Cradle Fund doubles co-investment value with 5 new partners, raises $16m

Mercatus Ventures MD Raiyo Nariman, KK Fund Koichi Saito, Cradle CEO Nazrin Hassan, Start Up Nation founder Anne Cheng, Kathrein Ventures co-founder and CEO Charles Kathrein and Captii Ventures group GM and ED Ng Sai Kit at the ceremony marking the co-investment partnership.

Early stage ecosystem influencer Cradle Fund Sdn Bhd has doubled its co-investment value with another batch of partners. The total value raised now stands at MYR56.7 million ($15.97 million).

The five new partners are Captii Ventures Pte Ltd, Kathrein Ventures Pte Ltd, KK Fund, Start Up Nation Sdn Bhd and Mercatus Ventures Sdn Bhd.

Collectively, they bring in MYR14.35 million, which the Cradle Fund will match in value.

The equity co-investment deals will be structured on a one-to-one basis, with Cradle Fund’s ceiling marked at MYR500,000 in each deal. That maximum for Cradle Fund means that each co-investment deal will be a maximum of MYR1 million.

The partners, however, may independently choose to invest more in a startup should they be interested to, outside of the co-investment deal.

Cradle CEO Nazrin Hassan said the objective of the co-investment partnership program was not limited to attracting private funds to participate in early stage funding for technology startups, but also to diversify its value-add base and attract foreign funds, hence creating more visibility for the Malaysian startup ecosystem.

“Eventually, over the medium to long-term, you will reach a point when private funding will be leading the venture capital ecosystem in the country, with only a minimal contribution by the government and public funding,” he said in his speech, noting that such a mature funding ecosystem would likely take a decade to achieve.

With the five new partners on board, Cradle Fund now has 10 co-investment partners to date.

The previous batch of equity co-investment partners were Fatfish Ventures Sdn Bhd, OSK Ventures International Bhd, CoEnt Venture Partners Pte Ltd and Crystal Horse Investments Pte Ltd. In this batch, the co-investment fund size came up to MYR11.5 million.

In June last year, the influencer also signed a grant co-investment deal with Singapore-based Golden Gates Ventures (GGV). Under the same structure, Cradle Fund was to match GGV’s investment of up to MYR500,000.

By the end of this year, the group aims to forge co-investment partnerships with 21 local and foreign investors. As for companies it is looking to invest under this co-investment programme, he said there are two deals in the final stages of being closed.

From the broader perspective, Cradle Fund Investment and Relationship management vice president Juliana Jan said there are around 20 companies being evaluated at the moment and the intention was to seal 7 deals by the end of this year.

It is actively looking through 170 deals in total.

Government-supported Cradle Fund, which earlier provided grants solely to the startups, has begun gradually reducing grant-giving by adopting the co-investment structure.

Cradle Fund’s target is to hit a fund allocation ratio of 70 per cent co-investments and 30 per cent direct grants by 2017.

In its 10-year track record, Cradle Fund has funded almost 700 Malaysian technology start-ups through its CIP Catalyst product development grant and its CIP500 product commercialisation grant.

Also read:

Malaysia’s Cradle to co-invest $7m with four firms

Malaysia’s Cradle to launch $16.5m seed venture fund, target ‘fun businesses’

EXCLUSIVE: Golden Gate Ventures to raise $50m in second fund

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.