Please be informed that Cradle office will be closed from 14th to 27th October in line with the Conditional Movement Control Order (CMCO) announced by Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob yesterday (12 October).

COVID19

Published March 30, 2020

This section provides the additional question received during the Live session that panel speakers didn't get to address

  • What should new start-ups with no track records, where should we going and apply?

For start-ups with no track record, you may want to apply to various accelerator programmes available for example WatchTower & Friends (WTF), 1337 Ventures (who is coming up with a fully online programme), Cyberview Living Lab, and MaGIC GAP etc. At the moment Cradle focuses on only startup in commercialization stage.

  • YB, macam mana syarikat yang dah lama dalam industri tapi mereka tak pandai buat kertas kerja untuk dapatkan tambahan modal bagi memperkembangkan lagi idea yang telah dilaksanakan pada beberapa pelanggan. Adakah kaedah untuk membantu mereka?
    (YB, we are a company that has been in the industry for many years. However, we have no knowledge or skill in preparing paperwork for funding to help enhance our idea that has been implemented to a few of our customers. Are there any help available for us?)

Different agencies/financial institutions require different type of paperwork and there are numerous examples available on the internet. As for Cradle, we accept application via pitch deck and a very simple online pitch form. We also include guideline for creating the pitch deck. Inside the pitch deck you will need to furnish information on your technology, solution, business model, market segmentation and management team. There are also examples on how to prepare your pitch deck available online.

  • YB, can NGO like us from Sarawak digital media e-platform association get the support from your department to support our local members whereby a lot not even startup but also they want to transform their business immediately into ecommerce. We need resources to help them immediately.
As an agency under MOSTI, Cradle can connect your NGO to our existing start-ups who are in the business of transforming small business to digital business such as Avana and Etesha. You can also refer to e-usahawan program under MDEC that supports business digitalisation as well.
  • Besides monetary, is Government supporting companies in promoting and branding?
Cradle provides grants and value added supports which includes promotions and branding, but at the moment we can only support our grant recipients in promoting their businesses.
  • A lot of money are horded in the private sector, how do we encourage or even make it mandatory to ensure more angel investors and business investing in other start-ups? This should be on top of the angel tax incentive.
On our side, we are actively connecting private sectors to our start-ups either for further funding and/or for working collaboration. On top of angel tax incentives, SC has licensed out Peer-to-peer (P2P) lending and equity crowdfunding (ECF) platforms to encourage private participation in funding start-ups and SMEs. In the future, we hope to work closely with MOSTI to come out with more initiatives.
  • I noticed the focus is mainly to support businesses that is running. Please also take consideration to fund those that will be losing jobs now to open business. So we need more pre-seed funds to encourage those who lose their jobs to venture into business.
At the moment, Cradle focuses on funding for tech companies (Sdn. Bhd.) in commercialisation stage and do not provide any funding for pre-seed stage. For individual applicant who is looking to start a tech company at this time with Covid-19 affecting global market, it is advisable for you to evaluate the risk and whether the market is acceptable to your business solution in this unprecedented and difficult time.
  • What are the grants available for the R&D, Commercialisation, and Product Development & Green Project Funding?
Here are some of the grants that can help you in their respective field:
  1. R&D:
  2. Commercialisation:
  3. Product Development:
  4. Green Tech Funding:
    • Agencies under MOSTI (Depending on stage)
  • Our original business model is mortgage crowd lending platform targeting underserved millennials. We have obtained clearance from BNM and KPKT respectively. If we were able to pivot to offer payday loans which will help many Malaysian in this crisis. Is there any way YB can assist us on the regulatory side?
In terms of assistance in regulatory matters, you need to adhere to the relevant authority bodies as they are the ones that controls the policy and monitor governance and adherence to regulations. Your product is highly regulated, and you would have to go to the right authority (in this case BNM) to get all the clearance for the pivot before you can launch your business.
  • A request from the startup community at seed stage, can Cradle please re-activate CIP for Startups which can have impact on the nation or Covid related relieves? Q1, cradle removed CIP and stopped pitch submission. Right now, there is ZERO Seed investment initiatives by the government since Jan 2020, mostly mid and late stage.
We apologise for the gap in our funding. We paused our funding application to ensure alignment of our funding products with MOSTI. As announced, Cradle will launch new CIP products in Q2 2020.
  • Will there be any Grant given by MDV, MAVCAP and CRADLE to the SMEs?
Cradle grants are only offered to tech based companies, MDV offers debt facilities and MAVCAP offers equity investment.
  • Do we need to encourage adoption of technologies from local companies?
Yes because technology will help companies to be more efficient and scalable. Digitization in particular is evidently important particular in the current situation. There are good expertise and solutions by local companies.
  • Private VCs like 1337 Ventures are running Digital Accelerators to pivot how they're still contributing to creating more resilient start-ups. Will any of the esteemed agencies represented here be partnering with VCs for this, or conducting their own?
Cradle is very much active in start-ups ecosystem and has partnered up to numerous private local and regional VCs as well as accelerators in co-funding and as source of deal flow. Our Coach & Grow Program (CGP) on the other hand, focuses on coaching and mentoring for start-ups to help them pivot and scale their business.
  • Also, if there are start-ups that can help with Covid-19 related support through tech they own or quick pivots to repurpose tech, whom can we reach out to in government to send in a summary?
Cradle has initiated “Startups for Startups” currently for all our grant recipient to promote their business. At the moment, our support is limited to our recipients’ companies.
  • Being in the service startup, I have legitimate invoices to customers on a 30 days payment terms. But I am paying my gig economy workers on a weekly basis. Is there possibility to quickly do invoice financing with government against legitimate invoices to vendors so we are able to manage cash flow:
There are numerous channel that provides quick invoice financing. You can go to licensed P2P lending platform for more information. Alternatively, you can look at one of our recipient; Capital Bay.
  • Are we only encouraging digital technology? What about real hardware technology that could make a difference?
Cradle supports technology and innovative companies which can include also includes hardware.
  • There is a tendency for Malaysian Tech companies to either base themselves out of Singapore or relocate there. Why do you think this is? And what can be done to encourage Malaysian start-ups to stay in Malaysia.
This depends on the company’s arrangement with their investor(s) especially for bigger rounds of investment (Series A and above). However, although some have their HQs in Singapore, their main business operation/office is still in Malaysia. We do hope to have more local investors to invest in Series A and above to enable Malaysian tech companies to stay in Malaysia.
  • YB can we get participation from large GLCs to really mobilise technology and digitalisation by working together with VCs that have expertise in identifying start-ups with the right VP and growth story? Petronas has done started with Agro Bank focusing on Agrotech. But this is a bank, banks being banks, and with BNM financing guidelines, startup will not stand a chance to get this funding.
Currently, there are GLCs that work closely with VCs, for example Petronas and 500 Startups, Axiata with MAVCAP for Axiata Digital Innovative Fund, and Media Prima and MDEC for Creative Content. We hope more GLCs will take up this initiative.
  • Good efforts YB and chiefs. We heard Malaysian funding ecosystem is running dry. Is government topping up funds for Mavcap, MDV and Cradle soon?
MAVCAP, MDV and Cradle have new fund allocations for the year. Cradle specifically, is finalising its new grant products and they will be launched soon.
  • Is there a plan by MDEC, MDV, Cradle, and Mavcap to jumpstart the tech scene at the end of this PKP? Will they focus on looking at new innovation or supporting only the start-ups that they are focusing on? I humbly make a suggestion: consumer behaviour during this time opens up an unprecedented opportunity for ecommerce. Export ecommerce across all goods, not just consumer goods are increasing. There is a massive global demand that is not being served due to local lock downs. Exporters should grab this opportunity to take market share from competitors by being digital and global.
For Cradle, we are targeting to launch our new grant products in Q2 2020 and we are looking forward to receiving tech and innovative companies applications.



Third Party Notice ×

Please be informed that application for CIP300, DEQ 800 & CSV are closed.

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