Key Takeaways
- • Cypress Asia, founded by entrepreneur Sivapalan Vivekarajah and former pitchIN COO Xelia Tong, launched a RM50 million debut venture fund targeting pre-Series A and Series A technology-driven businesses in Malaysia.
- • New Hoong Fatt Holdings Bhd, a Main Market-listed automotive replacement-parts manufacturer, committed RM20 million as anchor limited partner through its wholly owned subsidiary Jhi Soon Manufacturing Industries Sdn Bhd.
- • Fund strategy involves deploying RM1 million to RM3 million per investment across five to seven initial deals, with a target portfolio of 10 to 12 companies at full capitalization.
- • Cypress Asia is seeking the remaining RM30 million from family offices and other institutional investors; the fund carries a seven-year management term with two optional one-year extensions.
- • First investment expected in Q1 2027; the investment committee will comprise two representatives each from New Hoong Fatt and Cypress Asia Capital.
Summary
New Hoong Fatt committed up to RM20 million as the anchor limited partner, investing through its wholly owned subsidiary Jhi Soon Manufacturing Industries Sdn Bhd, which will subscribe for up to 20 million Class A redeemable preference shares in Cypress Drive Ventures at RM1 per share. Cypress Asia is actively fundraising for the remaining RM30 million from family offices and other institutional investors.
The fund targets technology-driven Malaysian businesses at early stages—pre-Series A and Series A—that are either profitable or demonstrate a clear path to profitability. Individual investment checks will range from RM1 million to RM3 million. Cypress Asia projects making five to seven initial investments, expanding to a concentrated portfolio of 10 to 12 companies if full capitalization is achieved. Depending on deal dynamics, the fund may lead rounds, co-invest with other managers, or participate in investor syndicates. The management term is set for seven years with two optional one-year extensions. First investments are anticipated in the first quarter of 2027, with an inaugural investment committee meeting scheduled for November 2026 and a pipeline of potential deals already undergoing due diligence.
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