CReating And Developing Leading Entrepreneurs Updated: 9th Sept 2008

An introduction to CIP Presentation

Overview of Cradle

Individuals with Innovative Ideashaving insufficient funds to realizetheir 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

Who we are? Cradle Investment Programme (CIP) was rationalized and

funded by Ministry of Finance, Inc. in 2003. 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.

Our Vision To bridge the entrepreneur with alternate source of funding and

market access for their products and services .

Exp

ansi

on

Where we are in the Funding Ecosystem

Time

Growth & Profit

Fu

nd

ing

Nee

ds

Point Zero

Production &

Commercialisatio

n

Market Entry

Production

Enhancement

New Markets

Scaling &

Expansion

Commercial

Success Pre IPOListin

g &

Go Global

Design &

Conceptualisatio

n

Idea Birth

Product Prototype

& Proof of C

oncept

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

CradleInvestmentProgramme

Institutional & Foreign Investors, Public Funds, Merger & Acquisitions, Merchant BanksMDeC

What we do ? Developmental Focus

Pre-Seed – Idea stage or up to Proof of Concept and Lab/Industrial prototype development

Investment Focus

Cradle funds Technology Innovation with Commercial Value

Types Of Developmental Programme

* More innovative CIP funding products are being developed for entrepreneurs

To

war

ds

Inn

ova

tio

n &

C

om

mer

cial

izat

ion

for Entrepreneurs

for University

What the Programme offers

Proof that Idea Works! Links between Investors, Angels, VCs, Financiers, Tech & Commercialisation Partners

Press & Media Exposure Industry Partners

Proven track record & credibility Complete business coaching programme to assist entrepreneurs

Training Mentoring

Complete project deliverables as your application, don’t pay back! Ideas Bank Terms & Conditions apply

In 3 Tranches of

Developmental Partners

SO NOW YOU HAVE AN IDEA

DO YOU WANT TO KNOW MORE?

How do I apply?

Applications only accepted online! No Mail-in or Email No Attachments

Helpline: Email: enquiries@cradle.com.my Cust. Relations: +603.21664730

OnlineApplication

http://www.cradle.com.my

Process & Client Charter

Application and Evaluation Process

Recommendation to fund by CIP to

Internal Committee

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 & fundingdisbursement on

milestones & tranches

Short Listing / Interview /Deliverables Setting/

Summary Due Diligence Process

Decision by IndustryApproval Committee

The entire approval process is expected to be completed within 10 weeks from the batch closing date. Batch closing dates are the 3rd Monday of every month.

Request for Tranche 2 & 3

Approval

Idea Refinement Programme

6-8 weeksBatch Closing Approval Mobilization 4-6 weeks

**

Revised Structure

Mentoring:a)RM5000 per mentor per tranche (different mentors); max RM15,000, orb)RM10,000 per mentor for all tranches (same mentor); max RM10,000

Cost for New Funding Areas may be claimed during any of the 3 tranches (** or for just 1 tranche):a)Purchase/execution of industry market research & feasibility studies, b)IP search, advisory and registration, partial for full IP drafting & submission.c)Product marketing collaterals and product test samples expenses.d)Market surveys & 3rd party testing/certification with concrete statistical data.

Ap

pro

val

* S

ub

ject

to

P

erfo

rman

ce

* S

ub

ject

to

P

erfo

rman

ce

4 months 4 months 4 months

Deliverables Business Planº Prototype Alpha¹ Proof of Concept

(when applicable)

Business Plan¹ Prototype Alpha² Proof of Concept

(when applicable)

Business Plan² Prototype Beta Proof of Concept

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

Gra

du

atio

n

Co

mp

leti

on

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

* S

ub

ject

to

P

erfo

rman

ce

* S

ub

ject

to

P

erfo

rman

ce

Support

Evaluatio

n

Commercialis

ation

PointUpdate

Commercial P

rofile

Business

Plan &

Execu

tive S

ummary

Update Revie

w

Update

Commercial P

rofile

Ideas Bank Role

Business

Plan &

Execu

tive S

ummary

Update Revie

w

Business

Plan

Draft R

eview

Initiate E

xecu

tive S

ummary

Build C

ommercial P

rofile

Revised Structure: Ideas Bank

Support Services Workshops Review Measures Capacity Building Trainings Idea Refinement Programme

Workshops Review Measures Capacity Building Trainings Idea Refinement Programme

Workshops Review Measures Capacity Building Trainings Idea Refinement Programme

Pipeline Initiatives Fundraising Sales Pitch & Networking

Workshops Idea Refinement Programme

+6 months

Graduate Tranche 3

Graduate Tranche 1: 12 months+ 6 monthsIdeas Bank Period

Graduate Tranche 2

Milestones & Deliverables• You need to clearly define what you plan to do with the grant award

• CIP Grants are for:

• Milestones can follow a pattern and be customized for your particular idea project

Tranche 1: 4 Months

Limit: RM 50,000

• Mobilization

• Milestone 1 Deliverables

• Milestone 2 Deliverables

• Milestone 3 Deliverables

Tranche 2: 4 Months

Limit: RM 50,000

• Mobilization

• Milestone 4 Deliverables

• Milestone 5 Deliverables

• Milestone 6 Deliverables

Tranche 3: 4 Months

Limit: RM 50,000

• Mobilization

• Milestone 7 Deliverables

• Milestone 8 Deliverables

• Milestone 9 DeliverablesR

M 1

00,0

00R

M 1

50,0

00R

M 5

0,00

0

+

Approved Expenses for CIP Disbursements Reasonable allowance for the Project Team & the Entrepreneur

Not meant to replace salary

Raw Materials, Tools, Equipment, Research Materials

Necessary personnel, services & technology needed to produce prototype, conduct demo for proof of concept e.g. Outsourcing fees, testing

Specialized consultants & researchers for Business and Feasibility Plan purposes, approved by CIP

Transition to Tranche 2 & 3 must be justified by significant product development aspects towards going to market & innovation.

New Areas of funding: Purchase/execution of market feasibility study & research, IP search, advisory and basic agreement drafting, Product testing & certification Product marketing collaterals expenses Incubator Subsidy / Lab rentals

What the Programme is NOT for:

Funding companies or for company formation business setup, operational cash flow expenses, patenting, manpower, advertising, etc.

Loans for non-technological Traditional Cottage Industries & typical/general SME businesses. Low innovation & saturated.

Money to purchase general use 3rd party IT related equipment / software / infrastructure for own company use.

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.

CIP has over 280 mentors Mentors are sourced strictly by invitation from the Industry,

Community Partners or by Entrepreneurs suggestion. Mentors are individuals that have substantial industry

experience and considerable domain expertise. Mentors are vetted and approved by CIP.

During the development period, a mentor will be assigned to provide advise and coaching to the team.

Mentors are paid RM5,000 per CIP Tranche. The Mentoring fee is paid out of the Grant you receive.

a) RM5,000 per mentor per tranche (different mentors); max RM15,000

b) RM10,000 per mentor for all tranches (same mentor); max RM10,000

Mentoring

Where Do My Ideas Go?

4 months

CIP Idea DevelopmentTranche 1

12 Months

Ideas Bank PeriodMatching with Investors

CIP Ideas Bank Timeline

+ 6 months

If Tranche 2 completed

+ 6 months

If Tranche 3 completed

The Ideas Bank 12 months terms & condition, extends by 6 months for Tranche 2 & 3.

Cradle Application Tips

Pick a descriptive & concise title

Have 3 or more team members

Always use the Pop-Up Clarification Help Guide beside each box in the form.

Provide supporting market research data or statistics

Thoroughly explain your idea. Convince us. Read the questions carefully.

Do

Summarize your research finding in your own words

Identify your primary customers

Identify your main competitors

Consider what you can deliver within a budget of RM 50,000 in 4-6 months for each Milestone & Tranche

Try to obtain other matching funds or industry and mentoring support

Do

Cradle Application Tips

Use headings & points. Layman terms.

Take your time to make sure you submit a complete description of your idea. Use the ‘Save’ button

Allow time for queries. Do not wait until the batch closing date to submit your application or your responses to queries

Check your email regularly to facilitate communication

Click Submit when you’re ready!

Do

Cradle Application Tips

Register & Apply For

at

www.cradle.com.myNow!

Batch Closing is Midnight every 3rd Monday of every month

Thank you and Good Luck !Q&A Session