Cradle, an agency under the Ministry of Finance, Malaysia is the organisation that manages the Cradle Investment Programme. The Ministry of Finance had allocated RM100 million to Cradle for this programme since it began in 2003. An additional RM50 million was recently added to the allocation for the 2011-2012 period, under the 10th Malaysia Plan. Cradle now runs two programmes, the Cradle Investment Programme for funding development and commercialisation of technological ideas and companies, and the Coach and Grow Programme, a market driven programme to train entrepreneurs.
The Cradle Investment Programme (CIP) is Malaysia’s first development and technology commercialisation funding programme that enables Malaysia’s budding innovators and aspiring entrepreneurs to transform their raw technology-based ideas in the ICT, non-ICT and high growth technology industries into commercially viable ventures or local start-up companies to attain commercialisation. Cradle offers two types of conditional grants – pre-seed (CIP Catalyst & U-CIP Catalyst) and seed (CIP 500). The pre-seed grants offer funding of up to RM150,000 to teams of individuals to develop their innovative technology ideas into prototypes or proof-of-concepts; whilst the seed grant offers funding of up to RM500,000 to help Malaysian start-up companies with innovative technology products/services to attain commercialisation. To learn more, please visit Cradle’s portal at www.cradle.com.my. Applications for the grants are also submitted online via the portal.
The Coach and Grow Programme, meanwhile, is a market driven programme intended to bring together key players in the entrepreneurial ecosystem to train existing entrepreneurs to grow their businesses to greater heights, via coaching, networking and showcase events. For more information, visit www.cradle.com.my.
With the launch of Malaysian Business Angel Network (MBAN) recently, Cradle has two new initiatives which are Malaysian Business Angel Network (MBAN) and Angel Tax Incentive. Malaysian Business Angel Network (MBAN) is a new initiative to grow more accredited angel investors through education & training. Equally important is that MBAN will also monitor angel investment statistics in Malaysia. MBAN aims to be an agent of growth for Malaysia's startup scene, putting Malaysia on the map as the go-to market for innovation, growth & entrepreneurship.
Angel Tax Incentive was announced in 2012 during the National Budget 2013 by the Prime Minister. Angel Tax Incentive was designed for angel investors to be accorded a tax deduction of up to RM500,000 in the third year (after 2 years) of his or her shareholding in the newly invested companies. Its objective is to stimulate and encourage angel investments from the private sector into technology based start-up companies in Malaysia. This will provide a funding avenue that would allow them to grow.