In a significant development for Malaysia’s burgeoning startup scene, YB Tuan Chang Lih Kang, the Minister of Science, Technology, and Innovation, presided over the signing of a Memorandum of Collaboration (MoC) between Cradle Fund Sdn. Bhd. (Cradle), the nation’s leading early-stage startup agency, and Bursa Malaysia Berhad (Bursa Malaysia).
The MoC ceremony saw Norman Matthieu Vanhaecke, Acting Group Chief Executive Officer of Cradle, and Aina Zahari, Director of Corporate Strategy at Bursa Malaysia, symbolically exchange the agreement. This MoC has a dual purpose: to raise awareness among startups about the various funding opportunities available in Malaysia, including those provided by the equity market, and to streamline the identification of companies with the potential to list on Bursa Malaysia.
An Integral Component of the Fund Funnel Programme
This collaboration is a pivotal component of the Ministry of Science, Technology, and Innovation’s (MOSTI) Fund Funnel programme. This initiative is specifically 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) stage.
The Fund Funnel programme is closely aligned with Intervention Two of the Malaysia Startup Ecosystem Roadmap (SUPER) 2021-2030, which underscores the need to revamp the local investment ecosystem for greater efficiency, attract high-quality investments, and enhance funding accessibility for startups.
YB Tuan Chang highlighted the significance of this collaboration, stating, “The Fund Funnel addresses the concerns raised by startups regarding the lack of information about government funding opportunities, at the same time, providing clear and concise details about the funding agencies and the specific stages at which they offer financial support. As we introduce the Fund Funnel programme, Malaysia embarks on a transformative journey to fulfil the aspirations outlined in the Malaysia Startup Ecosystem Roadmap.”
Empowering Startups for Success
Norman Matthieu Vanhaecke, Acting Group Chief Executive Officer of Cradle, emphasized that this partnership signifies an ongoing commitment to engage with ecosystem players and enhance transparency in Bursa Malaysia’s listing requirements. He expressed the hope that this collaboration would empower startups to develop comprehensive strategies, ultimately facilitating successful listings on the exchange while bridging critical funding gaps within the ecosystem.
With its two decades of experience in the startup ecosystem, Cradle will provide valuable market intelligence on local startups to assist Bursa Malaysia in identifying potential listing candidates. This partnership capitalizes on Cradle’s track record of supporting over 1,000 Malaysian technology-based firms, boasting one of the highest commercialization rates among funding agencies in Malaysia.
Bursa Malaysia, on the other hand, will leverage the data shared by Cradle to organize programs focused on funding access. Additionally, Bursa Malaysia will offer knowledge sharing and guidance to help startups grasp how the equity market can contribute to their growth, a critical factor in planning their journey from early-stage startups to becoming publicly listed companies.
Tan Sri Abdul Wahid Omar, Chairman of Bursa Malaysia, underlined the intent of the Exchange to assist Cradle in building a thriving startup ecosystem and addressing a common challenge faced by local startups – access to funding opportunities. The collaboration aims to facilitate Malaysia startups in their funding journey, accelerate their growth, and enable them to list on the domestic exchange.
In conclusion, this collaborative effort between Cradle Fund and Bursa Malaysia represents a significant step forward for Malaysia’s startup ecosystem. By enhancing funding accessibility and fostering growth, it is poised to benefit startups, the capital market, and the broader Malaysian economy, aligning with the nation’s aspirations for innovation and technological advancement.
