Finexus Invited NEXEA Venture’s Senior Investment Associate at Finexus Start-Up Event

article 7 main picture

We started the year with a funding talk by Sid Fong from NEXEA Ventures at our MyXaaS Innovation Centre in Cyberjaya, attracting over 60 start-up founders.

article 7 picture 1

Sid Fong provided insights on how investors evaluate start-ups before deciding to invest. Citing Securities Commission Malaysia, he shared that at the end of 2022, RM5.37 billion VC funds were committed in Malaysia, with Growth Start-ups leading at 48%, followed by Early-Stage Start-ups at 37%, Start-ups at 5%, and Seed at 11%.

article 7 picture 2

The valuation methods used by investors vary by stages as follow:

  • Early Start-ups are evaluated based on Floor Valuation encompassing the risks versus opportunities, and market conditions such as Supply and Demand, Cost, etc.
  • Growth Start-ups are evaluated based on Valuation Multipliers, with the extra variable of traction, shown by Gross Merchandise Value / Gross Transaction Value, Revenue, Gross Profit, etc.
  • Mature Start-ups are evaluated based on Profit Multipliers, shown by its P/E Ratio etc, much like a mature company.
article 7 picture 3

Investors who invest on Seeds face a higher risk but exponential profit returns. Investors who invest on Growth Start-ups, on the other hand, face a lower risk with lower profit returns. Hence, depending on the risk and return appetite, an investor may choose to come in at an earlier or later stage.

And this is just a tip of an iceberg from what NEXEA shared. Join us in our next event. Our guests just need to take a Putrajaya line train to our Finexus Cyberjaya Utara MRT Station, and we will have our very own Finexus shuttle to send you to our MyXaaS Innovation Centre.