Pre seed funding! What is that? Basically it’s for people who have idea but have no product whatsoever nor any business plan in hand. This funding is for the pre seed stage where you will develop your product prototype and commercialize it. Therefore take note that this funding is primarily to : develop your idea into a prototype product.
Once you have a prototype, it would be much easier to get financing to grow your business. Think of it like this; you go to a bank and ask for loan, you have a working prototype, it would be easier to convince your panel to get the loan!
This is a conditional grant. That means you don’t have to pay back except if you do not meet the conditions agreed between you and CIP, you would be liable to pay back. (example: failure to implement the agreed milestones)
The maximum amount is RM150,000. However, it is delivered in tranches (sections) which means for tranche 1 the maximum amount is RM50,000. If you qualify you can apply for tranche 2 and 3 which is worth RM50,000 each.
For Cradle Investment Programme or called CIP focuses on many areas for pre-seed funding. If your business idea is related to the industry below, you are on track for the funding:
- Software and information services
- Internet: e-content, e-commerce & e-content
- Communication and networking: mobile data
- High-tech consumer and business products
- Electronic and semi conductors
- Medical devices and advanced materials
- Biotechnology and life sciences
- Environmental resources management and renewable energy
- Technology innovation created for any industry
Eligibility criteria is as below:
- Malaysians and aged 18 above
- Minimum 2 applicants to maximum 5 applicants
What are the allowable expenses (these are the only expenses allowed, no such thing where you get RM50,000 in cash, the funds are utilized only for the allowable expenses):
- Development of prototype
- Business Plan
- Purchase of market feasibility research
- IP search and registration
- Survey on statistical data
- Product sampling expenses
The product I mentioned above was CIP but there is also another product called U-CIP which focuses on research products created by university researchers to transform it into a prototype.
For more information, go to
- http://www.cradle.com.my
- call +603 2166 4730
- mail: enquiries@cradle.com.my
Download the documents below to know more about the programme:
Malaysia Entrepreneurship Project 