Golden Gate commits $18m to Malaysia

The capital will be supplied from the firm's third Southeast Asia fund, which closed earlier this year at $100 million. About one-quarter of Fund II, which raised $60 million in 2016, has been deployed in Malaysia.

Golden Gate highlighted advantages in Malaysia's mix of ethnic and cultural influences, which it said provided a superior laboratory for company creation and scaling across Asia. The VC also described the country as having the highest rates for IPOs and digital penetration in Southeast Asia.

"Malaysia's rising middle class and business sectors are full of tech-savvy, mobile-savvy users who create demand for cutting-edge IT products and services," Vinnie Lauria, a managing partner at Golden Gate, said in a statement. "Malaysia's new government, after winning the historic elections this year, is another positive. People are now feeling more optimistic and that sentiment is extending to the business sphere."

Malaysia's investment industry has experienced a period of significant turbulence in recent years due to an ongoing investigation into the misuse of a government program known as the 1Malaysia Development (1MDB) fund. The scandal has already seen Najib Razak, the former prime minister, arrested on charges of embezzling billions of dollars. Najib's Barisan Nasional party, which was defeated earlier this year, had held power in the country since 1957.

VCs have expressed confidence in the new government's policy reform and anti-corruption efforts as well as a range of economic drivers including an improving talent pool and regional logistical advantages. Other local advantages are said to include a population that is large enough for businesses to gain critical mass but small enough to consistently encourage overseas expansion, as well as seamless access to the business infrastructure of Singapore and strong language skills.

Established in 2011, Golden Gate makes early-stage investments across Southeast Asia with a focus on internet and mobile technologies. Its Malaysian portfolio includes travel services company GoQuo, home-repair marketplace provider ServisHero, and nursing care platform operator Homage. Earlier this year, the firm joined an $85 million round for Carousell, a flea market app based in Singapore with a strong operational presence in Malaysia.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Southeast Asia
• Technology
• Early-stage
• GPs
• Malaysia
• Golden Gate Ventures
• Venture