Fundraising today favors the financially robust and capital efficient startups A key principle of Soonicorn Collective is about giving back to strengthen ecosystem “No more fund and flip,” quipped Dr Sivapalan Vivekarajah (pic), Chairman & Senior Partner of Soonicorn Collective & ScaleUp Malaysia, at his presentation on 23 April at the KL20 Summit.
KL20: Dr V Sivapalan on changing the startup narrative, building enduring companies, and nation buildingFundraising today favors the financially robust and capital efficient startups, Chairman & Senior Partner of Soonicorn Collective & ScaleUp Malaysia, at his presentation on 23 April at the KL20 Summit. It was a stark reality check for founders.
But there is one problem with this. “This narrative is fraud,” he said, elaborating that there aren't many companies within Malaysia or even among its neighboring countries that have done this successfully. Plus, most businesses know that M&A fail most of the time, so hardly anyone in Asia buys this narrative.
Even in the US, where many companies have very strong balance sheets and very high profits, getting acquired isn't common., showed that even in the US, where we are led to believe that startup acquisitions happen all the time, significant M&A activity only happened in seven quarters between the 2016 to 2023 period. In every other quarter there was very little M&A activity.
Rejecting the raise and flip game, Sivapalan instead suggested founders consider the IPO route, pointing out that some of the world’s top tech companies took this route. This is the route to building a lasting business, he said.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Going beyond unicorns: How KL20 aims to turn Malaysia into a top regional startup hubKUALA LUMPUR, April 22 — Despite several initiatives and milestones by the government to spur the local startup scene, online used car trading platform Carsome remains the...
Read more »
KL20 Summit 2024 to attract high-quality investmentsIt was a common scam that ended with an uncommon outcome, tragically in an Ohio driveway.
Read more »
Sidang kemuncak kl20 2024 sasar tarik pelaburan berkualiti tinggiKUALA LUMPUR: Sidang Kemuncak KL20 2024 dirangka secara strategik untuk memperkenalkan pembaharuan ketara yang bertujuan menarik pelaburan berkualiti ...
Read more »
KL20 Summit: Malaysia making great strides in development of its smart cities, says MDEC CEOKUALA LUMPUR, April 22 — Malaysia is making significant strides in the development of its smart cities, thanks to a concerted effort from the government to strengthen essential...
Read more »
KL20 Summit 2024 to attract high-quality investmentsKuala Lumpur: The KL20 Summit 2024 is strategically designed to introduce significant reforms, aimed at attracting high-quality, high-value investments from across the globe, while concurrently empowering local entrepreneurs to go global and seize emerging opportunities.
Read more »
KL20 Summit cements govt’s commitment to attract global unicornsKUALA LUMPUR: The two-day inaugural KL20 Summit 2024, which commenced yesterday, witnessed the Malaysian government reaffirming its commitment to attr...
Read more »