Related Information on Startup & Entrepreneurship Ecosystem

You are here


Signs Of A Good Startup Ecosystem In Malaysia

Good Attitude

  • An enthusiastic and knowledgeable Startup is key ingredient. The right attitude, the ability to bootstrap and not too depended to grants is needed.
  • Malaysia has some notable founders and among them are a product from an accelerator programme.

Mentors and coaches

  • Knowledgeable and good network mentors and coaches are needed to assist startups.

Incubators and accelerators

  • Incubators and accelerators to provide the space, necessary programme and market access
  • In Malaysia there are 18 active MSC Malaysia Incubators and 3 Accelerators (the Founder Institute, BootstrapAccelerator Asia and 1337 Accelerator)
  • What is needed to build a solid network in Malaysia?

Know More

  • Interesting Facts & Figures
    • Malaysia has over 39,000 millionaires
    • An estimated pool of over 40,000 taxpayers earning more than RM15,000 per month whom could be considered potential angels
    • Catcha Group plans to invest US$150 million (RM450m) in online businesses in ASEAN over 5 years (starting from 2013)
    • The Star Accelerator Fund (2013) has allocated RM20 million for startups
    • US$10 million (RM30m) from Golden Gate Ventures to invest in startups in Southeast Asia (2012)

Furthermore, the availability of investors, fund managers and corporates is a boon to these dynamic young Malaysians. Malaysia’s Budget 2013 announced the Angel Tax Incentive to help tech-based startups in Malaysia to increase private funding by offering tax incentive to angel investors who have invested in these companies.

  • What is an entrepreneur?
    An entrepreneur is someone who starts a brand-new business or startup, taking on some degree of financial risk in order to get their company off the ground.

  • What is a startup?
    A startup is not a smaller version of a major corporation. A startup is a temporary organisation that is striving towards toward a business model that is scalable, repeatable and profitable.

  • What is a high growth Startup?
    High growth startup is defined as the ability to scale at an accelerated speed/scale quickly and fast within 6-12 months, normally after completing an accelerator programme/any mentoring related programme.

  • What is a startup ecosystem?
    It is a cohesive network of incubators, accelerators, funders and entrepreneur communities.

  • What is an Incubator?
    An Incubator nurtures young firms, helping them to survive and grow during the start-up period through an array of business support resources and services (i.e. affordable space, shared offices and services, hand-on management training, marketing support and often an access to some form of financing, etc.). Most incubators will instil various kinds of developmental program that helps entrepreneurs to develop their ideas into a framework. The program takes young entrepreneurs systematically from inception through to launch and beyond. For more information on MSC Malaysia Status Incubator, please click this URL.

  • What is an Accelerator?
    An Accelerator typically provides the space, necessary developmental programmes, mentoring and market access to aspiring Technopreneurs. Accelerators comprise of angel investor and serial entrepreneurs who invest time, resources and expertise to mentor start-ups to grow and provide market opportunities to scale rapidly in return for a small amount of equity. An accelerator shares some of the characteristics of incubators but with a shorter and intense incubation period to turn business ideas into prototype or products that are ready for market / commercialise able within 3 to 6 months.

  • What is the difference between an Accelerator and an Incubator?
    An accelerator would take a faster approach in ensuring that the product is commercialised. Accelerator programs cater to certain type of products and services – a new area that Malaysia is aggressively promoting to its startups.

  • Is there any Accelerator in Malaysia?
    There are three active Accelerators:
    • Founder’s Institute – Malaysia chapter
    • BootstrapAccelerator Asia
    • 1337 Accelerator

  • What is the tech area focus for a typical startup?
    Usually, typical startups’ products revolve around apps within the mobile, e-commerce, cloud and big data segments.

  • What are the Growth Stages for a typical startup?
    A startup life cycle begins with a business model based on ideas and guesses – since there are no customers and very little customer knowledge. A startup life cycle on an average requires 1.5 to 2 years to be a viable business. Basically it goes through these phases: from Ideation – Prototype – Startup – Growth – Matured.
    Terms Definition
    Ideation Have an idea
    Prototype Have an idea with readily available prototype
    Startup Have started a company with less than 1 year of experience
    Growth 1 to 3 years of experience
    Matured More than 5 years of experience


  • What are the Finance Stages for a typical startup?
    Based on a recent study, successful founders of startups are mostly bootstrapping at the early stages and not depended on funding. It is also seen that most successful startups came out from an acceleration programme. A typical financial lifecycle for a startup follows from Bootstrap – Friends and Family Round – Crowd funding – Grant – Loan – Angel Investment – Venture Capitalist – IPO.
    Terms Definition
    Bootstrap The founders fund the startup with their own money
    Friends and Family Round A small amount of money that the founders raise from friends and family as either in a loan or in exchange for equity
    Crowd funding The collective effort of individuals who network and pool their money, usually via the Internet, to support efforts initiated by other people or organizations
    Grant Non-repayable funds disbursed by one party (grant makers), often a government department, corporation, foundation or trust, to a recipient, often (but not always) a non-profit entity, educational institution, business or an individual
    Loan The borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time
    Angel Investment Money from wealthy individuals who usually invest at an early stage in the company
    Venture Capitalist Typically a larger sum than raised from angels, and often m multiple sources. Each time the company raises money, it's called a new round or 'Series'
    IPO The first sale of stock by a private company to the public
Malaysia Digital Economy Corporation

The Malaysia Digital Economy Corporation (formerly known as Multimedia Development Corporation) a unique organization established to direct and oversee MSC Malaysia, the national ICT development initiative, by advising the Malaysian Government on legislation and policies, developing industry-specific practices and setting the standards for multimedia and digital operations. MDEC is also responsible for promoting MSC Malaysia locally and globally, whilst providing strategic support to MSC Malaysia Status Companies.

More about the Malaysia Digital Economy Corporation >