The Minister of Science, Technology, and Innovation, YB Tuan Chang Lih Kang, presided over the signing of a Memorandum of Collaboration (MoC) between Cradle Fund Sdn. Bhd. (Cradle), Malaysia’s premier early-stage startup agency, and Bursa Malaysia Berhad (Bursa Malaysia).
The MoC was formalized with Cradle’s Acting Group Chief Executive Officer, Norman Matthieu Vanhaecke, and Bursa Malaysia’s Director of Corporate Strategy, Aina Zahari.
This collaboration’s primary objective is to raise awareness among startups regarding funding opportunities available in Malaysia, including those offered by the equity market. Furthermore, it aims to streamline the identification process for companies with the potential to list on Bursa Malaysia.
This collaboration is an integral component of the Ministry of Science, Technology, and Innovation’s (MOSTI) Fund Funnel program. The initiative is designed to simplify funding options and provide comprehensive support to startups throughout their funding journey, from the seed stage to the initial public offering (IPO).
The implementation of the Fund Funnel program aligns with Intervention Two outlined in the Malaysia Startup Ecosystem Roadmap (SUPER) 2021-2030, emphasizing the need to restructure the local investment ecosystem to enhance efficiency, attract high-quality investments, and facilitate funding access for startups.
Highlighting the significance of this collaboration, YB Tuan Chang remarked, “The Fund Funnel addresses the concerns raised by startups regarding the lack of information about government funding opportunities, providing clear and concise details about funding agencies and the specific stages at which they offer financial support.”
He continued, “As we introduce the Fund Funnel program, Malaysia embarks on a transformative journey to fulfil the aspirations outlined in the Malaysia Startup Ecosystem Roadmap. The Fund Funnel program signifies the government’s commitment to nurturing startups by providing them with vital funding access at every stage of their journey, in line with Malaysia MADANI’s aspiration to build an innovative and high-tech nation.”
Norman Matthieu Vanhaecke, Acting Group Chief Executive Officer of Cradle, expressed that the collaboration between Cradle and Bursa Malaysia demonstrates a continual commitment to engage with ecosystem players, promoting transparency in Bursa Malaysia’s listing requirements.
He added, “Through this collaboration, we hope to empower startups to develop comprehensive strategies, ultimately paving the way for successful listings on the exchange while bridging critical funding gaps within the ecosystem. By strategically aligning resources, expertise, and collaboration, we create an enabling environment where startups can thrive, revolutionize industries, and drive economic growth.”
Under this partnership, Cradle will provide market intelligence on the local startup ecosystem to assist Bursa Malaysia in identifying potential listing candidates. With 20 years of experience in the startup ecosystem, Cradle has engaged with companies across all stages of development and funding, supporting over 1,000 Malaysian technology-based firms and achieving the highest commercialization rate among funding agencies in Malaysia.
Bursa Malaysia will analyse the data shared by Cradle and collaborate with them to organize programs that focus on funding access. Additionally, Bursa Malaysia will support Cradle in knowledge sharing and help startups gain a better understanding of how the equity market can contribute to their growth. This objective is crucial to assist businesses in planning their future growth and identifying the necessary funding to support their journey from the early stages to eventually becoming a publicly listed company.
Tan Sri Abdul Wahid Omar, Chairman of Bursa Malaysia, stated, “This collaboration reflects the Exchange’s intent to assist Cradle in building a thriving startup ecosystem by addressing a common pain point faced by local startups, namely, access to funding opportunities. Together with Cradle, we are committed to alleviating this challenge and facilitating Malaysia startups in their funding journey with the goal of accelerating their growth and enabling them to list right here within their home country.”
He concluded, “We firmly believe that the outcome of this collaboration will yield a positive impact, benefiting startups, our capital market, and the broader Malaysian economy.”
