On June 19, 2020, Malaysia’s early stage startup influencer Cradle Fund Sdn Bhd (Cradle) revealed 2 new investment programmes with higher fund limits: Cradle Investment Programme Ignite (CIP Ignite) and Cradle Investment Programme Accelerate (CIP Accelerate).
This was done at a launch officiated by YB Khairy Jamaluddin, Minister of Science, Technology & Innovation.
The new grants come after an announcement last year that Cradle would like to enhance its Cradle Investment Programme 300 (CIP300) and Direct Equity 800 (DEQ800) in order to cater to a wider audience.
With these new funding programmes, Cradle hopes to provide more opportunities for local companies to explore prototype development, commercialisation of innovations as well as accelerate their growth.
1) CIP Ignite
The CIP Ignite is designed as a conditional grant of up to RM500,000 to help support early stage technology based startups, SMES or spin-off companies from universities or research institutes.
The grant is divided into 2 distinct components:
- CIP Ignite (1) for deep tech innovations and the conversion of validated prototypes to market-ready products/services, suitable for companies with a Technology Readiness Level (TRL) of 5-7,
- CIP Ignite (2) for other innovative tech based companies to commercialise their products/services, suitable for companies with a TRL of 8-9.
2) CIP Accelerate
CIP Accelerate is a programme that provides funding of up to RM2 million, and it’s focused on accelerating the growth of deep tech companies and spin-offs from universities and research institutes.
More Than Funding
Knowing that funding alone won’t be enough to ensure the potential success of companies, Cradle will be providing added support in the form of its Structured Coaching Programme (SCP).
Fund recipients will be provided with the services of an experienced business mentor, targeted training opportunities to address other vulnerabilities, and more value added services.
Sectors covered under these programmes include ICT, Advanced Manufacturing & Engineering, Food Security & Technology, and Socioeconomics Drivers.
Both new grants are available to locally incorporated companies with not less than 51% Malaysian ownership, and revenues of not more than RM5 million.
Rafiza Ghazali, Group CEO of Cradle said, “The new grants have been developed based on what we have experienced during the COVID-19 pandemic.”
“The world we live in is changing rapidly and the challenges we face today and in the future can only be overcome by harnessing technology and innovation if we are to accelerate recovery and to remain competitive.”
We can no longer afford ‘business as usual’ to find innovative, technology based solutions for the pressing issues Malaysia faces such as climate change, access to better healthcare, and food and energy security.Rafiza Ghazali, Group CEO of Cradle
Staying True To Their Word
Prior to this announcement, then-acting Group CEO Razif Abdul Aziz shared in an interview with Vulcan Post that they had planned to:
- Introduce all new grant programmes with higher fund limits designed to appeal to a wider range of startups from digital to hard tech;
- Continue services such as dedicated coaches for all recipients to assist in the business-building process, and access to a variety of services as well as freebies from its partners;
- Bring back the Coach & Grow Programme (CGP) with Season 5, which is highly recommended for startups looking for support beyond funding;
- Be in universities and key hubs such as Penang, JB, KT, Kuching and KK, and build a conducive ecosystem for public and private universities in order to facilitate the emergence of innovative new tech and draw in private sector interest;
- Continue work to attract private sector interest in the tech startup space through collaborations and engagements.
From what we can see, the 2 new grants are in line with what was shared then, and we’re sure that more plans will be revealed in time.
- You can read more on what we’ve written about Cradle here.
Featured Image Credit: Cradle Fund