ST Bureau
Singapore
Cradle Fund Sdn Bhd or Cradle is an agency under the Ministry of Finance Malaysia (MOF) that supports local Malaysian tech based early stage start-ups since 2003. Throughout the years, it has helped over 700 Malaysian tech start-ups and holds the highest commercialisation rate amongst government grants in the country.
From its Cradle Investment Programme (CIP) to its Coach and Grow Programme, a market driven programme to train entrepreneurs, Cradle strives to be the leading funding agency that provides effective grant, equity, commercialisation support, coaching and industry value-add to accelerate the growth of start-up companies.
In an exclusive interview with Startup Terminal; Juliana
Jan, Chief Investment Officer, Cradle provides more insight about the agency.
Jan, Chief Investment Officer, Cradle provides more insight about the agency.
Excerpts:
 |
| Juliana Jan, Chief Investment Officer, Cradle |
ST:
Tell us more about Cradle.
Tell us more about Cradle.
Cradle Fund Sdn Bhd or Cradle is an agency under the
Ministry of Finance Malaysia (MOF) that supports local Malaysian tech based
early stage start-ups since 2003.
Ministry of Finance Malaysia (MOF) that supports local Malaysian tech based
early stage start-ups since 2003.
Throughout the years, we have helped over 700 Malaysian
tech start-ups and holds the highest commercialisation rate amongst government
grants in the country.
tech start-ups and holds the highest commercialisation rate amongst government
grants in the country.
From our Cradle Investment Programme (CIP) to our Coach
and Grow Programme, a market driven programme to train entrepreneurs, we strive
to be the leading funding agency that provides effective grant, equity, commercialisation
support, coaching and industry value-add to accelerate the growth of start-up
companies.
and Grow Programme, a market driven programme to train entrepreneurs, we strive
to be the leading funding agency that provides effective grant, equity, commercialisation
support, coaching and industry value-add to accelerate the growth of start-up
companies.
ST:
How do you support startup companies to raise pre-seed, seed and start-up stage
funding?
How do you support startup companies to raise pre-seed, seed and start-up stage
funding?
There are several methods, usually when we look at a
deal, we look at how much do they need to raise. If this is within our ticket
size, and fits all the criteria’s (eligibility as well as other qualitative factors),
we will probably come in on our own.
deal, we look at how much do they need to raise. If this is within our ticket
size, and fits all the criteria’s (eligibility as well as other qualitative factors),
we will probably come in on our own.
If the amount to be raised is more than RM800,000, we
could also be co-investing in a deal with any one of our partners. Also, due to
the limited number of investments we can make, we also deal flow the deals that
we do not think fits us, to other partners and investors. This could either be
done via our occasional pitch events, introductions or referral to the angel
side, which is handled by MBAN. However, there are some start-ups who are not
ready for investments for several reasons such as product-market fit, unclear
strategies, raising too much too early, we will try to advise them.
could also be co-investing in a deal with any one of our partners. Also, due to
the limited number of investments we can make, we also deal flow the deals that
we do not think fits us, to other partners and investors. This could either be
done via our occasional pitch events, introductions or referral to the angel
side, which is handled by MBAN. However, there are some start-ups who are not
ready for investments for several reasons such as product-market fit, unclear
strategies, raising too much too early, we will try to advise them.
Also part of the support we can provide is to refer these
start-ups, investment ready or not, to Coach & Grow Programme, our coaching
program.
start-ups, investment ready or not, to Coach & Grow Programme, our coaching
program.
ST: How
do you make a decision in who to invest in?
Despite the basic criteria the start-ups have to meet,
there are a lot of qualitative things that we look at, among the most important
ones are:
there are a lot of qualitative things that we look at, among the most important
ones are:
A) The team – capable, resilient enough to weather
difficult situations and coachable.
difficult situations and coachable.
B) Product scalability and clear growth potential
C) Clear revenue/profitability strategies
ST:
What are the factors and criteria for the investment?
What are the factors and criteria for the investment?
Criteria’s of start-ups:
·
Company with technology based products and/or
services
Company with technology based products and/or
services
·
Owns the rights to the IP
Owns the rights to the IP
·
Incorporated in Malaysia
Incorporated in Malaysia
·
Owned by a minimum 51% Malaysian
Owned by a minimum 51% Malaysian
·
In operation less than 5 years
In operation less than 5 years
·
Total revenue of not more than RM5 million
Total revenue of not more than RM5 million
ST:
When do you expect a return on your investment?
When do you expect a return on your investment?
Return can be between 5 to 7 years and we can go up to 10
years, on a case to case basis.
years, on a case to case basis.
ST:
How many more investments are you planning to make this year? What are the
developments so far?
How many more investments are you planning to make this year? What are the
developments so far?
13 investments this year. Looking at quite a number of
deal flows and finalising a couple. Hope to close before end of Q2.
deal flows and finalising a couple. Hope to close before end of Q2.
ST:
Would you like to give some tips for dynamic technology enthusiasts and
entrepreneurs to follow while raising funds for their startups?
Would you like to give some tips for dynamic technology enthusiasts and
entrepreneurs to follow while raising funds for their startups?
Know their numbers, know their markets and competitors
well. Explore potential investors and get to know them as this is going to be a
partnership, therefore they need to find the right fit for them and to always
remember to not lose focus of their business, while raising.
well. Explore potential investors and get to know them as this is going to be a
partnership, therefore they need to find the right fit for them and to always
remember to not lose focus of their business, while raising.
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