The Myanmar Computer Federation (MCF), a non-profit organisation plans to invest in local tech startups as part of its seed and incubation program.
“MCF is trying to help find a way for the start-ups to cover their expenses,” said Tun Thura Thet, secretary general of MCF.
The startups that seek support will be enrolled in Kanaung Hub, at the Myanmar ICT park in Hlaing township, a co-sharing space and incubation center, he added.
The hub was inaugurated in June 2015, as a co-sharing office space and charges a basic fee to provide new startups with infrastructure and also get help to raise funding, Thet told DEALSTREETASIA.
During the incubation program, the funding will be given for six months or a year by getting sponsorship from corporations. Selection will be done by the Kanaung Hub.
MCF said that both the domestic as well as global tech companies are helping it with the incubation program.
“The equity or shares of the start up company will not be demanded by the investor (for the incubation program). The start-ups can work freely. The idea is to help connect with the big companies,” said Thet.
“If the startup is deemed successful, the acceleration program will allow investors to chip in with the marketing or to speed up the business development,” he informed adding that the MCF will facilitate the young startup’s meeting with the investors.
“The main issue is lack of entrepreneurs. If we want to support five people, we cannot find five of them. Maybe there are only a few people or maybe people have not yet come to the Kanaung hub,” said Thet.
Meanwhile, a few local tech startups have already raised funding from foreign investors and private equity firms. For example, the local creative digital agency Revo Tech received a six-digit investment from Anthem Asia in January; while NEX, also a digital agency, got $150,000 funding from Bilbros Ltd, in November 2015. Recently, the mobile-first entertainment app, MoMoLay raised seed funding of $200,000 from a Singapore investor in November 2015.