There are several things that founders should know before raising funds for their startup. 1. Understand the different types of funding available. Selling your company’s shares in exchange for money is just one usual way of raising funds. There are various ways to raise capital, including debt financing, equity financing, or even crowdfunding (see Oxwhite’s…
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A guide to secondary market for startups in Malaysia
What is a secondary market? How does it work when buying and selling crowdfunding shares? What are the risks involved and why is it such an important feature especially for investors?
What is a seed round for a startup in Malaysia?
How is a seed round different from a series A round in the context of a Malaysian fundraising landscape?
Do I need to give my investor a board seat in my startup?
No, you don’t have to give a board seat to your new investor if you don’t want to and there are alternatives that you can use to avoid giving away a board seat.
My startup cofounder ghosted on me. What can I do?
After months of searching for a CTO for your startup, you’ve finally found your luck when you found a CTO candidate that has agreed to join your startup. He loves what you’re trying to solve and agreed to build the MVP needed and help you fundraise too. After back and forth of meetups, you agreed…
Yes, you can use the SAFE agreement for your Malaysian startup
As a startup and venture lawyer, it is common for a startup founder in Malaysia to ask me whether it is legal to issue a Simple Agreement for Future Equity (SAFE) round for his Malaysian company. The answer is yes. You can raise funds using a SAFE round in Malaysia. But the usual standard template…
I co-authored a World Bank report on startup financing in Malaysia
During the early lockdown month last year, I was surprised when I received an email from a World Bank researcher asking to schedule a call with me to ask a few questions on the state of startup financing in Malaysia. I found out afterwards that both of the researchers came across one of my webinars…
How to issue sweat equity for your start-ups in Malaysia
Getting a start-up off the ground isn’t easy. It is also hard to keep a good team around and secure new talents especially when you’re bootstrapped with limited cash. Sweat equity shares are a powerful tool for helping you retain talents, and even get others like advisors and mentors in the ecosystem or industry that…
New rules for ‘buy now pay later’ in Malaysia soon?
Earlier this year, I was asked to comment on the ‘buy now pay later’ (BNPL) operators earlier this year by The Edge Malaysia. What is ‘buy now pay later’? To recap, a BNPL is a service that allows consumers to buy things at 0% interest on an equal instalment basis. Currently, BNPL services are not…
What Malaysian startups need to know about reverse vesting
Last month, I discussed vesting schedules structures for startups. This post will discuss reverse vesting and how it can save your startup from being destroyed by your co-founders.