Cradle Fund
SEED
Cradle Fund provides two main types of funding to technology entrepreneurs and startups: grants and equity investments.
Grants
Cradle Fund offers grants to early-stage startups in the form of non-equity funding. These grants are provided as financial assistance without any ownership or equity stake in the company.
CIP SPARK is a grant of up to RM150,000 for a maximum duration of eighteen (18) months, covers the development and pre commercialization of for technology start-ups.
You can apply for CIP Spark if there is at least 2 individuals or a registered company (PLT, Ent, and Sdn Bhd). For individuals, this application is open to Malaysians and non-Malaysians residing in Malaysia.
For companies, your company shall not be more than 5 years old, and earned revenue must not exceed RM3 mil. For companies who are has less than 51% of Malaysian owners, majority employees must be Malaysians and there shall be no other company that holds more than 25% of your company’s share.
Your company should also own the IP rights, including university and research institute spin-offs.
CIP SPRINT is a grant of up to RM600,000 for a maximum duration of eighteen (18) months, covers the commercialization of tech and covers SMEs.
You can apply for CIP Sprint if you are a Sdn Bhd, which includes universities, research institute spin-offs and SMEs.
Your company shall not be more than 7 years old and earned revenue must not exceed RM5 mil.
For companies who are has less than 51% of Malaysian owners, majority employees must be Malaysians and there shall be no other company that holds more than 25% of your company’s share.
Your company should also own the IP rights, including university and research institute spin-offs.
Equity Investments
In addition to grants, Cradle Fund also provides equity investments to startups.
This involves acquiring an ownership stake in the company in exchange for funding.
The equity investments are typically made in the form of convertible notes or equity instruments. Cradle Fund becomes a shareholder in the startup and may benefit from the company's growth and success in the future.
CSVF1 will invest in early stage companies that exhibit a clear path of growth and profitability. Targeted investment size per company: RM1mil - RM3mil for minority equity stakes at reasonable valuations.
Eligibility
The eligibility criteria for applying grants or equity investments from Cradle Fund in general:
Malaysian-based company: Typically, Cradle Fund grants are available to companies that are registered and operating in Malaysia. The company should have a substantial presence in the country and contribute to the local technology ecosystem.
Early-stage startups: Cradle Fund primarily targets startups at the pre-seed and seed stages of development. These are typically early-stage companies that are in the process of commercializing their ideas or products. The grant funding is intended to support the initial stages of business development.
Technology focus: Cradle Fund focuses on technology-based industries, including information and communication technology (ICT), high-impact technology sectors, and creative multimedia content and technology. Your startup should align with these sectors and demonstrate innovative and scalable technology solutions.
Business viability: Cradle Fund assesses the business viability of the startups applying for grants. This includes evaluating the market potential, competitive advantage, and scalability of the business model. The startup should have a clear value proposition and a strong potential for growth.
Entrepreneurial team: The team behind the startup is an important consideration. Cradle Fund looks for capable and committed entrepreneurs with relevant expertise and a track record of execution. The team's ability to drive the business forward and adapt to challenges is taken into account.