CR eating A nd D eveloping L eading E ntrepreneurs

1. An introduction to CIP Presentation CReatingAndDevelopingLeadingEntrepreneurs Updated: 9th Sept 2008

2. Overview of Cradle  Individuals with Innovative Ideas having insufficient funds to realize their venture RM 50,000 per Tranche (max 3 Tranches) Industrial Guidance  Aspiring Entrepreneurs needing funds and mentoring to grow Industrial Collaboration  Market Access Inventors / Researchers needing funds and guidance to commercialize their venture Competency building

3. Cradle Investment Programme (CIP) was rationalized and funded by Ministry of Finance, Inc. in 2003. Cradle Fund Sdn. Bhd., an organization which runs the CIP, provides fund for aspiring entrepreneur to ignite their ideas, support their innovation and open opportunities for their products or services to go to market. Who we are? Our Vision • To bridge the entrepreneur with alternate source of funding and market access for their products and services .

4. Seed Growth Maturity Pre Seed Expansion Production Enhancement Listing & Go Global Commercial Success Design & Conceptualisation Idea Birth Pre IPO Scaling & Expansion Production & Commercialisation New Markets Product Prototype & Proof of Concept Market Entry Where we are in the Funding Ecosystem Growth & Profit Other Grants, SME Loans & Incubators, Government Incentives, Angels & Corp Investors Project Financiers, Commercial Banks, Venture Capitals, Private Equity, Credit Guarantee Corporation, Leasing & Factoring Providers, Govt. Agencies Institutional & Foreign Investors, Public Funds, Merger & Acquisitions, Merchant Banks Cradle Investment Programme Funding Needs MDeC Point Zero Time

5. Developmental Focus Pre-Seed – Idea stage or up to Proof of Concept and Lab/Industrial prototype development Investment Focus What we do ? Cradle funds Technology Innovation with Commercial Value

6. Types Of Developmental Programme Towards Innovation & Commercialization for Entrepreneurs for University * More innovative CIP funding products are being developed for entrepreneurs

7. What the Programme offers • Complete project deliverables as your application, don’t pay back! • Ideas Bank Terms & Conditions apply • Proof that Idea Works! • Links between Investors, Angels, VCs, Financiers, Tech & Commercialisation Partners • Press & Media Exposure • Industry Partners • Proven track record & credibility • Complete business coaching programme to assist entrepreneurs • Training • Mentoring In 3 Tranches of

8. Developmental Partners

9. SO NOW YOU HAVE AN IDEA DO YOU WANT TO KNOW MORE?

10. How do I apply? Applications only accepted online! • No Mail-in or Email • No Attachments Helpline: • Email: enquiries@cradle.com.my • Cust. Relations: +603.21664730 Online Application http://www.cradle.com.my

11. Recommendation and Approval Process Disbursement and Mentoring Process Process & Client Charter 6-8 weeks 4-6 weeks Batch Closing Approval Mobilization Application and Evaluation Process Short Listing / Interview / Deliverables Setting/ Summary Due Diligence Process F4A Funding Sum Finalization / Agreement Offer / Acceptance Application Submission (Online Only through CIP Website) Recommendation to fund by CIP to Internal Committee Agreement Stamping, Matching of Mentors /Entrepreneur Briefing Idea Screening & Request for Clarification Decision by IndustryApproval Committee Mobilization & fundingdisbursement on milestones & tranches Resubmit for Idea Scoring (Based on pre-established criteria) Idea Refinement Programme Request for Tranche 2 & 3 Approval The entire approval process is expected to be completed within 10 weeks from the batch closing date. Batch closing dates are the 3rd Monday of every month.

12. Revised Structure Application Pre-Comm ** 4 months 4 months 10 weeks 4 months Milestone 9 Milestone 6 Milestone 3 * Subject to Performance * Subject to Performance Ideas Bank Milestone 8 Milestone 5 Milestone 2 Milestone 1 Milestone 4 Milestone 7 Mobilization Mobilization Mobilization Deliverables • Business Planº • Prototype Alpha¹ • Proof of Concept • (when applicable) • Business Plan¹ • Prototype Alpha² • Proof of Concept • (when applicable) • Business Plan² • Prototype Beta • Proof of Concept Approval Graduation Completion • Mentoring: • RM5000 per mentor per tranche (different mentors); max RM15,000, or • RM10,000 per mentor for all tranches (same mentor); max RM10,000 • Cost for New Funding Areas may be claimed during any of the 3 tranches (** or for just 1 tranche): • Purchase/execution of industry market research & feasibility studies, • IP search, advisory and registration, partial for full IP drafting & submission. • Product marketing collaterals and product test samples expenses. • Market surveys & 3rd party testing/certification with concrete statistical data.

13. Revised Structure: Ideas Bank Application Pre-Comm ** 4 months 4 months 10 weeks 4 months Milestone 3 Milestone 6 Milestone 9 * Subject to Performance Ideas Bank * Subject to Performance Milestone 5 Milestone 8 Milestone 2 Milestone 4 Milestone 7 Milestone 1 Ideas Bank Role Business Plan & Executive Summary Update Review Business Plan & Executive Summary Update Review Update Commercial Profile Update Commercial Profile Commercialisation Point Support Evaluation Business Plan Draft Review Initiate Executive Summary Build Commercial Profile Graduate Tranche 1:12 months Graduate Tranche 2 Graduate Tranche 3 + 6 months Ideas Bank Period +6 months Support Services • Workshops • Idea • Refinement • Programme • Workshops • Review Measures • Capacity Building Trainings • Idea Refinement Programme • Workshops • Review Measures • Capacity Building Trainings • Idea Refinement Programme • Workshops • Review Measures • Capacity Building Trainings • Idea Refinement Programme • Pipeline Initiatives • Fundraising • Sales • Pitch & Networking

14. Milestones & Deliverables Tranche 1: 4 Months Limit: RM 50,000 • Mobilization Tranche 2: 4 Months Limit: RM 50,000 Tranche 3: 4 Months Limit: RM 50,000 • Milestone 1 Deliverables RM 50,000 • Mobilization • Mobilization • Milestone 2 Deliverables • Milestone 7 Deliverables • Milestone 4 Deliverables • You need to clearly define what you plan to do with the grant award • CIP Grants are for: • Milestones can follow a pattern and be customized for your particular idea project • Milestone 3 Deliverables • Milestone 8 Deliverables • Milestone 5 Deliverables • Milestone 9 Deliverables • Milestone 6 Deliverables + + RM 100,000 RM 150,000

15. Reasonable allowance for the Project Team & the Entrepreneur Not meant to replace salary Raw Materials, Tools, Equipment, Research Materials Necessary personnel, services & technology needed to produce prototype, conduct demo for proof of concept e.g. Outsourcing fees, testing Specialized consultants & researchers for Business and Feasibility Plan purposes, approved by CIP Transition to Tranche 2 & 3 must be justified by significant product development aspects towards going to market & innovation. New Areas of funding: Purchase/execution of market feasibility study & research, IP search, advisory and basic agreement drafting, Product testing & certification Product marketing collaterals expenses Incubator Subsidy / Lab rentals Approved Expenses for CIP Disbursements

16. Funding companies or for company formation business setup, operational cash flow expenses, patenting, manpower, advertising, etc. Loans for non-technological Traditional Cottage Industries & typical/general SME businesses. Low innovation & saturated. Money to purchase general use 3rd party IT related equipment / software / infrastructure for own company use. Funding for old outdated technological ideas – e.g pure Informational Portals, E-Commerce storefronts, Internet Advertising, Property or Directory Listings or Saturated Industry Ideas – e.g: Security Camera via Handphones, E-Learning, CRM, Maps, Mobile Search & Advertising, Network Security etc. What the Programme is NOT for:

17. CIP has over 280 mentors Mentors are sourced strictly by invitation from the Industry, Community Partners or by Entrepreneurs suggestion. Mentors are individuals that have substantial industry experience and considerable domain expertise. Mentors are vetted and approved by CIP. During the development period, a mentor will be assigned to provide advise and coaching to the team. Mentors are paid RM5,000 per CIP Tranche. The Mentoring fee is paid out of the Grant you receive. RM5,000 per mentor per tranche (different mentors); max RM15,000 RM10,000 per mentor for all tranches (same mentor); max RM10,000 Mentoring

18. 4 months + 6 months + 6 months 12 Months CIP Idea Development Tranche 1 If Tranche 2 completed If Tranche 3 completed Ideas Bank Period Matching with Investors Where Do My Ideas Go? CIP Ideas Bank Timeline The Ideas Bank 12 months terms & condition, extends by 6 months for Tranche 2 & 3.

19. Cradle Application Tips Do • Pick a descriptive & concise title • Have 3 or more team members • Always use the Pop-Up Clarification Help Guide beside each box in the form. • Provide supporting market research data or statistics • Thoroughly explain your idea. Convince us. Read the questions carefully.

20. Cradle Application Tips Do • Summarize your research finding in your own words • Identify your primary customers • Identify your main competitors • Consider what you can deliver within a budget of RM 50,000 in 4-6 months for each Milestone & Tranche • Try to obtain other matching funds or industry and mentoring support

21. Cradle Application Tips Do • Use headings & points. Layman terms. • Take your time to make sure you submit a complete description of your idea. Use the ‘Save’ button • Allow time for queries. Do not wait until the batch closing date to submit your application or your responses to queries • Check your email regularly to facilitate communication • Click Submit when you’re ready!

22. Register & Apply For at www.cradle.com.my Now! Batch Closing is Midnight every 3rd Monday of every month Q&A Session Thank you and Good Luck !