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Cradle Investment Programme offers grants and equity for pre-seed and seed stage startups in Malaysia. With coaching and funding support, teams of individuals can commercialize innovative ideas and access up to RM500,000 in funding.
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By Muhammad Hafez Mohd Azhar 25 April 2018
• An agency under the Ministry of Finance Malaysia (MOF)• Early stage startup fund and influencer• To be the leading pre-seed and seed stage funding agency in Malaysia, that provides effective grant, equity, commercialization support, coaching and industry value-adds. Coach & GrowProgramme 2011 Cradle InvestmentProgramme 2003 -2017 Angel Tax Incentive 2013 DEQ800 Feb 2017 CIP300 May 2017 A conditional grantRM150,000 for pre-seed to transform prototype into commercially viable ventures and RM500,000 for seedto reach the commercialisation stage A market-driven programme of 1-on-1 coaching to train entrepreneurs to take their businesses to greater heights For angel investors to be accorded a tax deduction of up to RM500,000 after 2 years of investment Direct equity investment between RM300,000 and RM800,000 to areas that have good growth potential A pre-seedprogramme which provides grant and value added assistance upto RM300,000
Cradle in the Ecosystem Growth & Profit Pre Seed Seed Startup to Growth Marketing ● Strategic Partnerships ● Community building ● Co-working space Funding Needs Co-investment Value Add to Ecosystem Point Zero Design & Commercialisation Product Prototype & Proof of Concept Production & Commercialisation Market Entry Production Enhancement New Markets Scaling & Expansion Commercialisation Success Idea Birth
Offers funding of up to RM150,000 to teams of individuals • Funding of prototype development • Invest in innovative technology ideas and commercial potential • Start-ups • Up to RM500,000 • Funding of Market Access for products or services
Outcome & Impact • Develop and Commercialise Innovative Ideas • Number of Approvals – 628 (As of June 2017) • Commercialisation rate – 61.4% • Commercialising Companies for Growth • Number of Approvals – 216 (As of June 2017) • Number of companies raised further funding after completed CIP500 – 41 companies
DEQ800 (Direct EQuity 800) is a form of developmental equity investment that offers capital injection of up to RM800,000 for local early stage tech start-ups • Objectives • To support and drive the local start-up ecosystem and entrepreneurial activities in Malaysia by investing in high risk early stage start-ups • The investments are expected to achieve capital gains
Ticket Size • Maximum investment amount of RM800,000 for each start-up • Investment Structure • Cradle may opt for the subscription of either one or a combination of the following categories of new shares into the Target Company: • Ordinary shares • Preference shares • Investment Horizon • Maximum investment duration per company is 7 years • Startups’ Criteria: • Company with technology-based products or services; • owns all the rights, titles and interest in the intellectual property relating to the products and/or services for the purpose of commercialisation • a Sdn Bhd • owned by at least 51% Malaysian shareholders • in operation for less than 5 years • limited by shares and the total revenue of NOT more than RM5,000,000
Apply NOW! Share your deck with us: equity@cradle.com.my Or call us: +603 4045 8600
REGISTER FOR NOW Register at www.mban.com.my Or email us at enquiries@mban.com.my
Value Add Services & Support • Provide more structured coaching • Consultant:(Programme owner of CGP series 1 to 4)
WORQ • Co-working space + community platform • Provide all the necessary amenities and facilities CTV: cradletv.my Cradle TV - Malaysia’s first broadcast channel for aspiring entrepreneurs to watch the latest updates with what’s happening around the startups ecosystem