Grants worth RM38.5m have been approved to 50 companies as at August this year
by LYDIA NATHAN / Pic credit: cradle.com.my
CRADLE Fund Sdn Bhd (Cradle) has approved grants worth RM38.5 million to 50 companies as at August this year, after it launched its Cradle Investment Programme (CIP) and CIP Accelerate in June last year.
Incorporated under the Finance Ministry, the group provides funding to potential high-calibre technology start-ups in an aim to explore prototype development, commercialisation of innovations as well as accelerate growth of start-ups.
The group said it is given a certain allocation each year depending on the number of start-ups and funding to be provided, and still has an allocation left for this year as applications are being processed.
“Start-ups that fall under the technology umbrella are the focus of the programmes.
“The group looks for start-ups that have innovation and a commercial value to it,” Cradle said during the virtual Cradle Open Day 2021: Northern Edition yesterday.
Start-ups in the development stage can apply for CIP Ignite 1 while start-ups at the commercial stage can opt for CIP Ignite 2 or CIP Accelerate.
“The most important criteria are the levels of innovation and potential to its target market, as well as how the funding impacts the revenue and growth of a start-up.
“It is not limited to one sector only, instead if a company is proposing a project on ICT or logistics or even 5G sensor, then it is something we consider,” the group added.
Meanwhile, Xair Group of Cos MD Nor Zachy Fernandez said the funding provided by Cradle helped with its patented fuel-efficient power generator.
He said applying for funding will help if the start-up is already being monetised, and it does not need to be a big amount.
“It does not have to be a lot because even a small amount will validate the technology being created, and show that it satisfies a specific need.
“What is even more critical is developing a business and cashflow plan that is solid,” he said.
Fernandez added that Cradle was an easy company to work with because the access to information was simple and accessible.
“Cradle definitely helped tremendously. It helped Xair go to the market quicker and capture a market share in a greater way.
“It also made us more competitive because of the approach we could take to our target markets,” he noted.