Cradle Investment Program


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  • Agreement Types 1-3-3 (same idea) 3-3-3 (diff ideas; cannot run in parallel) Note: 1-3-1 (same idea) To include CP 1 offer letter - with conditional approval Annexure B (idea description) – to provide the breakdown of total deliverables Annexure C (costing) – to include funding quantum by tranches E.g. Annexure C1, C2 & C3
  • Part of the Cradle Programme to provide entrepreneurs access to markets and investors after the Cradle funding period.
  • Keep it simple, layman terms, as if you are explaining to a total stranger who doesn’t know as much as you. Keep it specific, do not digress with irrelevant information. Get straight to the point. Think like us to convince us.
  • Cradle Investment Program

    1. 1. CR eating A nd D eveloping L eading E ntrepreneurs Updated: 9th Sept 2008 An introduction to CIP Presentation
    2. 2. Overview of Cradle  Individuals with Innovative Ideas having insufficient funds to realize their 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
    3. 3. Who we are? <ul><li>Cradle Investment Programme (CIP) was rationalized and funded by Ministry of Finance, Inc. in 2003. </li></ul><ul><li>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. </li></ul>Our Vision <ul><li>To bridge the entrepreneur with alternate source of funding and market access for their products and services . </li></ul>
    4. 4. Where we are in the Funding Ecosystem Time Growth & Profit Funding Needs Point Zero 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 Cradle Investment Programme Institutional & Foreign Investors, Public Funds, Merger & Acquisitions, Merchant Banks MDeC Expansion Production & Commercialisation Market Entry Production Enhancement New Markets Scaling & Expansion Commercial Success Pre IPO Listing & Go Global Design & Conceptualisation Idea Birth Product Prototype & Proof of Concept
    5. 5. What we do ? <ul><li>Developmental Focus </li></ul><ul><ul><li>Pre-Seed – Idea stage or up to Proof of Concept and Lab/Industrial prototype development </li></ul></ul><ul><li>Investment Focus </li></ul>Cradle funds Technology Innovation with Commercial Value
    6. 6. Types Of Developmental Programme * More innovative CIP funding products are being developed for entrepreneurs Towards Innovation & Commercialization for Entrepreneurs for University
    7. 7. What the Programme offers <ul><li>Proof that Idea Works! </li></ul><ul><li>Links between Investors, Angels, VCs, Financiers, Tech & Commercialisation Partners </li></ul><ul><li>Press & Media Exposure </li></ul><ul><li>Industry Partners </li></ul><ul><li>Proven track record & credibility </li></ul><ul><li>Complete business coaching programme to assist entrepreneurs </li></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Mentoring </li></ul></ul><ul><li>Complete project deliverables as your application, don’t pay back! </li></ul><ul><li>Ideas Bank Terms & Conditions apply </li></ul>In 3 Tranches of
    8. 8. Developmental Partners
    9. 9. <ul><li>SO NOW YOU HAVE AN IDEA </li></ul><ul><li>DO YOU WANT TO KNOW MORE? </li></ul>
    10. 10. How do I apply? <ul><li>Applications only accepted online! </li></ul><ul><li>No Mail-in or Email </li></ul><ul><li>No Attachments </li></ul><ul><li>Helpline: </li></ul><ul><li>Email: </li></ul><ul><li>Cust. Relations: +603.21664730 </li></ul>Online Application http://www. cradle
    11. 11. Process & Client Charter <ul><ul><ul><li>Recommendation to fund by CIP to Internal Committee </li></ul></ul></ul>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 & funding disbursement on milestones & tranches Short Listing / Interview / Deliverables Setting/ Summary Due Diligence Process <ul><ul><ul><li>Decision by Industry Approval Committee </li></ul></ul></ul>The entire approval process is expected to be completed within 10 weeks from the batch closing date. Batch closing dates are the 3 rd Monday of every month. Application and Evaluation Process Request for Tranche 2 & 3 Approval Idea Refinement Programme 6-8 weeks Batch Closing Approval Mobilization 4-6 weeks
    12. 12. Revised Structure ** <ul><li>Mentoring: </li></ul><ul><li>RM5000 per mentor per tranche (different mentors); max RM15,000, or </li></ul><ul><li>RM10,000 per mentor for all tranches (same mentor); max RM10,000 </li></ul><ul><li>Cost for New Funding Areas may be claimed during any of the 3 tranches (** or for just 1 tranche) : </li></ul><ul><li>Purchase/execution of industry market research & feasibility studies, </li></ul><ul><li>IP search, advisory and registration, partial for full IP drafting & submission. </li></ul><ul><li>Product marketing collaterals and product test samples expenses. </li></ul><ul><li>Market surveys & 3 rd party testing/certification with concrete statistical data. </li></ul>Approval * Subject to Performance * Subject to Performance 4 months 4 months 4 months Deliverables <ul><li>Business Planº </li></ul><ul><li>Prototype Alpha¹ </li></ul><ul><li>Proof of Concept </li></ul><ul><ul><li>(when applicable) </li></ul></ul><ul><li>Business Plan¹ </li></ul><ul><li>Prototype Alpha² </li></ul><ul><li>Proof of Concept </li></ul><ul><ul><li>(when applicable) </li></ul></ul><ul><li>Business Plan² </li></ul><ul><li>Prototype Beta </li></ul><ul><li>Proof of Concept </li></ul>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 Graduation Completion
    13. 13. Revised Structure: Ideas Bank 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 * Subject to Performance * Subject to Performance Support Evaluation Commercialisation Point Update Commercial Profile Business Plan & Executive Summary Update Review Update Commercial Profile Ideas Bank Role Business Plan & Executive Summary Update Review Business Plan Draft Review Initiate Executive Summary Build Commercial Profile Support Services <ul><li>Workshops </li></ul><ul><li>Review Measures </li></ul><ul><li>Capacity Building Trainings </li></ul><ul><li>Idea Refinement Programme </li></ul><ul><li>Workshops </li></ul><ul><li>Review Measures </li></ul><ul><li>Capacity Building Trainings </li></ul><ul><li>Idea Refinement Programme </li></ul><ul><li>Workshops </li></ul><ul><li>Review Measures </li></ul><ul><li>Capacity Building Trainings </li></ul><ul><li>Idea Refinement Programme </li></ul><ul><li>Pipeline Initiatives </li></ul><ul><ul><li>Fundraising </li></ul></ul><ul><ul><li>Sales </li></ul></ul><ul><ul><li>Pitch & Networking </li></ul></ul><ul><li>Workshops </li></ul><ul><li>Idea </li></ul><ul><li>Refinement </li></ul><ul><li>Programme </li></ul>+6 months Graduate Tranche 3 Graduate Tranche 1: 12 months + 6 months Ideas Bank Period Graduate Tranche 2
    14. 14. Milestones & Deliverables <ul><li>You need to clearly define what </li></ul><ul><li>you plan to do with the grant award </li></ul><ul><li>CIP Grants are for: </li></ul><ul><li>Milestones can follow a pattern and be customized for your particular idea project </li></ul>Tranche 1: 4 Months Limit: RM 50,000 <ul><li>Mobilization </li></ul><ul><li>Milestone 1 Deliverables </li></ul><ul><li>Milestone 2 Deliverables </li></ul><ul><li>Milestone 3 Deliverables </li></ul>Tranche 2: 4 Months Limit: RM 50,000 <ul><li>Mobilization </li></ul><ul><li>Milestone 4 Deliverables </li></ul><ul><li>Milestone 5 Deliverables </li></ul><ul><li>Milestone 6 Deliverables </li></ul>Tranche 3: 4 Months Limit: RM 50,000 <ul><li>Mobilization </li></ul><ul><li>Milestone 7 Deliverables </li></ul><ul><li>Milestone 8 Deliverables </li></ul><ul><li>Milestone 9 Deliverables </li></ul>RM 100,000 RM 150,000 RM 50,000 +
    15. 15. Approved Expenses for CIP Disbursements <ul><li>Reasonable allowance for the Project Team & the Entrepreneur </li></ul><ul><ul><li>Not meant to replace salary </li></ul></ul><ul><li>Raw Materials, Tools, Equipment, Research Materials </li></ul><ul><li>Necessary personnel, services & technology needed to produce prototype, conduct demo for proof of concept </li></ul><ul><ul><li>e.g. Outsourcing fees, testing </li></ul></ul><ul><li>Specialized consultants & researchers for Business and Feasibility Plan purposes, approved by CIP </li></ul><ul><li>Transition to Tranche 2 & 3 must be justified by significant product development aspects towards going to market & innovation. </li></ul><ul><li>New Areas of funding: </li></ul><ul><ul><li>Purchase/execution of market feasibility study & research, </li></ul></ul><ul><ul><li>IP search, advisory and basic agreement drafting, </li></ul></ul><ul><ul><li>Product testing & certification </li></ul></ul><ul><ul><li>Product marketing collaterals expenses </li></ul></ul><ul><ul><li>Incubator Subsidy / Lab rentals </li></ul></ul>
    16. 16. What the Programme is NOT for: <ul><li>Funding companies or for company formation business setup, operational cash flow expenses, patenting, manpower, advertising, etc. </li></ul><ul><li>Loans for non-technological Traditional Cottage Industries & typical/general SME businesses. Low innovation & saturated. </li></ul><ul><li>Money to purchase general use 3 rd party IT related equipment / software / infrastructure for own company use. </li></ul><ul><li>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. </li></ul>
    17. 17. <ul><li>CIP has over 280 mentors </li></ul><ul><li>Mentors are sourced strictly by invitation from the Industry, Community Partners or by Entrepreneurs suggestion. </li></ul><ul><li>Mentors are individuals that have substantial industry experience and considerable domain expertise. Mentors are vetted and approved by CIP. </li></ul><ul><li>During the development period, a mentor will be assigned to provide advise and coaching to the team. </li></ul><ul><li>Mentors are paid RM5,000 per CIP Tranche. The Mentoring fee is paid out of the Grant you receive. </li></ul><ul><ul><li>RM5,000 per mentor per tranche (different mentors); max RM15,000 </li></ul></ul><ul><ul><li>RM10,000 per mentor for all tranches (same mentor); max RM10,000 </li></ul></ul>Mentoring
    18. 18. Where Do My Ideas Go? CIP Ideas Bank Timeline The Ideas Bank 12 months terms & condition, extends by 6 months for Tranche 2 & 3. 4 months CIP Idea Development Tranche 1 12 Months Ideas Bank Period Matching with Investors + 6 months If Tranche 2 completed + 6 months If Tranche 3 completed
    19. 19. Cradle Application Tips <ul><li>Pick a descriptive & concise title </li></ul><ul><li>Have 3 or more team members </li></ul><ul><li>Always use the Pop-Up Clarification Help Guide beside each box in the form. </li></ul><ul><li>Provide supporting market research data or statistics </li></ul><ul><li>Thoroughly explain your idea. Convince us. Read the questions carefully. </li></ul>Do
    20. 20. <ul><li>Summarize your research finding in your own words </li></ul><ul><li>Identify your primary customers </li></ul><ul><li>Identify your main competitors </li></ul><ul><li>Consider what you can deliver within a budget of RM 50,000 in 4-6 months for each Milestone & Tranche </li></ul><ul><li>Try to obtain other matching funds or industry and mentoring support </li></ul>Cradle Application Tips Do
    21. 21. <ul><li>Use headings & points. Layman terms. </li></ul><ul><li>Take your time to make sure you submit a complete description of your idea. Use the ‘ Save ’ button </li></ul><ul><li>Allow time for queries. Do not wait until the batch closing date to submit your application or your responses to queries </li></ul><ul><li>Check your email regularly to facilitate communication </li></ul><ul><li>Click Submit when you’re ready! </li></ul>Cradle Application Tips Do
    22. 22. <ul><li>Register & Apply For </li></ul><ul><li>at </li></ul><ul><li>www. cradle </li></ul><ul><li>Now! </li></ul>Batch Closing is Midnight every 3 rd Monday of every month Thank you and Good Luck ! Q&A Session