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CReating And Developing Leading Entrepreneurs Updated: 9th Sept 2008 An introduction to CIP Presentation.

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Presentation on theme: "CReating And Developing Leading Entrepreneurs Updated: 9th Sept 2008 An introduction to CIP Presentation."— Presentation transcript:

1 CReating And Developing Leading Entrepreneurs Updated: 9th Sept 2008 An introduction to CIP Presentation

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 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.

4 Maturity Expansion Where we are in the Funding Ecosystem Time Growth & Profit Funding Needs Point Zero 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 Seed Pre Seed Growth 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

5 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 ICT Mobile/Wireless Tech Creative Multimedia & Content Development Shared Services Outsourcing Hardware Design Software Development Internet-based Businesses Non-ICT Biotechnology Bio-informatics Bio-chemicals Bio-diagnostic tools Agriculture & Food Tech Advanced Materials Advanced Manufacturing- related Tech Renewable Energy/ Waste Mgmt / Recycling Tech High-Technology Consumer & Business Products

6 Types Of Developmental Programme * More innovative CIP funding products are being developed for entrepreneurs Entrepreneurs Public RM50,000 per Tranche (max 3 Tranches) Funding of Idea Prototype & Biz Plan Universities/Colleges Research Institutes, Students RM50,000 per Tranche (max 3 Tranches) Funding of Idea & Enhancements Towards Innovation & Commercialization for Entrepreneurs for University

7 Conditional GrantMarket ValidationCommercial Exposure Proven Developmental Structure & Services 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 50K 150K

8 Associations (NGOs) & Government Agencies that have direct impact on industrial development in the areas of technology & innovation. Associations (NGOs) – MACRI, NEF, TeAM, MIRC, MINDS & PIKOM; Govt. Agencies – MDeC, MBC, MTDC, MIMOS & SME Corporation. Industry Partners Financial investors or commercial investors, such as large corporations - access ideas via the Ideas Bank, where they will contact entrepreneurs that interests them Current participants include: MAVCAP, MICP, iSpring Capital, DTA Ventures, Bank Islam Venture Capital. Funding Partners Providing a commercial perspective to the entrepreneurs by providing mentors and beta test sites, and eventually first orders. Entrepreneurs can indicate corporations they want to work with; list includes Litrak, Maxis, Sunway, Westport, TH Group, Advance Synergy Capital, etc. Commercialization Partners Developmental Partners


10 How do I apply? Applications only accepted online! No Mail-in or Email No Attachments Helpline: Email: Cust. Relations: +603.21664730 Online Application

11 Process & Client Charter Application and Evaluation Process Recommendation and Approval Process Disbursement and Mentoring 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 & funding disbursement on milestones & tranches Short Listing / Interview / Deliverables Setting/ Summary Due Diligence Process Decision by Industry Approval Committee 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. Request for Tranche 2 & 3 Approval Idea Refinement Programme 6-8 weeks Batch ClosingApproval Mobilization 4-6 weeks

12 ** Revised Structure Mentoring: a)RM5000 per mentor per tranche (different mentors); max RM15,000, or b)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 & 3 rd party testing/certification with concrete statistical data. Approval * Subject to Performance 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 Graduation Completion

13 10 weeks Application 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 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 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 months Ideas Bank Period Graduate Tranche 2

14 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 Proof of Concept and/or Product or Service Prototype and Business Plan (Compulsory) Review and Feedback Build and Test Plan and Design 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 Deliverables RM 100,000 RM 150,000 RM 50,000 + +

15 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

16 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 3 rd 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.

17 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

18 Ideas Bank Commercialisation partners Funding partners Seed Funding Where Do My Ideas Go? 4 months CIP Idea Development Tranche 1 12 Months Ideas Bank Period Matching 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.

19 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

20 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

21 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

22 Register & Apply For at Now! Batch Closing is Midnight every 3 rd Monday of every month Thank you and Good Luck ! Q&A Session

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