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DEQ800 is a new investment product by Cradle following its investment portfolio expansion effective February 2017. DEQ800 is the abbreviation for Direct Equity 800, a form of equity investment of up to RM800 000 for local tech start-ups.
DEQ800 comes as the next phase of product offering after Cradle’s co-investment programme that was first introduced in 2014. The launch marks Cradle’s new direction in supporting tech start-ups, particularly those at early stage.
Focused investment sectors under this initiative include areas within the National Key Economic Areas (NKEA) such as Financial Services, Tourism; Business Service; Electrical & Electronics; Wholesale and Retail; Education; Healthcare; Communication Content and Infrastructure; Oil; Gas and Energy; and Agriculture.
In return of investment, Cradle will take certain percentage of the company’s equity.
Deliverables for all investee companies under Cradle will be determine during meeting and based on agreement from both sides before proceeding to the next stage of investment.
No. Cradle is not obligated to do any marketing for the investee company.
Yes. However, this will still be subject for negotiations between Cradle and investee company.
Cradle will be offering a range of value added support that each of investee company will benefit from. These services are designed to help nurture, develop, and prepare them for the challenges of building a great tech start-up. These value added support includes:
- An enhanced Coaching & Mentoring Programme
- Opportunity to be matched with potential investors
- Match making with Cradle’s partners
- Internal training programme to support Creation, Innovation & Commercialisation
- Participation in Business & Networking events under Cradle
- Media and Public support among many others
DEQ800 is a new investment product which was launched in February 2017, is an investment portfolio expansion under Cradle. DEQ800 is direct investment whereby Cradle can invest on our own, with or without any partner and Cradle will lead the deal from sourcing to due diligence.
Co-Investment, an initiative under Cradle which was first introduced in 2014. Under co-investment, Cradle will invest with its co-investment partners. Unlike DEQ800, Cradle’s partners will lead the deal from sourcing to due diligence.
The Co-Investment partnership under Cradle is done in preparation for the gradual reduction of government grants towards supporting early stage start-ups. Co-investing exercise provides Malaysian Technopreneurs stronger support they need to take their ventures to global markets without having to leave Malaysia in search for investors. The initiative gives them the opportunity to use Malaysia as their home-based to work on their ideas.
DEQ800 or Direct Equity 800 was launched on 27 February 2017 and is managed by the investment team from Cradle. This investment is a pre-seed and seed stage with ticket size maximum at RM800 000 for local tech start-ups.
Cradle Seed Ventures (CSV) is Cradle’s venture capital arm that was launched on 4 June 2015 which targets to invest the equivalent of between RM1 Million and RM3 Million into promising and scalable Malaysian technology start-ups at the Pre-Series A, Series A and Growth stages for a minority equity stake.
Investee company needs to submit monthly management account to Cradle.
Cradle reserved the right to appoint a director. Cradle will nominate an Executive Committee for the board from Cradle’s Senior Management Team. However, Cradle will not get involved in day to day operations.
Cradle is looking to have investment tenure of between 5 to 7 years and will find suitable exit after reaching the targeted timeline. However, this will depend on case to case basis.
No. This is subject to the number of votes received during board meeting as we believe that every board member have the rights in voting.
Cradle is looking around 5 to 7 years.