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CHAPTER 5

OTHER FINANCIAL INSTITUTIONS (NON-BANK)

OBJECTIVES
To identify the development finance institutions
in Malaysia
To discuss its role and functions
To identify the provident and pension funds in
Malaysia
To discuss functions and roles of insurance
companies in Malaysia
To identify what are the functions and roles of
other non-bank financial institutions

VENTURE CAPITAL COMPANIES

Venture capital (also known as VC or Venture) is provided as
seed funding to early-stage, high-potential, growth companies.
To put it simply, an investment firm will give money to a
growing company. The growing company will then use this
money to advertise, do research, build infrastructure, develop
products etc.
The investment firm is called a venture capital firm, and the
money that it gives is called venture capital. The venture
capital firm makes money by owning a stake in the firm it
invests in. The firms that a venture capital firm will invest in
usually have a novel technology or business model.
Venture capital investments are generally made in cash in
exchange for shares in the invested company. It is typical for
venture capital investors to identify and back companies in high
technology industries such as biotechnology and IT
(Information Technology).

VENTURE CAPITAL COMPANIES

Example:

MAVCAP

was incorporated in 2001 by the Malaysian

Government and is the nations largest venture
capital (VC) firm which focuses on investments in the
local information, communications and technology
sector (ICT).