Understanding the need to grow from prototype stage and the need to fill up the great gap that has existed within the technology sphere for a long while – where hundreds of local technopreneurs have managed to boot-strap or secure pre-seed or pre-commercialisation funding for their technology prototypes but have failed to secure funds to help them commercialise their technology applications or intellectual property – Cradle introduced its CIP 500 grant in October 2009.
The CIP 500 is the first pure technology seed or commercialisation fund offered to help Malaysian start-up companies with technology-based products or services attain commercialisation.
It offers conditional grants of up to a RM500,000 (maximum of two consecutive approvals per company) to local start-up companies with innovative, technology-based products or services to attain commercialisation.
CIP 500 was introduced as a specific measure to bridge the existing seed/commercialisation funding gap (i.e. the lack of seed stage grant, equity and debt funding) in the Malaysian technology funding ecosystem. It provides budding Malaysian companies with the necessary funds, support and skills required to support commercialisation.
With the introduction of CIP 500, Cradle aims to maintain Malaysia’s innovation momentum in the changing landscape of entrepreneurship based on strong commercialisation focus, and create companies that are sizeable, sustainable or venture capitalist (VC)-fundable.
CIP 500 recipients are also given a 12-month period to complete the development of the relevant processes that will enable them to attain commercialisation.
Eligibility criteriaAny start-up company which meets the following criteria:
- At least 51% of the company’s equity is held by Malaysians, and
- The company is in operations for less than three years, and
- The company’s total revenue is not more than RM5 million in its total financial history, and
- The company owns the Intellectual Property (IP) rights of the product or service which is intended for commercialisation, and
- The company already has a prototype which only requires another 8% to 10% product refinement work to meet market and industry expectations or demands.
Allowable fundingCategories of funding covered under the CIP 500 are broad so that recipients will be able to get all the help needed to attain commercialisation. These categories include the:
- Product refinement, market testing and customised packaging
- Marketing expenses (inclusive of collaterals, travel where necessary, etc)
- Intellectual Property (IP) search and registration
- Market research and feasibility studies
- Pay package of employees
- Rental and utilities
- Purchase of hardware and software
- Business plan refinement
- Technology licensing or acquisition (if necessary)
- Product related expenses (if necessary)
- Industry Focus
- Mobile/wireless tech
- Creative multimedia & content development
- Shared services outsourcing
- Hardware design
- Software development (Bio-informatics, consumer productivity applications, data mining & business intelligence, electronic design automation, enterprise & business services, gaming & interactive entertainment, Internet & e-Commerce, networking, communications & connectivity, open source, operating systems, security)
- Internet-based businesses
- Biotechnology (Bio-informatics, Bio-chemicals, Bio-diagnostics tools, agriculture and food tech)
- Advanced materials
- Advanced manufacturing-related tech
- Renewable energy / waste management / recycling tech
- High-technology consumer & business products
- Semi-conductors (manufacturing of integrated circuits, microprocessors, logic devices, chipsets, memory chips)
- Life sciences (neuroscience, organic chemistry, potential drug target & method of treatment inventions, protein & nucleic acid-based inventions, small molecule chemistry & pharmaceuticals, medical devices, drug delivery systems, molecular biology assays, tools & techniques, analytical chemistry)
- Clean technology (energy consumption, power management, alternative fuels & materials)
BenefitsAs a CIP 500 recipient, researchers, innovators or students will be provided with more than just commercialisation funding. Recipients will also get value-added services that will help nurture, develop and prepare them to become successful businesses such as:
- Networking opportunities
- Further funding and market access support
- Financial training
Application procedureTo apply for the CIP 500, follow the steps below:
- Visit www.cradle.com.my
- Register to obtain your login and password
- Once logged on, click on the “CIP Application” tab
- In the pop-up box, select Product Commercialisation
- Fill in the online form
- Once all information is complete, click SUBMIT
- All CIP 500 applications MUST be submitted online via www.cradle.com.my. Email applications are NOT accepted.
- If you are unable to complete the form straight away, click SAVE and continue another day when you have all the information at hand.
- Only click SUBMIT if you have completed the entire form and is ready to submit your application.
- Applications are processed on a first-come-first-serve basis on an on-going basis.