Hi Ahmad Muzaffar,

You can visit to our Cradle website regarding more info about fundings offered by Cradle, click here

CIP Catalyst’s investment focus is in diverse areas of ICT and high growth technology industries, including software and information services, internet: e-services, e-commerce and e-content, communication and networking: mobile data, high-tech consumer and business products, electronic and semi-conductors, medical devices and advance materials and biotechnology and life sciences, environmental resources management, renewable energy and technology innovation created for any industry. If you sincerely feel that your idea falls under the definition that we have stated, you are most welcome to submit your application. Successful applicants may receive up to RM150,000 per idea/application, subject to CIP approval.

For CIP Catalyst programme, there’s basic eligibility which is need to follow in order to apply :
*Main applicant is Malaysian aged 18 years and above, and
*Main applicant is permanently residing in Malaysia, and
*The team comprises a minimum of two (2) applicants and a maximum of five (5) applicants.
CIP 500 is the first pure technology commercialization fund in Malaysia that provides grant of up to RM500, 000 to help budding Malaysian companies with innovative technology ideas/product to attain commercialization. This fund is aim to create companies that are sizeable, sustainable or venture capital (VC)-fundable. In addition to this CIP 500 fund, it also provides necessary commercialization support.

The company that applies for the CIP500 grant must be a Sdn Bhd company complying with the eligibility terms that state:
* At least 51% of the company's equity is held by Malaysians, and
* Company in operations for less than three (3) years, and
* Company's total revenue is not more than RM5mil in its total financial history, and
* Company owns the Intellectual Property (IP) rights of the products and/or services, which is intended for commercialization
* Company already has a prototype which only requires another 8% to 10% product refinement work to meet market & industry's expectations/demands.

The Angel Tax Incentive Programme which was announced during last year budget aimed at providing tax incentive to the Angel Investor who have invested in the certified technology-based startups in Malaysia. Often, this technology based startups faced variety of challenges in obtaining funding to fund their business. Conservatively, they rely too much on the Government grants which are now shrinking and they also find it very difficult for them to obtain financing from conservative financial institutions like commercial banks, where those institutions require a collateral in which most of the times the startups have none. In order to bridge the funding gap, Cradle Fund Sdn Bhd has been actively lobbied for an incentive in the form of tax deduction to be given to the Angel Investor who have invested in this startups.

In the Angel Tax Incentive Programme, prospective Angel Investor has to be accredited by the Malaysian Business Angel Network (“MBAN”) as an accredited Angel Investor. The Eligibility Criteria to be accredited Angel Investor by MBAN shall be as follows;

• You must be a tax resident in Malaysia;

Note: For further reference on the definition of a tax resident, please refer to Section 7 of the Income Tax Act 1967.

You are either considered a High Net Worth Individual or High Income Earner, according to the following criteria:

• High Net Worth Individual– Total wealth or net personal assets of RM3 million and above or its equivalent in foreign currencies; or

• High Income Earner– A gross total annual income of not less than RM180,000 in the preceding twelve (12) months; or jointly with one’s spouse, a gross combined total annual income of RM250,000 in the preceding twelve (12) months.

Once you have been accredited as an Angel Investor by MBAN, you are now free to make investment in any certified Investee Company. Kindly note that in order for your investment to be eligible for the tax deduction under the Angel Tax Incentive Programme, you must make an investment in the certified Investee Company (Technology-based startups that has been certified by the Angel Tax Incentive Office of Cradle Fund Sdn Bhd as an Investee Company under the Angel Tax Incentive Programme). The following shall be the Investment eligibility criteria;

• Investment must be made into a certified Investee Company;

• The Angel Investor shall not have any immediate related connection with the Investee Company (Parent, Spouse, Children, Sibling, Grandparent and Grandchildren);

• To be eligible for the tax deduction, the Investor shall hold the shares in the Company for a period of two years prior to claiming the tax deduction (simply mean, that the Angel Investor shall not dispose of the shares within the period of two years after the Investment);

• The Angel Investor shall not hold more than thirty percent (30%) of the total issued and paid up capital of the Investee Company. If there is more than one Angel Investor, cumulatively, the percentage held by the Angel Investors shall not exceed 30%.

• Minimum amount of Investment eligible for the tax deduction shall be RM5,000 and maximum RM500,000.00;

• The Investment shall be paid in full and in cash;

• The issuance of shares and the amount of Investment should be reflected in the Shareholders Agreement entered into by the Investee Company, the Promoter and the Investor;

• The Instrument for the investment (to be eligible for the tax deduction) shall be in the form of Ordinary Shares only.

Once your Investment satisfy all the eligibility criteria, we will recommend your Investment to be approved by the Ministry of Finance for final approval. Once approved, your investment will then be eligible for the tax deduction.

As for the tax deduction, the deduction will be equivalent to the amount of investment made in the Investee Company, for example, if you have invested RM250,000 in the Investee Company, after two(2) years of your shareholding, you will then be eligible to deduct RM250,000 from your aggregate income in that particular year of assessment. For the avoidance of doubt or if you need any further clarification, you can always have a look at the tax simulation in our website at (http://www.cradle.com.my/tax-calsim/). Kindly also note that, in the event the investment exceeds the aggregate income of the angel investor for that year of assessment, any excess amount will not be refunded to the angel investor or be available as a credit to set off his liability for that year of assessment or any subsequent years of assessment. For more info regarding the angel tax incentive, visit the website http://www.cradle.com.my/angel-tax-incentive/ .

Actually, it is a requirement for you to have a team of minimum 2 people and maximum 5 people.
Maximum duration for CIP Catalyst prototype development is 1 year (12 months).
CIP Catalyst fund is given via reimbursement.

Dear Lina,

For the 1st questions, we encourages teamwork and discourages a “one-man show”. Therefore, there must be a Primary Applicant and at least a Secondary Applicant. There is always a strong management team in any successful businesses. Therefore, if you have a strong team, the probability of your idea receiving the grant is higher.

And for the 2nd questions, Primary Applicant and each team members will be sign the agreement. And each of the signing parties will be responsible equally in case the project fails.

For the last questions, It is a case to case basis, either lum sum payment or staggered payment

Hi Alif,

We would like you to clearly indicate what type of funding that you require; either grant for prototype development or grant for product commercialization. For prototype development, Cradle Investment Programme (CIP) Catalyst is a platform that transforms raw innovative technology-oriented ideas into viable and commercial products, nurtures budding individual innovators and aspiring Malaysian entrepreneurs, and prepares them for commercialization.

CIP Catalyst’s investment focus is in diverse areas of ICT and high growth technology industries, including software and information services, internet: e-services, e-commerce and e-content, communication and networking: mobile data, high-tech consumer and business products, electronic and semi-conductors, medical devices and advance materials and biotechnology and life sciences, environmental resources management, renewable energy and technology innovation created for any industry. If you sincerely feel that your idea falls under the definition that we have stated, you are most welcome to submit your application. Successful applicants may receive up to RM150,000 per idea/application, subject to CIP approval.

On the other hand, CIP 500 is the first pure technology commercialization fund in Malaysia that provides grant of up to RM500, 000 to help budding Malaysian companies with innovative technology ideas/product to attain commercialization. This fund is aim to create companies that are sizeable, sustainable or venture capital (VC)-fundable. In addition to this CIP 500 fund, it also provides necessary commercialization support.

The company that applies for the CIP500 grant must be a Sdn Bhd company complying with the eligibility terms that state:
* At least 51% of the company's equity is held by Malaysians, and
* Company in operations for less than three (3) years, and
* Company's total revenue is not more than RM5mil in its total financial history, and
* Company owns the Intellectual Property (IP) rights of the products and/or services, which is intended for commercialization
* Company already has a prototype which only requires another 8% to 10% product refinement work to meet market & industry's expectations/demands.

For CIP500, our additional requirement also states the company must provide/bear the remaining 15% of the total project cost as Cradle only provides 85% of the total project cost. We have calculated that the applicant are expected to source for the remaining 15% (estimated minimum RM88,235) of the total project cost, either in cash, or in kind. Any indication of this should be stated in the formal/official documentation with regards to your company establishment (SSM related). All of these eligibility terms and requirements as per stated in our portal imply that only companies with structure and administration of a Sdn Bhd companies are allowed to apply.

All application for CIP are submitted through online which is you may required to download the CIP Application Pitch Form (CIP Catalyst or CIP 500) http://www.cradle.com.my/about/resources/ as for the first stage of application. Completed pitch form will be undergo evaluation and short listing process by the analyst once you submitted the form through email. Those shortlisted, will be called for pitching session.