The early stage start-up influencer, Cradle Fund Sdn Bhd announces its Cradle Investment Programme (CIP) has had a significant impact on the economy over the years. According to a study done in collaboration with HELP University – Impact Study of the Cradle Investment Programme (CIP) – Value Creation in Startup Ecosystem –have shown that the CIP has contributed RM3.4 Billion to the GDP and that contribution is projected to reach RM30.8 Billion by 2030. The report also shows that the CIP has also contributed to job growth in the country creating 80 600 full-time jobs as well as successfully attracting RM1.3 Billion in private and foreign funds over an eight year period from 2008.
The study concluded that from a public allocation of RM158.8 Million (2008 – 2016) Cradle has been able to support local and regional economic prosperity and the value derived from individuals, communities, and businesses from access to and use of the funds and added value support exceeds even direct jobs and wage impacts. It significantly contributes to the build-up of a sustainable tech ecosystem in Malaysia.
According to Razif Abdul Aziz, Acting Group CEO of Cradle, “The CIP demonstrates that the right funding at the right time, combined with the extensive ecosystem development and support for which Cradle is known for, can bring far greater outcomes than that of ordinary public spending. It is exciting time to be an entrepreneur. In a fast-changing world, a single idea can overturn an industry overnight. New businesses can grow faster than ever. Entrepreneurs are also becoming increasingly important to the global economy. Entrepreneurs drive innovation – often much more quickly than established competitors. Successful entrepreneurs, by definition, have figured out a way to do things better. They have challenged the status quo, asked tough questions and compete with established businesses. When an entirely new industry is created, the odds are that an entrepreneur is responsible. When entrepreneurs are able to innovate like this, they drive economic growth and create jobs at an even faster rate”.
Other findings from the study include:
– Increase in Tax Collection from GDP contribution;
– Produced permanent recurring income effect on the economy;
– Commercialisation funding raised by Cradle start-ups under CIP Catalyst – RM41 Million;
– Further funding raised by Cradle Entrepreneurs under CIP500 – RM1.3 Billion;
– 5 successful exits among CIP500 grant recipients through acquisitions;
– 75% commercialisation rate under CIP Catalyst;
– Total revenue of RM283 Million by CIP500 Grant Recipients;
– 75% of Cradle Entrepreneurs under CIP500 are on track to be successful SME;
– Cradle’s Coach and Grow Programme supports business scale-ups whilementoring enhance business execution;
Cradle provides opportunities for further funding and business expansion from private investors (VC, angels etc) and Industry Partners; and Cradle provides Pre-Seed and Seed funding to support innovative tech-based business ventures.
Since its inception, Cradle has funded over 800 Malaysian tech start-ups and that number continues to grow today through its CIP300 pre-commercialisation grant, DEQ800 equity investment programme and its venture capital arm, Cradle Seed Ventures.