Cradle Fund, the focal point agency for Malaysia’s startup ecosystem, and VentureTECH, an impact investment company established by the government of Malaysia, have entered
into a strategic collaboration aimed at fostering structured discussions between fund providers across government and private sectors.

The Ministry of Science, Technology and Innovation (MOSTI) said in a statement on Friday that this partnership is a key initiative under the ministry’s Fund Funnel program, designed to address one of the critical challenges identified in the Malaysian startup ecosystem, which is lack of continuous financial coverage from early-stage to later-stage funders.

This gap has been recognized as a significant barrier to growth, as highlighted in the Malaysia Startup Ecosystem Roadmap (SUPER) 2021-2030, it noted.

“The Fund Funnel partnership is a strategic move to streamline the funding process within our startup ecosystem that supports the aspirations under KL20 Action Plan,

“By fostering closer and stronger collaboration between early and later-stage fund providers, we facilitate a smoother funding journey for our startups,” said Chang Lih Kang, Minister of MOSTI.

“Aligned with the Ekonomi MADANI framework, this initiative is crucial in ensuring that our innovative startups receive the support they need to scale and succeed, ultimately driving Malaysia’s growth as a global innovation hub,” he added.

Norman Matthieu Vanhaecke, Group Chief Executive Officer of Cradle, said their partnership with VentureTECH represents a significant step forward in their mission to support Malaysia’s startup ecosystem.

“By combining Cradle’s expertise in early-stage funding with VentureTECH’s focus on technology-driven investments, we are creating a more cohesive and comprehensive support system for startups,

“This collaboration will enable us to better identify and nurture high-potential startups, ensuring they have the resources and guidance needed to achieve long-term success,” he added.

Ahmad Redzuan Sidek, Chief Executive Officer of VentureTECH, stated this collaboration with Cradle strongly reflects VentureTECH’s commitment to supporting the Malaysian startup ecosystem by bridging critical funding gaps.

“The partnership not only aligns with our mission to empower technology-driven companies but also enhances the overall investment landscape,

“Our focus is to ensure these companies can access the right funding at the right time, ultimately driving high-potential startups towards sustainable growth and equipping them with the necessary resources to thrive in a competitive global market,” he added.

According to the statement, under Intervention 2 of SUPER, there is a pressing need to remodel the investment attraction framework to enhance its efficiency and attract higher-quality investments.

It noted the collaboration between Cradle and VentureTECH directly addresses this by establishing a more coherent and integrated funding pathway for startups, ensuring a smoother transition from early to later-stage investments.

It is noted that VentureTECH, recognized for its commitment to catalyzing the growth of local industries, particularly Bumiputera companies, focuses on equity investments in high value-added and high technology industries, with an emphasis on biotechnology and bio-based, green, and emerging industries.

Beyond capital investment, the firm also provides strategic support, mentorship, and industry connections, aiming to nurture innovative ideas that demonstrate high growth potential and scalable business models for sustainability.

The collaboration between Cradle and VentureTECH was formally established with the exchange of the partnership documents at the Malaysia Commercialisation Year (MCY)
Summit 2024 recently.

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