FOR CLARITY AND CONTEXT

No I was not misquoted LOL! I think the writer took great pains to ensure the article was balanced. I wrote this to provide further clarity and context to the article written by Oliver Christopher Gomez that appeared on The Edge Malaysia Weekly on 13 April 2020 (Enterprise Section). The link to the article is here.

“Bootcamps” is probably a reference to our Coach & Grow Programme (CGP), which is currently in its 5th Season (first run in 2011)

“Standalone agency in the early 2000s” Cradle was established in 2003 as a unit under MAVCAP and was spun off as a separate entity in 2007

“RM189 million between 2009 and 2019” is actually RM189 million from 2011 and 2018 of which slightly less than 90% was deployed as grants

“CIP Catalyst – an ideation stage grant” the CIP Catalyst is a pre-seed grant program that provides funding for very early stage ideas. The purpose of this program is to assist a team of individuals to develop technology based innovation (ideas) into working prototypes and/or proof of concepts that have commercial value. CIP Catalyst recipients also receive business networking and other value-add support to help nurture, develop and prepare them for business model development, market validation and market access. This programme has ended

CIP Catalyst is “measured by commercialisation, and/or number of products sold” it also includes any funding raise

“There is no minimum commercialisation requirement for CIP Catalyst recipients” there are actually customised deliverables set for each start-up. They take into account their stage of development and funding objectives

“The agency does not track, nor does it require grant recipients to provide or commit to minimum revenue figures” as mentioned above, every startup commits to a specific set of deliverables, depending on what the objective of their funding requirement, it can either be products developed and/or revenue and/or traction. Cradle does track and monitor progress is during the funding period and 24 months post funding

“There is not even a requirement to disclose revenue figures to better track the effectiveness of the grant for that particular business” the primary objective of the CIP Catalyst is to ensure completion of a prototype. The prototype is then tested for market acceptance by way of sales to beta customers or early adopters. The RM150k funding is not intended to create a full-fledged commercial product. What it does though, is give the startup an opportunity to prove their idea, gain initial traction and sales which could attract interest from investors who will come in a fund the startup to the next stage

“If they do not provide us with any data, we really cannot compel them to do so” having said that, startups are, by contract, required to provide half yearly reports within a 24 month monitoring period following completion

“The follow-on funding rule does not make a distinction between private and public sector funds”... it does not need to because Cradle focuses on a startup’s ability to validate its products and business model and to fund raise beyond Cradle's initial funding. The source of funding is less important in that sense

“CIP 300 grant, which continues to exist” this programme has ended. Cradle's NEW grant programmes are expected to be launched in late May 2020. Stay tuned!

“With Cradle’s (equity) investment aspirations barely a few years old” (parentheses added) while it would be easy to think of this as a 'negative' the changes instituted do help focus available resources as well as provide clarity to the market

“The result of these changes are that Cradle’s existing equity investments are now effectively in limbo” Cradle’s investments are not in limbo. We continue to commit resources to manage them effectively with a view to secure the best returns for our stakeholders

“Cradle currently has a little under 30 equity investments on its books” this number includes investments made by our subsidiary Cradle Seed Ventures

“Our target companies have now changed” our target has not (never) changed. It is still focused firmly on early stage tech startups. “Change” if there was any, is perhaps in terms of emphasis or scope of audience