Malaysia’s early stage startup influencer Cradle Fund Sdn Bhd has added six more partners for its equity co-investment programme where Cradle and the partners will invest up to $3.26 million (MYR14.5 million) to fund local-born tech startups.
Among the six new equity co-investment partners are RHL Ventures, TinkBig Venture, Biz Angel Network, EIX Group, Segnel Ventures and PlaTCom Ventures. This latest inclusion will bring the number of Cradle’s equity co-investment partners from 25) to thirty-one 31.
The equity-coinvestment programme that Cradle started in 2014 where Cradle matches the contribution made by a partner. It has raised a total of $36.25 million (MYR 161.2 million) from the previous six cycles. Among the companies that were funded through the programme are BeMalas, MauKerja, Sync Media and SupplyCart.
For this cycle with the latest six partners, Cradle will match the contribution made by the six partners with Cradle’s co-investment funds reaching $42.73 million (MYR190.2 million), Cradle said at an event in Kuala Lumpur on Monday.
Among the partners, RHL Ventures will contribute an investment amount of $1.12 million, TinkBig – $1.12 million, Biz Angel Network – $449,505, EIX Group – $449,505 and Segnel Ventures – $112,367. PlaTCom Ventures contribution were undisclosed.
Cradle’s existing co-investment partners include Fatfish Ventures Sdn Bhd, OSK Ventures International Bhd, CoENT Ventures Partners Ltd, Crystal Horse Investment Pte Ltd, Captii Ventures Pte Ltd, Kathrein Ventures Sdn Bhd, KK Fund. The government run organisation also signed a grant co-investment partnership with a Singapore-based seed fund provider, Golden Gate Ventures (GGV) back in June 2014
“We wish to have a diversity of investors in our co-investment circle from venture capitalists and institutional investors to ECF platforms whose investors consist of sophisticated angels who are no strangers to funding early stage businesses,” said Cradle Group CEO Nazrin Hassan.
With this, starting next year, Cradle will be introducing direct equity investments, a step further from its current role of a co-investor which had taken in 2014. DEALSTREETASIA had reported this in October.
Nazrin noted that although the economic growth isn’t what it used to be in regional investment scene, Cradle is actively involved in the co-investment scene. Infact, Cradle’s round of partnership also saw a shift in its focus in partner selection process where 5 of its partners are Equity Crowdfunding (ECF) Operators.
This year, the investment scene has been quite slow as compared to last year. It is apparent that the regional investment has subsided and it has affected investments into Malaysian startups.
“However, the introduction of alternative platforms for startups to raise fund through ECF platforms and P2P financing came at the right time. This has helped to reduce the impact of the slowdown,” he added.