Project Cornerstone is a pilot Khazanah co-Investment strategy aimed at matching every RM1 committed by co-investor(s) in exchange for minimal equity stake in startups at the pre-seed and seed stage of the VC lifecycle.
This programme aims to address the funding gap in the early stage of the VC lifecycle. It is designed to scale startups in the pre-seed and seed stage, as well as to create a platform to help ensure ideas get commercialized and reach the market.
In order for Khazanah to make an investment via this programme, it requires at least one other co-investor as a partner who will be investing, at their own discretion, into a business or startup. The co-investor(s) must be independent of the business or startup at the time of investment.
The ticket size for each investment ranges from RM10k to RM500k for equity stake in the company of no more than 10%.
The target sectors for the programme include education, sustainable development, ICT, life sciences, agri-food industries, creative industries, leisure & tourism, technology and all technology-related industries, including but not limited to electronics, med-tech, healthtech and medical devices, mobile & telecommunications, software & related services, hardware & related services.
The programme is piloted in the Northern Region of Malaysia, but exercises the flexibility to invest in other parts of the country.
No registrations are required. The Khazanah Koridor Utara (KKU) office will act as the secretariat to the programme and will keep co-investors abreast with the latest developments relating to the programme’s activities. Co-investors will be invited to pitching sessions to explore potential investments.
Any co-investor who has potential deals on hand can approach Khazanah directly at any time. Khazanah will evaluate the proposal and revert with a decision to invest within 5 working days.
No membership fee or programme fees are incurred. The only cost involved will be the investment made into the startup and other related investment costs such as due diligence, legal fees etc. Investment costs will be borne independently and is not deemed as a shared cost between the co-investor(s) & Khazanah.
Khazanah will be making investments through a special purpose vehicle. This programme need not be formally constituted and may form around a transaction where Khazanah and the co-investor(s) have agreed to invest. The formalisation will take place at the stage of the term sheet and the shareholder agreement.
The programme will consider ordinary equity and preferred equity, as long as there is a clear alignment interest between Khazanah, the co-investor(s) and the owners of the business or startup.
The time taken varies from investment to investment.
Yes. The programme does not limit the participation of other co-investors and there can be more than one co-investor per transaction.
Early access to deals
Building network with like-minded individuals
Contribution to nation building
Source of funds
Strong governance / Reputation / Trusted PartnerAbility to convene
Secretariat (Khazanah Koridor Utara office)
The company must be incorporated in Malaysia.
Pre-seed & seed funding: a minimum of RM10k, but not exceeding 500k per transaction;
The requested funding will be in exchange for 3 – 10% equity on a case by case basis;
Investment horizon: 3 – 5 years
Expected returns: 2.5x return on investment