[Written in partnership with Cradle Fund, but the editorial team had full control over the content.]
When we talk about Malaysia’s startup landscape, a point of discussion is always about how we can prop up our homegrown businesses and entrepreneurs, making them a regional powerhouse and, in turn, elevating our whole ecosystem.
One organisation that has been putting their money where their mouth is, though, is Cradle Fund, also known as just Cradle.
If you’re growing a business in Malaysia, Cradle is undoubtedly one of the names you’ll need to familiarise yourself with. As of 2024, Cradle had disbursed over RM264 million worth of grants to over 1,000 startups, the team told us.
This is thanks to Cradle’s grants such as CIP SPARK (pre-seed funding) and CIP SPRINT (seed funding).
Through Cradle’s investment programmes, these ventures have garnered RM182 million in follow-on investments.
And as of 2023, Cradle announced that the companies funded and invested in by them have contributed a whopping RM1.83 billion to the national GDP since 2003. This in turn resulted in the creation of over 80,000 job opportunities.
Here’s a deeper dive into what exactly Cradle has been doing to be pulling these kinds of numbers.
A rich, storied past
Self-described as a focal point agency for Malaysia’s early-stage startups, Cradle was formed in 2003, incorporated under the Ministry of Finance Malaysia (MOF). Their mandate is to fund potential and high-calibre tech startups through its Cradle Investment Programme (CIP).
Cradle is presently administered by the Ministry of Science, Technology and Innovation (MOSTI).
Since its inception, the agency has gone on to launch a variety of funding programmes.
With these grants, Cradle has been one of the first government-linked entities to recognise the potential of startups as drivers of innovation and economic growth. Currently, they have two grants—CIP SPARK and CIP SPRINT.
Allocated under the 12-MP (Twelfth Malaysia Plan), CIP SPARK is a funding programme targeting technology startups for the development of ideas and Minimum Viable Product (MVP) as well as other pre-commercialisation activities.
CIP SPRINT is for the commercialisation of innovative technology products and services, aimed at assisting technology startups at an early stage to develop and commercialise their products in the market.
But Cradle isn’t just about offering monetary aid. In addition to that, they offer other types of support such as market access, networking opportunities, and promotional support.
As mentioned, Cradle has backed over 1,000 startups over the past two decades, with a number of these startups graduating into regional and global stages.
Who’s in the graduating class? Well, names like Grab (formerly MyTeksi), StoreHub, iMoney, and Photobook Worldwide are just a few examples of Cradle alumni.
What these success stories share is not just their entrepreneurial spirit, but the early belief and backing they received from Cradle at a time when private venture capital was still finding its footing in Malaysia.
Shaping the present
Today, Cradle also spearheads the MYStartup initiative, which includes the MYStartup Single Window. It has been the one-stop destination for all Malaysia’s startup ecosystem, benefitting all startups, investors, and other stakeholders.
This national initiative was established in 2021 by MOSTI. In line with Malaysia’s aim to be among the top 20 global startup ecosystems by 2030, MYStartup facilitates a seamless business environment by uniting founders, investors, tech talents, government agencies, and ecosystem players.
On top of facilitating those conversations and connections, MYStartup has offered pre-accelerator and accelerator programmes to foster budding local entrepreneurs. Currently, there are no such ongoing programmes.
The MYStartup platform and its startup accelerator programmes help bridge critical gaps in the startup journey. It’s a representation of Cradle’s mission to not just fund companies, but to build a sustainable and vibrant startup ecosystem in Malaysia.
This initiative also directly contributes to the Malaysia Startup Ecosystem Roadmap (SUPER) 2021-2030, which is also powered by Cradle.
Looking into the future
Cradle is essentially the custodian of SUPER 2021-2030, leading the charge in ensuring that we meet the goals and plans set out in the roadmap.
This involves elevating private sector-driven funding as well as forming a clear path from ideation to commercialisation for local startups. It also involves boosting local and foreign talents while improving local policies and regulations for startups.
From grants and accelerator programmes to startup-driven events and hackathons, these five things are all being worked on by Cradle through its various programmes.
As it marks 22 years of impact, Cradle’s influence is more relevant than ever. They recently just refreshed their branding as well to reflect their continual commitment to staying relevant and pushing ahead on their mission of developing Malaysian startups.
Their track record is proof that government intervention, when thoughtfully designed and entrepreneur-centric, can yield great impact.
For startups, investors, and the wider tech ecosystem, Cradle has not just been a funder, but a true catalyst for innovation.
- Learn more about Cradle here.
- Read other articles we’ve written about Malaysian startups here.
Featured Image Credit: Cradle
