cradle investment program
TRANSCRIPT
CReating And Developing Leading Entrepreneurs Updated: 9th Sept 2008
An introduction to CIP Presentation
Overview of Cradle
Individuals with Innovative Ideashaving insufficient funds to realizetheir venture
Aspiring Entrepreneurs needing funds and mentoring to grow
Inventors / Researchers needing funds and guidance to commercialize their venture
RM 50,000 per Tranche(max 3 Tranches)
Industrial Guidance
Market Access
Competency building
Industrial Collaboration
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 .
Exp
ansi
on
Where we are in the Funding Ecosystem
Time
Growth & Profit
Fu
nd
ing
Nee
ds
Point Zero
Production &
Commercialisatio
n
Market Entry
Production
Enhancement
New Markets
Scaling &
Expansion
Commercial
Success Pre IPOListin
g &
Go Global
Design &
Conceptualisatio
n
Idea Birth
Product Prototype
& Proof of C
oncept
Other Grants, SME Loans & Incubators, Government Incentives, Angels & Corp Investors
Project Financiers, Commercial Banks, Venture Capitals, Private Equity, Credit Guarantee Corporation, Leasing & Factoring Providers, Govt. Agencies
CradleInvestmentProgramme
Institutional & Foreign Investors, Public Funds, Merger & Acquisitions, Merchant BanksMDeC
What we do ? Developmental Focus
Pre-Seed – Idea stage or up to Proof of Concept and Lab/Industrial prototype development
Investment Focus
Cradle funds Technology Innovation with Commercial Value
Types Of Developmental Programme
* More innovative CIP funding products are being developed for entrepreneurs
To
war
ds
Inn
ova
tio
n &
C
om
mer
cial
izat
ion
for Entrepreneurs
for University
What the Programme offers
Proof that Idea Works! Links between Investors, Angels, VCs, Financiers, Tech & Commercialisation Partners
Press & Media Exposure Industry Partners
Proven track record & credibility Complete business coaching programme to assist entrepreneurs
Training Mentoring
Complete project deliverables as your application, don’t pay back! Ideas Bank Terms & Conditions apply
In 3 Tranches of
Developmental Partners
SO NOW YOU HAVE AN IDEA
DO YOU WANT TO KNOW MORE?
How do I apply?
Applications only accepted online! No Mail-in or Email No Attachments
Helpline: Email: [email protected] Cust. Relations: +603.21664730
OnlineApplication
http://www.cradle.com.my
Process & Client Charter
Application and Evaluation Process
Recommendation to fund by CIP to
Internal Committee
Application Submission(Online Only through CIP Website)
Idea Screening & Request for Clarification
Resubmit for Idea Scoring (Based on pre-established
criteria)
F4A Funding Sum Finalization / Agreement
Offer / Acceptance
Agreement Stamping, Matching of Mentors /Entrepreneur Briefing
Mobilization & fundingdisbursement on
milestones & tranches
Short Listing / Interview /Deliverables Setting/
Summary Due Diligence Process
Decision by IndustryApproval Committee
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.
Request for Tranche 2 & 3
Approval
Idea Refinement Programme
6-8 weeksBatch Closing Approval Mobilization 4-6 weeks
**
Revised Structure
Mentoring:a)RM5000 per mentor per tranche (different mentors); max RM15,000, orb)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.
Ap
pro
val
* S
ub
ject
to
P
erfo
rman
ce
* S
ub
ject
to
P
erfo
rman
ce
4 months 4 months 4 months
Deliverables Business Planº Prototype Alpha¹ Proof of Concept
(when applicable)
Business Plan¹ Prototype Alpha² Proof of Concept
(when applicable)
Business Plan² Prototype Beta Proof of Concept
Milestone 1
Milestone 2
Milestone 3
Mobilization
Milestone 4
Milestone 5
Milestone 6
Mobilization
Milestone 7
Milestone 8
Milestone 9
Mobilization
10 weeks
Application Pre-Comm
Gra
du
atio
n
Co
mp
leti
on
10 weeks
Application
4 months 4 months 4 months
Pre-Comm
**
Milestone 1
Milestone 2
Milestone 3
Milestone 4
Milestone 5
Milestone 6
Milestone 7
Milestone 8
Milestone 9
* S
ub
ject
to
P
erfo
rman
ce
* S
ub
ject
to
P
erfo
rman
ce
Support
Evaluatio
n
Commercialis
ation
PointUpdate
Commercial P
rofile
Business
Plan &
Execu
tive S
ummary
Update Revie
w
Update
Commercial P
rofile
Ideas Bank Role
Business
Plan &
Execu
tive S
ummary
Update Revie
w
Business
Plan
Draft R
eview
Initiate E
xecu
tive S
ummary
Build C
ommercial P
rofile
Revised Structure: Ideas Bank
Support Services 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
Workshops Idea Refinement Programme
+6 months
Graduate Tranche 3
Graduate Tranche 1: 12 months+ 6 monthsIdeas Bank Period
Graduate Tranche 2
Milestones & Deliverables• You need to clearly define what you plan to do with the grant award
• CIP Grants are for:
• Milestones can follow a pattern and be customized for your particular idea project
Tranche 1: 4 Months
Limit: RM 50,000
• Mobilization
• Milestone 1 Deliverables
• Milestone 2 Deliverables
• Milestone 3 Deliverables
Tranche 2: 4 Months
Limit: RM 50,000
• Mobilization
• Milestone 4 Deliverables
• Milestone 5 Deliverables
• Milestone 6 Deliverables
Tranche 3: 4 Months
Limit: RM 50,000
• Mobilization
• Milestone 7 Deliverables
• Milestone 8 Deliverables
• Milestone 9 DeliverablesR
M 1
00,0
00R
M 1
50,0
00R
M 5
0,00
0
+
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.
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) RM5,000 per mentor per tranche (different mentors); max RM15,000
b) RM10,000 per mentor for all tranches (same mentor); max RM10,000
Mentoring
Where Do My Ideas Go?
4 months
CIP Idea DevelopmentTranche 1
12 Months
Ideas Bank PeriodMatching with Investors
CIP Ideas Bank Timeline
+ 6 months
If Tranche 2 completed
+ 6 months
If Tranche 3 completed
The Ideas Bank 12 months terms & condition, extends by 6 months for Tranche 2 & 3.
Cradle Application Tips
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.
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
Do
Cradle Application Tips
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!
Do
Cradle Application Tips
Register & Apply For
at
www.cradle.com.myNow!
Batch Closing is Midnight every 3rd Monday of every month
Thank you and Good Luck !Q&A Session