• A new investment product
    up to RM800,000 for local tech start-ups

To fund local early stage high potential technology start-ups through equity funding and value added assistance amounting up to RM800,000.

CIP 300

Frequently Asked Questions

What is DEQ800?

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.

Who is eligible to apply for DEQ800?

Start-ups that can apply for DEQ800 must be Malaysian incorporated company operating less than five (5) years; Ownership of at least 51% by Malaysian; Revenue of not more than RM5 million; and Own or at least hold all IP rights, titles and interest to the prototype, products and/or services.

What are the focus investment sectors under DEQ800?

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.

What do I give Cradle in exchange for their investment?

In return of investment, Cradle will take certain percentage of the company’s equity.

How long do I have to reach my deliverables?

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.

Is Cradle going to do all or most of my investment marketing for me?

No. Cradle is not obligated to do any marketing for the investee company.

How do I start with DEQ800?

Interested start-up companies may send their pitch deck to equity@cradle.com.my

I’ve found investments from another source. Can I add it to my total?

Yes. However, this will still be subject for negotiations between Cradle and investee company.

How will Cradle help me throughout the investment period?

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
What is the difference between DEQ800 and Co-Investment by Cradle?

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.

Additional Information:

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.

What is the difference between DEQ800 & Investment by Cradle Seed Ventures?

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.

How often do we need to submit report on our progress/expenditure?

Investee company needs to submit monthly management account to Cradle.

Will you nominate a person into our management team?

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.

What is the criteria for your exit?

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.

Do we need to follow your decision if Cradle is sitting on the board meeting?

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.

How long will Cradle become shareholders of the company?

Cradle is looking around 5 to 7 years.

Are you eligible for our Direct Equity 800?

The DEQ800 respective personnel will acknowledge your application and assist you for the further process and procedure.

If you meet all the criteria, kindly submit your presentation deck to equity@cradle.com.my for the first stage of application.

More Info

Cradle programmes provides funding for your business. Watch video to learn more >

CIP 300

ARE YOU ELIGIBLE?

  • The company that applies for the DEQ800 must be complying with the eligibility terms that state:

    • A company incorporated in Malaysia

    • Owned by at least 51% Malaysian shareholders

    • A company incorporated less than 5 years

    • Total revenue not more than RM5 million, and

    • Company owns or at least holds all rights, titles and interest in the Intellectual Property (IP) relating to the prototypes for purpose of commercialisation

  • If you meet all the criteria, you are most welcome to submit your presentation deck to equity@cradle.com.my as for the first stage of application. The DEQ800 respective personnel will acknowledge your application and assist you for the further process and procedure.
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