Funding and Commercialisation Support May, 2015 Ms. Farrah Azlin Alias Manager, Investment

/cradlefundsb/in/cradlefund/CradleFund II INTRODUCING CRADLE Cradle is an agency of Ministry of Finance (MOF) that manages Cradle Investment Programme (CIP). Cradle aims to achieve commercialisation efficiency and sustainable entrepreneurship for budding technology entrepreneurs.

/cradlefundsb/in/cradlefund/CradleFund II OUR FOCUS  Technology related  Innovation  Commercial Viability “Cradle Funds Technology Innovation with Commercial Value”

Cradle & The Ecosystem Idea Birth Design &Planning Product Prototype & Proof of Concept Production & Commercialisation Market Entry Production Enhancement New Markets Scaling & Expansion Commercialisation Success Pre IPO Listing & Go Global Pre SeedSeed Point Zero Growth & Profit Growth to Maturity Project Financiers Commercial Banks Venture Capitalist Private Equity Credit Guarantee Corporation Leasing & Factoring Providers Government Agencies Institutional Foreign Investors Public Funds Merger & Acquisition Merchant Banks Pre SeedSeed Cradle Fund Sdn Bhd © Private & Confidential

/cradlefundsb/in/cradlefund/CradleFund II INTRODUCING CIP Malaysia’s 1st development and technology commercialisation funding programme. Offers innovators and entrepreneurs the FUNDS and the COMMERCIALISATION SUPPORT to help them transform their raw technology-based ideas into commercially viable ventures or local start-up companies to attain commercialisation.

/cradlefundsb/in/cradlefund/CradleFund II OUR INVESTMENT FOCUS

/cradlefundsb/in/cradlefund/CradleFund II  Entrepreneurs  Public  Up to RM150,000  Funding of Idea  Prototype & Biz Plan

/cradlefundsb/in/cradlefund/CradleFund II  Universities/Colleges  Research Institutes, Students  Up to RM150,000  Funding of Idea & Enhancements

/cradlefundsb/in/cradlefund/CradleFund II Eligibility Criteria Any team of individuals who meets the below criteria:  Main applicant is a Malaysian aged 18 years and above  Main applicant is permanently residing in Malaysia  Minimum of 2 applicants and maximum of 5 applicants  per application

/cradlefundsb/in/cradlefund/CradleFund II  Reasonable allowance for the Project Team Members  Raw materials, tools, equipment  Personnel, services & technology to produce prototype/demos  IP search, legal advisory and basic agreement drafting  Product testing and certification  Product marketing collaterals expenses  Incubator subsidy / lab rentals Allowable Expenditure

/cradlefundsb/in/cradlefund/CradleFund II  Start-Ups  Up to RM500,000 (max: 2 approvals)  Funding of Market Access for Products  or Services

/cradlefundsb/in/cradlefund/CradleFund II  At least 51% of the company’s equity is held by Malaysians  Company in operations for less than 3 years  Company’s total revenue is not more than RM5mil in its total financial history  Company owns the Intellectual Property (IP) rights of the products and/or services, which is intended for commercialisation  Company already has a prototype which only requires another 8% to 10% product refinement work to meet market and industry expectations/demands Eligibility Criteria

/cradlefundsb/in/cradlefund/CradleFund II  Product refinement, market testing, and customised packaging  Marketing expenses  (inc. collaterals, travel where necessary, etc)  IP search & registration, Market research & feasibility studies  Pay package of employees  Rental and utilities  Purchase of hardware and software  Business Plan Refinement  Technology licensing/acquisition  (if necessary)  Production related expenses (if necessary) Allowable Expenditure

/cradlefundsb/in/cradlefund/CradleFund II END TO END FUNDING Prototype development Commercialisation Idea birth

/cradlefundsb/in/cradlefund/CradleFund II Added Value to The Ecosystem Commercialisation  Commercialisation assistance  Business advisors Marketing  A&P strategy consultation  Access to Media Competency Building  Knowledge resource  Training & coaching Strategic Partnerships  Link to public & private partners – market access, funding, etc Adopted Programmes  Encourage & facilitate privates sector-lead initiatives Private & Confidential Co-Investment Partners: Adopted Programme: Angel Iniatives:

/cradlefundsb/in/cradlefund/CradleFund II VALUE PROPOSITION TO THE ENTREPRENEURS Coaching on Business Fundamentals Individualised Coaching with dedicated coaches. All Coaches have entrepreneurial experience Programme focused on implementation and “show how” Targeted Coaching Based on Needs of Each Team Build Relationships with Peers and Eco-System

/cradlefundsb/in/cradlefund/CradleFund II CRADLE MENTORING PROGRAMME  Cradle has over 400 mentors  Mentors are sourced strictly by invitation from the Industry, Community Partners or by Entrepreneurs’ suggestions  Mentors are individuals who have substantial industry experience (at least 8 years) and considerable domain expertise  Mentors are vetted and approved by Cradle.

/cradlefundsb/in/cradlefund/CradleFund II Incentives for Angel Investors  Tax relief for Angel Investors  Encouraging more private sector investment for early stage technology companies Accelerate Growth of Angel Investment  Grow the numbers of accredited Angels Investors  Provide awareness and education on Angel Investing  Monitor Angel Investment Statistics in Malaysia Develop the Angel Ecosystem Strengthen the Angel Network Private & Confidential

/cradlefundsb/in/cradlefund/CradleFund II Application Screening PITCH Approval CIP APPLICATION Refinemen t

/cradlefundsb/in/cradlefund/CradleFund II Why ? PITCH  We want to hear from you about your idea  Providing an avenue for entrepreneurs to understand concept of ‘pitching’  Simplified two-page application form  No more lengthy forms – saves applicants’ time

/cradlefundsb/in/cradlefund/CradleFund II How to ? PITCH Go to Download PITCH Application Form Complete the form completed form to Cradle

/cradlefundsb/in/cradlefund/CradleFund II For further information : /cradlefundsb /in/cradlefund /CradleFund /cradle_fund - Thank You -