The participant of venture capital company in Malaysia

Abstract

A successful company performance has been associated with the involvement of Venture Capital (VC) globally. This can be explained by the natural role of VC in providing the guidance and equity towards the beginning of the start-up companies. Effect of certifying role by VC such as network contacts towards the start-up and growth of the company will benefit company which been backed by VC in acquiring new resources that may enhance their business performance. The involvement of VC in decision making helps company increase the quality in formulating business strategy, business partnership and the company management team. In Malaysia, first established VC company was in 1984. However, until now, the VC industry in Malaysia is still developing as compared to other countries such as US and UK. The difficulties in obtaining resources and fund due to small size of industries have become a crucial challenge for VC companies in Malaysia to exit their investment successfully. Thus, this study objective is to review the growth of VC companies in Malaysia since the establishment by adopting a single case study by comprehensive review of newspaper, data analysis, secondary data and empirical literature. The outcome of this study will contribute to add some insight information regarding the growth of VC industry in Malaysia.