This article was first published on The Star

KUALA LUMPUR: Cradle Fund Sdn Bhd plans to invest in 13 start-ups this year through its newly-launched investment product, Direct Equity 800 (DEQ800).

Vice-president for investment, Azman Hood, said with a total fund size of close to RM11 million, it would invest in 10 start-ups via direct equity and finalise three co-investment deals.

Speaking to reporters after the launch of DEQ800 in Kuala Lumpur on Monday, he said DEQ800 offers a capital injection of between RM300,000 and RM800,000 for local early-stage tech start-ups.

"We received a RM22 million allocation (from the Finance Ministry) this year with 50% for DEC800. The balance is set for a new grant funding product to be launched in April," he added.

Azman said DEQ800 could serve as an alternative to stimulating the growth of high-potential tech start-ups and make the early stage funding ecosystem in the country more robust.

The maximum investment duration per company is seven years, he said.

The focus investment sectors are financial services, tourism, business service, electrical and electronics, wholesale and retail, education, healthcare, communications content and infrastructure, oil, gas and energy, agriculture, information and communications technology (ICT) and non-ICT sectors.

Targeted and potential investee companies are start-ups with tech-based products or services. They must have been in operation for less than five years and have at least a 51% ownership by Malaysians.

The companies must also own all the rights, titles and interest in the intellectual property relating to the prototype, products and/or services for the purpose of commercialisation, as well as limited by shares and total revenue of not more than RM5 million.

Since its inception in 2003, Cradle has helped over 700 Malaysian tech start-ups and holds the highest commercialisation rate among government grants in the country. - Bernama