An introduction to CIP Presentation
CReating And Developing Leading Entrepreneurs
Updated: 9th Sept 2008
Overview of Cradle



Individuals with Innovative Ideas
having insufficient funds to realize
their venture
RM 50,000 per Tranche
(max 3 Tranches)
Industrial Guidance
Aspiring Entrepreneurs needing funds
and mentoring to grow
Industrial Collaboration
Market Access
Inventors / Researchers needing
funds and guidance to commercialize
their venture
Competency building
Who we are?

Cradle Investment Programme (CIP) was rationalized and
funded by Ministry of Finance, Inc. in 2003.

Cradle Fund Sdn. Bhd., an organization which runs the CIP,
provides fund for aspiring entrepreneur to ignite their ideas,
support their innovation and open opportunities for their
products or services to go to market.
Our Vision

To bridge the entrepreneur with alternate source of funding and
market access for their products and services .
Where we are in the Funding Ecosystem
Point
Zero
Project Financiers,
Commercial Banks,
Venture Capitals,
Private Equity, Credit
Guarantee Corporation,
Leasing & Factoring
Providers, Govt. Agencies
Maturity
Expansion
Other Grants,
SME Loans &
Incubators,
Government
Incentives, Angels
MDeC & Corp Investors
Cradle
Investment
Programme
Growth
Seed
Pre Seed
Funding Needs
Growth
& Profit
Institutional &
Foreign Investors,
Public Funds,
Merger &
Acquisitions,
Merchant Banks
Time
What we do ?

Developmental Focus


Pre-Seed – Idea stage or up to Proof of Concept and Lab/Industrial prototype
development
Investment Focus
ICT
• Mobile/Wireless Tech
• Creative Multimedia &
Content Development
• Shared Services
Outsourcing
• Hardware Design
• Software Development
• Internet-based Businesses
Non-ICT
• Biotechnology
• Bio-informatics
• Bio-chemicals
• Bio-diagnostic tools
• Agriculture & Food Tech
• Advanced Materials
• Advanced Manufacturingrelated Tech
• Renewable Energy/ Waste
Mgmt / Recycling Tech
• High-Technology Consumer
& Business Products
Cradle funds Technology Innovation with Commercial Value
for Entrepreneurs
• Entrepreneurs
• Public
• RM50,000 per Tranche
(max 3 Tranches)
• Funding of Idea
• Prototype & Biz Plan
• Universities/Colleges
• Research Institutes, Students
• RM50,000 per Tranche
(max 3 Tranches)
• Funding of Idea & Enhancements
Towards
Innovation &
Commercialization
Types Of Developmental Programme
for University
* More innovative CIP funding products are being developed for entrepreneurs
What the Programme offers
Conditional Grant
 Complete project deliverables as your
application, don’t pay back!
 Ideas Bank Terms & Conditions apply
Market Validation
 Proof that Idea Works!
 Links between Investors, Angels,
VCs, Financiers, Tech &
Commercialisation Partners
Commercial Exposure
Proven Developmental
Structure & Services
In 3 Tranches of
150K
50K
50K
50K
 Press & Media Exposure
 Industry Partners
 Proven track record & credibility
 Complete business coaching
programme to assist
entrepreneurs
Training
 Mentoring
Developmental Partners
Industry Partners
• Associations (NGOs) & Government Agencies that have
direct impact on industrial development in the areas of
technology & innovation.
• Associations (NGOs) – MACRI, NEF, TeAM, MIRC,
MINDS & PIKOM; Govt. Agencies – MDeC, MBC, MTDC,
MIMOS & SME Corporation.
Funding Partners
• Financial investors or commercial investors, such as
large corporations - access ideas via the Ideas Bank,
where they will contact entrepreneurs that interests them
• Current participants include: MAVCAP, MICP, iSpring
Capital, DTA Ventures, Bank Islam Venture Capital.
Commercialization
Partners
• Providing a commercial perspective to the entrepreneurs
by providing mentors and beta test sites, and eventually
first orders.
• Entrepreneurs can indicate corporations they want to
work with; list includes Litrak, Maxis, Sunway, Westport,
TH Group, Advance Synergy Capital, etc.
SO NOW YOU HAVE AN IDEA
DO YOU WANT TO KNOW MORE?
How do I apply?
Online
Application
http://www.cradle.com.my
Applications only accepted online!
 No Mail-in or Email
 No Attachments
Helpline:
 Email: [email protected]
 Cust. Relations: +603.21664730
Process & Client Charter
Batch Closing
6-8 weeks
Recommendation
and Approval Process
Application and
Evaluation Process
Application Submission
(Online Only through CIP Website)
Idea Screening &
Request for Clarification
Resubmit for Idea Scoring
(Based on pre-established
criteria)
Approval
Idea
Refinement
Programme
4-6 weeks
Disbursement and
Mentoring Process
Short Listing / Interview /
Deliverables Setting/
Summary Due Diligence
Process
F4A Funding Sum
Finalization / Agreement
Offer / Acceptance
Agreement Stamping,
Matching of Mentors /
Entrepreneur Briefing
Recommendation to fund
by CIP to
Internal Committee
Decision by Industry
Approval Committee
Mobilization
Request for
Tranche 2 & 3
Approval
Mobilization & funding
disbursement on
milestones & tranches
The entire approval process is expected to be completed within 10 weeks from the batch closing date.
Batch closing dates are the 3rd Monday of every month.
Revised Structure
4 months
Milestone 9
Milestone 8
Milestone 7
Mobilization
Deliverables
 Business Planº
 Prototype Alpha¹
 Proof of Concept
(when applicable)
 Business Plan¹
 Prototype Alpha²
 Proof of Concept
Pre-Comm
 Business Plan²
 Prototype Beta
 Proof of Concept
(when applicable)
Mentoring:
a) RM5000 per mentor per tranche (different mentors); max RM15,000, or
b) RM10,000 per mentor for all tranches (same mentor); max RM10,000
Cost for New Funding Areas may be claimed during any of the 3 tranches (** or for just 1 tranche):
a) Purchase/execution of industry market research & feasibility studies,
b) IP search, advisory and registration, partial for full IP drafting & submission.
c) Product marketing collaterals and product test samples expenses.
d) Market surveys & 3rd party testing/certification with concrete statistical data.
Completion
Milestone 6
Milestone 5
Milestone 4
Mobilization
Tranche 3
Up to RM50,000
Graduation
Tranche 2
Up to RM50,000
Tranche 1
Up to RM50,000
Milestone 3
Milestone 2
Milestone 1
Mobilization
Approval
4 months
* Subject to
Performance
Application
4 months
* Subject to
Performance
10 weeks **
Revised Structure: Ideas Bank
4 months
Milestone 3
Milestone 2
Milestone 1
4 months
Tranche 2
Up to RM50,000
Tranche 1
Up to RM50,000
* Subject to
Performance
Application
4 months
Milestone 6
Milestone 5
Milestone 4
Tranche 3
Up to RM50,000
* Subject to
Performance
10 weeks **
Pre-Comm
Milestone 9
Milestone 8
Milestone 7
Ideas Bank Role
Graduate Tranche 1: 12
months
Ideas Bank Period
Graduate Tranche 2
+ 6 months
Graduate
Tranche 3
+6 months
Support Services
 Workshops
 Idea
Refinement
Programme
 Workshops
 Review Measures
 Capacity Building Trainings
 Idea Refinement Programme
 Workshops
 Review Measures
 Capacity Building Trainings
 Idea Refinement Programme
 Workshops
 Review Measures
 Capacity Building Trainings
 Idea Refinement Programme
 Pipeline Initiatives
 Fundraising
 Sales
 Pitch & Networking
• You need to clearly define what
you plan to do with the grant award
Tranche 1: 4 Months
• Mobilization
RM 50,000
Milestones & Deliverables
• CIP Grants are for:
• Milestones can follow a pattern and be
customized for your particular idea project
Plan and Design
Build and Test
Review and Feedback
• Milestone 3 Deliverables
+ Tranche 2: 4 Months
RM 100,000
Product or Service Prototype and
Business Plan (Compulsory)
• Milestone 2 Deliverables
Limit: RM 50,000
• Mobilization
• Milestone 4 Deliverables
• Milestone 5 Deliverables
• Milestone 6 Deliverables
Limit: RM 50,000
+ Tranche 3: 4 Months
RM 150,000
Proof of Concept and/or
• Milestone 1 Deliverables
• Mobilization
• Milestone 7 Deliverables
• Milestone 8 Deliverables
• Milestone 9 Deliverables
Limit: RM 50,000
Approved Expenses for CIP Disbursements

Reasonable allowance for the Project Team & the Entrepreneur

Not meant to replace salary

Raw Materials, Tools, Equipment, Research Materials

Necessary personnel, services & technology needed to produce
prototype, conduct demo for proof of concept

e.g. Outsourcing fees, testing

Specialized consultants & researchers for Business and Feasibility
Plan purposes, approved by CIP

Transition to Tranche 2 & 3 must be justified by significant product
development aspects towards going to market & innovation.

New Areas of funding:





Purchase/execution of market feasibility study & research,
IP search, advisory and basic agreement drafting,
Product testing & certification
Product marketing collaterals expenses
Incubator Subsidy / Lab rentals
What the Programme is NOT for:

Funding companies or for company formation business setup,
operational cash flow expenses, patenting, manpower,
advertising, etc.

Loans for non-technological Traditional Cottage Industries &
typical/general SME businesses. Low innovation & saturated.

Money to purchase general use 3rd party IT related equipment /
software / infrastructure for own company use.

Funding for old outdated technological ideas – e.g pure
Informational Portals, E-Commerce storefronts, Internet
Advertising, Property or Directory Listings or Saturated Industry
Ideas – e.g: Security Camera via Handphones, E-Learning,
CRM, Maps, Mobile Search & Advertising, Network Security
etc.
Mentoring





CIP has over 280 mentors
Mentors are sourced strictly by invitation from the Industry,
Community Partners or by Entrepreneurs suggestion.
Mentors are individuals that have substantial industry
experience and considerable domain expertise. Mentors are
vetted and approved by CIP.
During the development period, a mentor will be assigned to
provide advise and coaching to the team.
Mentors are paid RM5,000 per CIP Tranche. The Mentoring
fee is paid out of the Grant you receive.
a)
b)
RM5,000 per mentor per tranche (different mentors); max RM15,000
RM10,000 per mentor for all tranches (same mentor); max RM10,000
Where Do My Ideas Go?
Commercialisation
partners
Ideas
Bank
Seed
Funding
Funding
partners
CIP Ideas Bank Timeline
4 months
12 Months
CIP Idea Development
Ideas Bank Period
Tranche 1
Matching with Investors
+ 6 months
+ 6 months
If Tranche 2
completed
If Tranche 3
completed
The Ideas Bank 12 months terms & condition, extends by 6 months for Tranche 2 & 3.
Cradle Application Tips
Do
 Pick a descriptive & concise title

Have 3 or more team members

Always use the Pop-Up Clarification
Help Guide beside each box in the
form.

Provide supporting market research
data or statistics

Thoroughly explain your idea. Convince
us. Read the questions carefully.
Cradle Application Tips
Do
 Summarize your research
finding in your own words

Identify your primary customers

Identify your main competitors

Consider what you can deliver
within a budget of RM 50,000
in 4-6 months for each
Milestone & Tranche

Try to obtain other matching
funds or industry and mentoring
support
Cradle Application Tips
Do
 Use headings & points. Layman
terms.

Take your time to make sure you
submit a complete description of your
idea. Use the ‘Save’ button

Allow time for queries. Do not wait until
the batch closing date to submit your
application or your responses to queries

Check your email regularly to facilitate
communication

Click Submit when you’re ready!
Register & Apply For
at
www.cradle.com.my
Now!
Batch Closing is Midnight every 3rd Monday of every month
Q&A Session
Thank you and Good Luck !