- Believe Malaysia has potential to become the Silicon Valley of the East
- Catalyse creation of companies that will provide thousands of high-quality jobs
What does one do when one hits the 20th anniversary of listing their company, is a relatively young 53 year-old, and is ranked by Forbes as among the 50 richest Malaysians with an estimated net worth of US$450 million as at 2023?
For Chu Jenn Weng, founder, managing director and president of Vitrox Corporation Bhd, the answer was to renew his stated ambition, as he shared with Digital News Asia in 2014, of inspiring Malaysians to build their own world class companies and to create enough jobs for Malaysian talent that we do not need to rely on multinationals for good jobs.
Roping in his co-founders, Steven Siaw and Yeoh Shih Hoong, the trio announced on July 26 the launch of Cambrian Fund, a US$33.9 million (RM150 million) venture capital initiative managed by Singapore-based Southern Capital Group, aimed at fostering Malaysia’s next wave of Industrial 4.0 innovators.
“Twenty-four years ago, in 2000, we started ViTrox in a small bedroom with just our dreams and determination. Now, we want to support local tech startups and nurture a robust tech ecosystem in Malaysia,” said Chu.
Each of the trio have committed RM10 million to the fund with Southern Capital matching the amount. Targeting a raise RM150 million, the remaining RM90 million will be raised from other investors. The founders are casting a wide net, inviting other industry leaders and key stakeholders to join the fund’s ecosystem. “We ask our counterparts to commit to a ‘by Malaysians, for Malaysians’ philosophy,” Chu said.
With ViTrox being an automated vision inspection equipment manufacturer, it is no surprise that the fund will focus on early-stage technology companies in areas such as machine vision, artificial intelligence, and robotics.
The Cambrian Fund, named after the geological period that saw an explosion of complex life forms, aims to spark a similar burst of innovation in Malaysia’s tech landscape.
The fund’s focus aligns closely with ViTrox’s expertise in machine vision, robotics, and embedded electronics solutions for the semiconductor and electronics industries. This strategic alignment allows the fund to leverage the founders’ deep industry knowledge and networks to identify and nurture promising startups.
Catalyse creation of companies that will provide thousands of high-quality jobs
Kenneth Tan, CEO of Southern Capital, emphasised the timeliness of the initiative. “We believe that together we can play a role in establishing a new kind of venture capital fund, one that is based on knowledge, collaboration, imagination, and a desire to give back,” he said. Tan highlighted the potential for the fund to catalyse the creation of valuable companies that will provide thousands of high-quality jobs and transform livelihoods for generations to come.
The Cambrian Fund’s launch comes at a critical juncture for Malaysia’s tech industry. With the government’s recent unveiling of the National Semiconductor Strategic Plan, there’s a renewed focus on moving up the value chain in the semiconductor and related industries. The fund aims to complement these efforts by nurturing the software and design aspects of the ecosystem.
Chu emphasised the fund’s broader vision: “We believe Malaysia has the potential to become the Silicon Valley of the East. This fund is a step towards building a strong local tech cluster, specialising in machine vision, AI, and robotics.”
The fund’s strategy goes beyond mere financial investment. Drawing from their experience building ViTrox into a global leader in advanced X-ray inspection for the electrical and electronic industry, the founders plan to provide mentorship, industry connections, and strategic guidance to their portfolio companies.
Steven, a founder who is also senior executive vice president of ViTrox, highlighted the value of this hands-on approach: “Many of these entrepreneurs lack industry experience or exposure. We can help close the gap, help them accelerate this process, and avoid unnecessary mistakes which can be costly.”
While the fund’s primary focus is on Malaysian startups, it will also consider opportunities in Southeast Asia. This regional outlook aligns with the founders’ vision of establishing Malaysia as a hub for technological innovation in the region.
The Cambrian Fund faces challenges, including the long-term nature of investments in hardware-software integrated products. Unlike e-commerce ventures that might see returns in one or two years, the fund’s investments will likely take five years or more to bear fruit. “We need to educate the investing community about the nature of this kind of business,” Chu acknowledged.
Despite these challenges, the founders remain optimistic about the fund’s potential impact. They see it as a crucial step in creating a self-sustaining ecosystem of innovation, where success breeds further success.
As Malaysia continues to position itself as a key player in the global semiconductor landscape, initiatives like the Cambrian Fund will play a pivotal role in nurturing the talent and ideas that will drive the nation’s technological advancement. With their track record of success and deep industry insights, the ViTrox founders and Southern Capital are well-positioned to identify and nurture the next generation of tech leaders in Malaysia and beyond.
The tech ecosystem will be watching closely to see which startups emerge as the torchbearers of Malaysia’s industrial innovation.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
