Cradle allocates RM26.5 mil to two new schemes

Cradle allocates RM26.5 mil to two new schemes

Bernama / Bernama
June 19, 2020 23:21 pm +08
The Edge Markets

KUALA LUMPUR (June 19): Cradle Fund Sdn Bhd is allocating RM26.5 million to fund its two newly launched investment programmes, namely Cradle Investment Programme Ignite (CIP Ignite) and Cradle Investment Programme Accelerate (CIP Accelerate).

Its group chief executive officer Rafiza Ghazali said out of the total allocation, RM16.5 million will be used for CIP Ignite with the remaining RM10 million earmarked for CIP Accelerate.

“For both grants, we are targeting around 38 startups to be granted with both programmes in the next five to six months,” she told reporters after the launch of the grants by Minister of Science, Technology and Innovation (Mosti) Khairy Jamaludin here today.

Rafiza said CIP Ignite is designed as a conditional grant of up to RM500,000 to help support early-stage technology-based startups, tech-based small and medium enterprises (SMEs) or spin-off companies from universities or research institutes.

“The grant is divided into two distinct components — CIP Ignite (1) for deep tech innovations and CIP Ignite (2) for other innovative tech-based companies. These new funding programmes were designed to create more opportunities for early-stage companies to commercialise their innovations and create value in the market,” she said.

CIP Accelerate, on the other hand, provides funding of up to RM2 million focused on accelerating the growth of deep tech companies and spin-offs from universities and research institutes, she added.

To enhance the potential success of fund recipients, she said Cradle will provide value-added support in the form of its structured coaching programme, with fund recipients to be provided the services of an experienced business mentor, other value-added services as well as targeted training opportunities to address other vulnerabilities,

“The new grants have been developed based on what we have experienced during the COVID-19 pandemic.

“We can no longer afford ‘business as usual’ to find innovative, technology-based, solutions for the pressing issues Malaysia faces such as climate change access to better healthcare, and food and energy security,” she said.

Meanwhile, Khairy Jamaludin in his speech said many opportunities could be explored in the new norm by local startups.

He said in every crisis there are new opportunities and strengths, but the company needs to understand the reality in the new norm to keep up with technology-related innovations.

“Cradle Fund will continue to be committed to providing guidance to local startups and hopes these two grants will contribute to the country’s economic recovery. The government will support high-tech companies among local startups with the potential to leverage existing innovations,” he said.