Why non-profit?
ViC is established as an independent non-profit organisation. Being a non-profit means that ViC puts its mission of creating a vibrant ecosystem for angel investing first before the need to generate money itself. Any income that ViC manages to generate in the process will be channeled back into accomplishing its key mission.
The common misconception about non-profit organisations is that they should avoid generating any income at all. Like any organisation (commercial or non-profit), ViC requires financing to support its operations. If an organisation runs out of money, it ceases to operate and would therefore, fail to further its mission.
However, the difference between a commercial and non-profit organisation is that the former puts the need of generating a profit first before its mission, while the latter puts its mission ahead of making money.
Shouldn’t angel investing be profitable?
The angel investors and entrepreneurs on ViC do aim to make profits themselves. ViC just looks out for both their interests as an independent non-profit organisation.
How does the investment process work?
Currently, companies may submit their investment proposals by following the 3-step guide in Submit A Proposal. These proposals will be vetted, and those that meet our criteria will be presented to the ViC Investment Committee. The companies that have been shortlisted from this process will then be invited to pitch to our Members (angels investors). Interested Members may proceed to discuss with the companies on investment terms and due diligence. If everything goes well from here on, companies will get invested in by angels.
What companies are our angel investors looking for?
ViC focuses on two types of companies:
- Early-stage companies looking for seed funding (typically these companies are less than 3 years old)
- Small-to-medium (SME) companies looking for growth and expansion funding.
The funding amount sought by these companies can range from RM250,000 to RM2.5 million. Each angel investor may invest from RM50,000 up to RM250,000 each.
ViC is not industry or sector bias, and will consider investments in both technology and non-technology areas.
What are the costs of running ViC?
The bulk of ViC’s operating costs are marketing collateral, administrative fees and nominal salary for a fulltime manager. Currently, ViC’s Executive Director also serves as the fulltime manager.
Do the people involved in ViC get paid?
Only the fulltime manager (Executive Director) is paid a nominal salary. ViC’s Committee Members and Advisors contribute on a volunteer basis, and do not receive any compensation whatsoever from ViC. These parties, including the Executive Director, also do not receive any commission nor fees nor added compensation from any activities in ViC (e.g. investments made in companies via our platform).
How does ViC sustain itself financially?
ViC is currently sustaining itself by relying on its sponsors who provide sponsorship for its day-to-day operations. However, relying solely on sponsorship alone would limit the organisation’s long-term growth. For sustainability, it would be necessary for ViC to have other income sources.
There will also be a 3% to 5% commission for projects that have successfully received investments from ViC’s angel investors.
Any income sourced will be directly channeled back into furthering ViC’s mission and objectives.
How do angel investors join ViC?
Membership for angel investors to join ViC is exclusively by invitation. We do not charge angel investors a membership fee, but the ViC committee vets them to ensure that they are genuine angel investors.
Why are angel investors not charged a fee?
One of our key objectives is to encourage the growth of more active angel investors in Malaysia. We want our Members (angel investors) to focus on making investments in companies that are commercially viable, and thus, do not want them to be concerned about paying us fees. Moreover, angel investors can only join ViC exclusively by invitation. Our Members are all vetted before joining to ensure that they are genuine angel investors.
