insights on Malaysia’s venture capital landscape.

Item Type: Article (Journal)
Additional Information: 3586/119204
Uncontrolled Keywords: Venture Capital, Startups, Investment Enabler, Technology Startups, Malaysia
Subjects: H Social Sciences > HG Finance > HG179 Personal finance
H Social Sciences > HG Finance > HG201 Money
H Social Sciences > HG Finance > HG201 Money

H Social Sciences > HG Finance > HG4001 Financial management. Business finance. Corporation finance.
H Social Sciences > HG Finance > HG4501 Stocks, investment, speculation
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Centre for Languages and Pre-University Academic Development (CELPAD) > English Language Division
Centre for Languages and Pre-University Academic Development (CELPAD)
Depositing User: Mrs NOR ADURA MOHD ALI
Date Deposited: 14 Feb 2025 16:39
Last Modified: 14 Feb 2025 16:41
URI: http://irep.iium.edu.my/id/eprint/119204

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