Iris Fund Chairman Dato’ Wan Kamaruzaman Wan Ahmad
Malaysia’s Iris Capital Partners today announced the launch of arguably the country’s first privately led venture debt fund worth RM160 million (US$37.8 million).
The new vehicle, dubbed Iris Fund, aims to finance high-impact startups in Malaysia and the ASEAN region, regardless of sectors or funding stages.
As per a statement, Iris Fund will empower local startups to scale beyond the local market and support Asian companies to expand into the Malaysian market.
Alongside Iris Capital Partners, South Korea’s Hanwha Asset Management Co. will also co-manage the fund, marking the group’s maiden venture debt partnership in Malaysia.
“We do look for companies with comprehensive business plans and projections that have clear strategies for long-term growth prospects,” said Wan Kamaruzaman Wan Ahmad, chairman of the Iris Fund.
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Launched in 2020, Iris Capital Partners was established under Malaysia’s Dana Penjana Nasional programme, a government-backed startup investment fund worth RM600 million (~US$141.9 million). Applying the Fund of Funds (FOF) mechanism, Iris Capital brings in funds that will be matched on a 1:1 basis between government-backed Penjana Kapital and many other institutional and high net worth investors.
“This fund aims to offer more accessible financing to startups and SMEs while allowing founders to control their dilution better,” said Kimo Kim, partner of Iris Fund.
The primary beneficiaries of venture debt funds are early-stage startups with validated business models and clear market growth opportunities. This financing option often minimises shareholding dilution, enhances financial liquidity, and supports fundraising rounds throughout the region.
Startups, therefore, maintain more autonomy over their assets while still being able to access financing that will bolster their exponential growth over shorter periods.
In September, Iris Fund made its maiden investment by joining the US$22 million Series A round of Growthwell Foods, an alternative meat and seafood protein provider for F&B businesses in Singapore and ten other countries in the APAC region.
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Image Credit: Iris Fund
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