Launch of Cradle Seed Ventures
Financier and influencer of the Malaysian early stage technology start-up ecosystem, Cradle Fund Sdn Bhd (Cradle) announced the official operations of its venture capital arm, Cradle Seed Ventures Pte Ltd (CSV). CSV will manage the Cradle Seed Ventures Fund 1 (CSVF-1) which targets to invest the equivalent of between RM1mil and RM3mil into promising and scalable Malaysian technology start-ups at the Pre-Series A, Series A and Growth stages for a minority equity stake.
In comparison, Cradle’s product development grant, CIP Catalyst and its commercialisation grant, CIP 500 provide budding entrepreneur with RM150,000 and RM500,000 respectively. “It is our sincere hope that with CSV joining the ranks of venture capital funds in the country, there will be more options for high-potential start-ups to seek funding to develop and commercialise their ideas; and turn them into viable and sustainable businesses,” said CSV chief executive officer, Aziz Hussein. Aziz said the CSV team will leverage on Cradle’s strength in supporting the development of Malaysian early stage technology start-ups.
“We’re aware of the need to value-add and assist target companies to grow and we will actively monitor and track the development of all our future investee companies,” he said. CSV will mine for deals within the National Key Economic Areas (NKEAs) namely in the electrical and electronics, healthcare, business services, financial services, wholesale and retail and medical fields with specific focus in Internet and mobile technology businesses; software and enterprise solutions; and hardware and engineering solutions. Aziz said CSV is now actively seeking deals in these areas and are already studying more than 30 deals and hopes to close at least two by the end of the year. 30% of the fund may also be invested to fund foreign start-ups with the intention of bringing talent and technology knowledge back to Malaysia or to allow market access to Malaysian companies or other strategic interests.
Aziz said that CSV is targeting for CSVF-1 to be a partnership between the public and private sectors and hopes to raise the fund size to the tune of RM100mil through contribution from partners. Currently, Cradle, through the Ministry of Finance Malaysia, has injected RM40mil in the fund. “We would like to forge partnerships with the private sector who will be able to provide a wider and deeper pool of deal flows, and even value adding” Aziz said. He added that the partners’ contribution will further strengthen CSV’s ability to support more Malaysian start-ups’ dreams of being regional successes. # End # About Cradle Seed Ventures Cradle Seed Ventures (CSV) is the venture capital subsidiary of Malaysia’s premier early stage financier and influencer, Cradle Fund Sdn Bhd (Cradle). CSV is the manager of an early stage venture fund based out of Malaysia. CSV is always on the lookout for start-ups with high growth potential, led by passionate founders with very high levels of enthusiasm. CSV’s mandated investments will be in the technology sector with specific focus on selected verticals.
CSV has the added strength of being able to leverage on Cradle’s experience in supporting early-stage start-ups, understanding their funding and operational needs and also be by their side when they scale in their local Malaysian market and to foreign shores.
For more information, go to www.csv.com.my
Cradle Fund Sdn Bhd (Cradle), an agency under the Ministry of Finance, Malaysia is the organisation that manages the Cradle Investment Programme (CIP) which began in 2003. CIP Catalyst provides entrepreneurs with up to RM150,000 to budding Malaysian entrepreneurs who want to develop their technology-based products. The CIP 500 fund which provides up to RM500,000 is targeted at Malaysian entrepreneurs hoping to commercialise their technology-based products. Cradle also runs the Coach and Grow Programme, a market-driven programme to train entrepreneurs. For more information, visit www.cradle.com.my.