FAQ

CIP Ignite

Who can apply for CIP IGNITE (i)?

Deep tech companies at Technology Readiness Level (TRL) 5 to 7 for validation, conversion and refinement of products.

Who can apply for CIP IGNITE (ii)?

Non-deep tech companies at Technology Readiness Level (TRL) 8 to 9 for product commercialisation

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How long is the application cycle of CIP Ignite?

From pitching stage to approval stage will take around two (2) to three (3) months.

How long is the funding period of CIP Ignite?

It will take between twelve (12) up to eighteen (18) months.

Can we be a part of the audience of another company’s pitching session?

No. All pitching session will be done as ‘Closed Session’.

How will the funds be disbursed?

Funds will be disbursed through one-time advance to kick-start the fund. The following/rest will be on reimbursement and direct payment basis.

Do we need to own the IP?

Yes. The company must own the IP and/or have the rights to the IP.

Will Cradle take ownership of the IP or company, in exchange for the funding?

No.

Can we apply as individual, enterprise, or PLT?

No. Only Sdn Bhd may apply.

Would my product/service need solid traction (quantity of listing/users) before submitting the application?

CIP IGNITE (i)
Not necessary but it will strengthen your application.

CIP IGNITE (ii)
Yes. You must have validated product via paying customers

Will my concept/idea be leaked upon submitting my application?

No. Your concept/idea will be kept as private and confidential.

CIP Accelerate

Who can apply for CIP ACCELERATE?

Deep tech companies at Technology Readiness Level (TRL) 8 – 9 for product commercialisation.

What is the period of funding for CIP Accelerate?

Funding period will take between 18 to 24 months.

How will the funds be disbursed?

There are 3 modes of disbursement: Advance Payment, Direct Payment and Reimbursement

Will Cradle take ownership of the IP or company, in exchange for the funding?

No.

Do we need to own the IP or the technology?

Yes. The company must own the IP and/or have the rights to the IP.

Would my product/service need some traction (quantity of listing/users) before submitting the application?

Yes. You must have validated product via paying customers.

>What are the documents needed to submit my application for CIP Accelerate?

You need to submit a concise pitch slides outlining your company background, technology, business model, market and financial projection of between 20-25 pages to cipaccelerate@cradle.com.my.

Will my concept / idea be leaked upon submitting my application?

No. Your concept/idea will be kept as private and confidential.

The Coach & Grow Programme (CGP)

What is the Coach and Grow Programme (CGP)?

The CGP is a public-private partnership between Cradle Fund and Proficeo where Cradle are the Programme Owners and administrators and Proficeo are the architects and designers who conduct programme implementation.

It is a market driven programme intended to bring together key players in the entrepreneurial ecosystem to nurture existing entrepreneurs to grow their businesses to greater heights via coaching. It is designed to provide entrepreneurs with the tools and ‘show-how’ to implement strategies and plans during commercialisation and growth stages.

Who can apply for CGP?

For Season 1, 2 and 3 (2011-2015) only technology-based entrepreneurs were eligible to apply. From 2016 onwards, we intend to open up participation to other selected industry sectors provided the companies are registered in Malaysia, where 51% of the company is Malaysian owned and the primary base of operations is in Malaysia. Additionally, the primary applicant must be Malaysian, aged 18 years and above and residing in Malaysia for the duration of the programme.

Can I select the programme I want to attend?

No. Applicants will be selected for the most appropriate sub-programme following review of their application forms and an interview process. There are 3 different sub- programmes in the CGP and the content for each sub-programme is customised for needs of the companies in the appropriate stage. They are the Go2Market™ Programme, the Go4Growth™ Programme and GoGlobal™ Programme.

What are the fees I have to pay, to participate in the CGP?

The cost of participating in the CGP is RM25,000 (Twenty Five Thousand Ringgit Malaysia) per company. However, as at 2015 the programme is still fully subsidised by the Ministry of Finance. Terms and conditions apply.

How much time do I have to allocate for the coaching?

The duration of the Programme is 12 months. However, we understand that you are busy running your business and therefore the minimum commitment required from you is 2 days a month. We will provide you a schedule of coaching dates in advance, so that you can plan ahead.

What industry sectors must I be in to qualify for CGP?

CGP accepts applications from high growth companies from the following industry sectors:

  • Retail
  • Energy
  • Halaltech
  • Fashion and Creative Sectors
  • Foodtech
  • ICT
  • Internet Based Business
  • Biotechnology
  • Green/Clean Technology
  • Advanced Electronics
  • Engineering Technology
  • Medtech
  • Fintech
  • Agritech
  • Mobile Apps
  • Robotics
  • Internet of Things (IOT)
  • Big Data
  • Edtech
  • Consumer Tech
  • eCommerce and Online Sales
What will I get from joining the CGP?
  • Only coaching programme in Malaysia designed for Scaleups.
  • Content of coaching is customised based on your stage of growth.
  • Individualised face-to-face coaching with 2 dedicated coaches for 12 Months.
  • High performers will be invited to participate in the “Investment Readiness Programme”.
  • Formation of Close-Knit Peer and Alumni groups of, currently, 360+ companies.
  • Business Clinics, Market Access and Agency Dialogues to support entrepreneurs.
  • Experience Sharing events to learn from seasoned entrepreneurs.
  • Currently, fully subsidised by Ministry of Finance. No equity taken.
Who are the coaches?

The coaches are experienced Entrepreneurs, Industry Experts, Senior Management from multinationals and GLCs and Investors.

Can I submit my application in Bahasa Malaysia?

All applications must be submitted in English. If you are unable to complete your application in English, we advise you to get somebody to assist you.

How and where do I apply for the CGP?

Register your interest to participate in the CGP HERE.

The 2017/2018 intake is commencing.

You can email us at cgpsecretariat@cradle.com.my for more information.

Discover more about CGP at https://www.cradle.com.my/products/coach-grow/ and https://www.cradle.com.my/faq/

Angel Tax Incentive (ATIO)

What is Angel Tax Incentive?

Angel Tax Incentive is a new initiative approved by the Government to encourage more early stage investments by the private sector. This incentive hopes to reduce the risks usually associated with early stage investments by giving back in the form of tax exemption to the investors.

Who administers the Angel Tax Incentive?

Angel Tax Incentive is administered by the Angel Tax Incentive Office (ATIO) a unit under Cradle Fund Sdn Bhd (Cradle) under the auspices of the Ministry of Finance (MoF).

What is the Tax Incentive’s purpose and ATIO’s role within technopreneurship ecosystem?

The Angel Tax Incentive is designed to encourage more angel investments from the private sector into early stage companies in technology space. As such, ATIO’s role is to ensure that start-ups seeking investments from accredited angel investors are eligible and that investments made into these companies are genuine.

How does the Angel Tax Incentive work?

The investee companies will first have to apply with ATIO to receive qualification for investment under Angel Tax Incentive where they can then obtain a letter to present it to the accredited angel investors. ATIO will then submit all investment related documentations to MoF for approval & endorsement after the investment takes place.

Who provides accreditation to angel investors?

The Malaysian Business Angel Network (MBAN) will accredit angel investors in Malaysia.

What is MBAN’s role in the angel investment ecosystem?

Malaysian Business Angel Network or better known as MBAN is a body that functions like a trade organisation, driving regional and international linkages between angel investors. MBAN is responsible for the accreditation of individual angel investors and angel investor clubs, creating awareness and training for investors, and monitoring angel investment statistics in Malaysia.

Cradle on the other hand, serves as the interim secretariat for MBAN. The network is managed by a pro-tem committee comprising of various government agencies and angel groups including Angelsden, Virtuous Investment Circle (ViC), Pikom Angels Chapter and AIPO Business Angels Club.

How does ATIO work co-relatively with MBAN?

ATIO works closely with MBAN. MBAN, representing the private sector, will accredit the angel investors, whilst ATIO, representing the public sector, will provide qualification to the start-ups and validate the investments into these companies.

What is the investment focus areas covered under this initiative?

Angel Tax Incentive’s investment focus is in diverse areas of high growth technology industries with innovation including the following:

  • Advanced electronics and information technology;
  • Telecommunications;
  • Equipment/instrumentation, automation and flexible manufacturing systems;
  • Healthcare;
  • Electro-optics, non-linear optics and optoelectronics;
  • Advanced materials;
  • Transportation;
  • Value-add services; and
  • Emerging technologies

ABOUT INVESTEE COMPANY

What does Investee Company mean?

Investee Company refers to technology based start-up who is looking for investment/funding from the private sector.

What are the eligibility criteria as an investee company?

As below:

  • Minimum 51% Malaysian owned;
  • Must be a Sdn Bhd company and incorporated in Malaysia;
  • Company’s core business must be in qualifying activities as approved by the MoF;
  • Cumulative revenue less than RM5 million and has been in operation for 3 years or less (based on the latest financial year result upon application); and
  • The company must not be wind-up and/or in liquidation.
What is the qualifying period to apply as an investee company?

The qualifying period to apply as an investee company starts from 1 January, 2013 until further notice.

How long is the investee company’s qualification period for investment under Angel Tax Incentive?

The validity period is two (2) years only.

How does my company obtain investment from the investor?

The ideal situation would be that the investee company must already be in talks/discussion with the potential investors before applying to Cradle. The tax incentive would be an enticing motivation for the angel investors to make an investment into the investee company.

If my company currently receives financing from other avenues ie governmental grants or venture capitals, can I still apply?

Yes.

ABOUT ANGEL INVESTOR

How do I become an investor?
  • Must be a tax resident in Malaysia;
  • Either considered a High Net Worth Individual or High Income Earner
  • High Net Worth Individual – Total wealth or net personal assets of RM3 million and above or its equivalent in foreign currencies; OR
  • High Income Earner – The gross annual income of not less than RM180,000.00 in the preceding twelve (12) months; or jointly with his or her spouse, with gross annual income of RM250,000.00 in the preceding twelve (12) months.
What do I need to do to apply as an angel investor?

To apply as an angel investor, you will need to fill in the accreditation form provided by MBAN (for the time being, Cradle will act as the interim secretariat for MBAN until further notice).

Can I invest more than one company at one time?

Yes, you can invest in more than one company per year but the maximum investment approvals per annum is five (5) only. The minimum amount per investment is RM5,000.00 and up to a maximum of RM500,000 investment per annum in total.

How long does it take for the angel investor to qualify for tax relief? How much?

The investors must hold shares in the invested company for a period of two years prior to claiming the exemption. If the shares are disposed before the two years, the investment will be considered void for the tax incentive purposes.

The investment is qualified for tax relief on the third (3rd) year of his/her shareholding. For example, if an investment is made in the year 2013, the investor will be able to claim for tax exemption when he or she files for their tax returns in the year 2015.

The amount qualified for deduction is equivalent to the value of the investment made to the investee company. The aggregate income should comprise from all sources including business income for the basis period of year assessment.

Aside from cash, can I make in-kind investments?

No. All investments must be made in cash.

How long is the investor’s accreditation period?

Angel investor’s accreditation period is valid for two (2) years. However, it can be renewed if required.

What if I am not accredited by MBAN? Am I still qualified to invest?

In order for the investors to qualify for the tax relief, he/she must obtained accreditation from MBAN before making any sort of investments to the investee companies. If the investors did not obtain the accreditation from MBAN, the investors will not enjoy the tax exemption for any investment that he/she has made.

ABOUT INVESTMENT

What are the investment eligibility criteria?

The investment eligibility criteria consist of the following:

  • Investment must be made into a qualified investee companies/start-ups;
  • Must not be an immediate family member i.e. spouses, children, parent and grandparent;
  • Shall be for the sole purpose of financing the activities as approved by MoF;
  • Must hold the investment for a period of two (2) years prior to claiming the exemption;
  • Is not disposed of within two (2) years from the date the investment is made;
  • The angel investor must not hold more than thirty (30) percent of the total equity of the investee company;
  • Minimum amount of RM5,000.00 per investment and up to a maximum of RM5000,000.00 investment per annum in total;
  • Shall be a maximum of five (5) investment approvals per annum;
  • Investments made are to be paid in cash and in full and not in-kind;
  • New shares issued and reflected in the Shareholders’ Agreement;
  • The shares issued to the angel investors must be in the form of ordinary shares only. If preference shares are issued, it cannot be converted into a loan or call option, but can only be converted into ordinary shares.
When is the investment’s qualifying period?

The angel tax incentive is open for qualifying investments made from 1 January, 2013 to 31 December, 2017. The qualified investment must be made by qualified investors into a qualified investee companies. The investment made must be approved and endorsed by the Ministry of Finance.

What happens if the investment gone wrong halfway through the investment period?

The risks are to be borne by both the investors and the investee company. However, the tax relief is still applicable for the investors on the 3rd year of his/her shareholding.

What is the maximum share percentage in every investment?

The maximum share percentage in every investment is thirty (30) percent of the total equity of the investee company.

What is the minimum and maximum amount for each investment?

The minimum investment amount is RM5,000.00 each up to a maximum of RM500,000.00 per annum in total.

Is there any post-investment condition?

Yes, the investee company must have business activities in Malaysia for at least two (2) years after the investment is made.

Have a question and can’t find the answer on our FAQ page?

We are here to help.


enquiries@cradle.com.my

General Enquiries

cgp@proficeo.com

Coach & Grow

norfarahana@cradle.com.my

Angel Tax Incentive

caroline@cradle.com.my

Media Enquiries