Venture Capital: VCs weigh their options for Jelawang’s second EMP cohort

Tuesday 22 Sep 2026

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This article first appeared in Wealth, The Edge Malaysia Weekly on February 23, 2026 - March 1, 2026

A number of venture capital (VC) firms are deliberately pacing their applications for Jelawang Capital Sdn Bhd’s second Emerging Fund Managers’ Programme (EMP), as the move to a year-round submission process has eased the urgency seen during last year’s application rush.

Factors in play include the capital deployment pace and rigorous due diligence process. VC firms are weighing the benefits against the time and resources required for the application.

Wealth reached out to some industry players to get their take on the matter. They are 1337 Ventures, Hartamodal Sdn Bhd, RHL Ventures, NEXEA Ventures, Hasan VC, ScaleUp Malaysia Accelerator and Artem Ventures.

1337 Ventures, a Malaysian start-up accelerator founded in 2012 by Bikesh Lakhmichand, is seen as a potential applicant for the EMP this year due to its track record in early-stage investing.

Better-known companies under the firm’s portfolio are insurance technology start-up Ouch Free Sdn Bhd (Ouch!), as well as child-safe digital financial management platform operator Debt Circles Sdn Bhd (Vircle).

“When our most recent fund was launched, we made a conscious decision to prioritise speed of deployment.” - Bikesh, 1337 Ventures

Bikesh says, however, that the firm has not applied for the EMP since its inception as it prioritises the speed of capital deployment.

“When our most recent fund was launched, we made a conscious decision to prioritise speed of deployment. As an early-stage fund that writes the first cheque, being able to invest immediately matters more than waiting through a lengthy application and approval process,” he says.

Hartamodal Sdn Bhd, the VC arm of boutique asset management firm Tradeview Capital Sdn Bhd, is weighing its options after making it to the final stages last year, according to its executive director Tan Cheng Wen.

“Reflecting on our experience applying last year — it took a lot of time and effort. Hence, if we do decide to apply this year, we want to make sure that Hartamodal has a better chance [of securing funding] to ensure that it is a meaningful endeavour,” he says.

Dana Impian — Hartamodal’s maiden fund — is aiming for a first close by the end of this year. The fund will be investing 70% in micro, small and medium enterprises (MSMEs) and 30% in start-ups.

Sivapalan Vivekarajah, senior partner and co-founder of ScaleUp Malaysia Accelerator, is another who is considering an application, though details on which vehicle he will use and how the fund management company will be structured remain undecided.

On the flip side, NEXEA Ventures, which applied last year but did not make the cut, will be applying again this year. Its managing partner Justin Lim says the firm has made changes based on Jelawang’s recommendations to strengthen its application.

If selected, the firm will deploy funds into its NEXEA Early Stage Fund I, which focuses on early-stage start-ups either headquartered in Malaysia or derive most of their business from the country.

“Hasan VC’s focus on the halal economy holds strategic value for Malaysia.” - Umar Munshi, Hasan VC

The fund completed its first close last December and is targeting a final close in June this year. Its better-known investee companies include Lapasar Sdn Bhd, Doople Tech Sdn Bhd and Parkit Solutions Sdn Bhd.

“Our differentiating factor is how closely intertwined our ecosystem is with our investments. Start-ups backed by us and brought into our network receive unparalleled support,” says Lim.

Another firm that is applying is Hasan VC, which focuses on impact investing and the halal economy. Managing partner Umar Munshi says the firm had plans to apply last year but ended up not doing so.

“Our differentiating factor is how closely intertwined our ecosystem is with our investments.” - Lim, NEXEA Ventures

He says its focus on the halal economy holds particular strategic value for Malaysia, given the country’s positioning as a global hub for Islamic finance and the halal industry.

Hasan VC operates with a global community of roughly 300 founders and angel investors, providing portfolio companies with access to co-investment opportunities, industry expertise and operational support beyond capital.

Portfolio companies include Xentri, an AI-powered asset inspection company, and GoBarakah, a digital voucher platform that enables end-to-end traceability for clients.

The firm also specialises in early-stage investments, positioning itself as a feeder to other investors and potential acquirers such as traditional family businesses and corporates seeking small to mid-sized acquisitions.

EMP’s second cohort comes with some changes

Jelawang Capital Sdn Bhd — which channels investments into venture capital fund managers under the Emerging Fund Managers’ Programme (EMP) — has introduced several refinements for the second cohort.

First is a shift from a fixed application deadline to year-round submissions, which is designed to broaden access for emerging Malaysian fund managers.

It also introduced greater flexibility in other areas, including the amount of funds applicants need to raise in proportion to their targeted fund size.

Last year, applicants had to raise at least 20% of their targeted fund size before applying to the EMP. The criteria required a minimum fund size of RM60 million, with at least 20% of that amount (RM12 million) already raised prior to submission.

This year, the applicants are still encouraged to secure at least 20% in hard commitments from external limited partners to strengthen their application, but this threshold is no longer mandatory. The minimum fund size for pre-seed stage strategies has also been lowered to RM40 million.

Other criteria remain unchanged. The EMP is open to general partners raising their first, second or third fund, with at least 30% shareholding by a Malaysian key person.

Fund managers must have at least five years’ experience in investments or entrepreneurship, and funds must employ at least two full-time Malaysian investment professionals beyond the partners.

The EMP provides up to RM50 million or up to 30% of the fund size per fund, whichever is lower.

First cohort has started to make investments, but not all

Two of the three successful applicants of the first EMP have made a combined 12 investments to date while the remaining one — First Move — has yet to obtain the necessary licence and deploy any funds from Jelawang Capital.

First Move has not yet called capital from Jelawang as the firm is in the midst of fund setup and its venture capital management company registration is still in progress, according to partner Audra Pakalnyte.

Meanwhile, Kairous Capital and Vynn Capital have made a combined 12 investments to date.

Kairous Capital has made six investments and deployed about 37% of its fund, with plans to deploy 70% by the end of 2026, says managing partner Joseph Lee.

The investments include FastCo Pte Ltd, ORA, PangoCDP, Coolmate, EurewaX Pte Ltd and Mantayay Global Holdings Pte Ltd.

“Sector-wise, we remain focused on mobility, supply-chain resilience, industrial automation, energy-adjacent technologies and enabling infrastructure.” - Chua, Vynn Capital

According to Lee, FastCo operates in the blue-collar workforce ecosystem that connects employers and jobseekers; ORA is a direct-to-patient healthcare platform; and Pango is a provider of customer data platforms.

He adds that Coolmate is a direct-to-consumer fashion brand; EurewaX is a cross-border payment infrastructure company; and Mantayay is building a creator-led media company in Malaysia.

Jelawang’s investment is in Kairous Asia Venture Fund II, the firm’s second venture capital fund, which focuses solely on Southeast Asia.

The firm is targeting an internal rate of return of above 25% for the fund with a concentrated portfolio of 10 to 12 investments. Typical initial investments range from US$2 million to US$3 million, and it has the capacity to deploy an additional US$2 million in follow-on funding as companies grow and raise subsequent rounds, says Lee.

“We have been actively covering Malaysia, Vietnam and Singapore, which collectively will represent about 80% of our portfolio allocation.

“We are currently also actively looking into the Indonesia market to increase our exposure and capture emerging opportunities in this high-growth economy,” he adds.

“We are currently actively looking into the Indonesia market to increase our exposure and capture emerging opportunities in this high-growth economy.” - Lee, Kairous Capital

Vynn Capital has made six investments in Southeast Asia, with one more on the way. Jelawang has joined as a limited partner in Vynn Capital Progression Fund.

The investments are in DF Automation and Robotics Sdn Bhd, WYZauto, MediSun Energy, Hertzwell Pte Ltd, Blitz Electric and ServAuto.

Its founding managing partner Victor Chua says the firm plans to deploy funds into three to four more start-ups this year.

Vynn’s typical initial investment ranges from US$500,000 to US$1.5 million, focusing on seed to Series A stage companies.

“Sector-wise, we remain focused on mobility, supply-chain resilience, industrial automation, energy-adjacent technologies and enabling infrastructure.

“We are also increasingly interested in start-ups that sit one layer deeper in the value chain, providing critical tools or platforms that power larger ecosystems,” he says.

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