Since the outrage by some of the entrepreneurs about the model Virtuous Investment Circle (ViC) choose to operate by having a RM 500 application fees. Christy Lee, the Executive Director of ViC responded with the blog post below. Christy who is formerly a VC from MAVCAP is the only full time staff for ViC and her responsibilities include operations of the organization and filtering the applications to be pass to the investors.
She writes in the ViC blog.
We have been receiving a number of feedback about our charging of a nominal RM500 application fee.
First of all, we would like to thank some of you for the feedback. We appreciate when people point out issues that are bothering them because it allows us to have an open discussion to address them. We immensely value transparency, honesty and openness. It enables us to know what we must improve on.
That being said, we must apologise for the appearance of not being very clear at this point about our organisation model on our website (i.e. why we’re charging an application fee, where does this money go to and other related issues).
Since we just started our website, we are still in the midst of heavily improving it, which means that some pieces of information may still be missing at this point. (If we did really attempt to cover all possible issues from the get-go, the website will never go live, ever.)
We hope you will be patient with us while we’re working to make more information available on our website.
In setting up ViC, we have considered many possible organisation models from researching, interviewing and talking to many angels themselves and angel networks in the industry (worldwide). After careful deliberation of the existing state of our angel investing ecosystem in Malaysia and with support from local angel investors, we have decided that our current model is the most suitable path for now.
However, we are fully aware that our model may need to change in future depending on how the local ecosystem evolves and the feedback that we get from both local angel investors and entrepreneurs. We will be prepared for that when the time comes. But for now, we are confident that the decision we made is the best at this point which will serve our mission of creating a more vibrant ecosystem for angel investing in Malaysia.
Again, thank you to some of you for your feedback. We are currently preparing the information which will address the issues some of you have brought up more clearly and transparently. It will be updated on our website as soon as possible.
As any startup organization, they have refine their offering to the community and we will be monitoring the situation more.
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