The government of Malaysia established VentureTECH, an impact investment company, and Cradle Fund, the central organization for the country’s startup ecosystem, have partnered strategically to promote organized dialogues between fund providers in the public and private sectors.
This partnership is a major initiative under the Ministry of Science, Technology, and Innovation’s (MOSTI) Fund Funnel program, which aims to address a critical challenge in the Malaysian startup ecosystem: a lack of consistent financial coverage from early-stage to later-stage funders. The ministry made this announcement in a statement.
As stated in the Malaysia Startup Ecosystem Roadmap (SUPER) 2021–2030, this gap has been identified as a major growth impediment.
The statement states that in order to improve efficiency and draw in higher caliber investments, the investment attraction framework urgently has to be redesigned under SUPER Intervention.
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It was mentioned that Cradle and VentureTECH’s partnership directly solves this by giving companies access to a more logical and comprehensive funding pathway that facilitates a more seamless transition from early to later-stage investments.
“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.
Notedly, VentureTECH concentrates on equity investments in high value-added and high technology industries, with a focus on biotechnology and bio-based, green, and emerging industries. VentureTECH is known for its dedication to promoting the growth of local industries, especially Bumiputera businesses.
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In addition to money investments, the company offers industry connections, coaching, and strategic support with the goal of fostering creative concepts with strong development potential and sustainable, scalable business models.
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.
At the Malaysia Commercialization Year (MCY), Cradle and VentureTECH exchanged cooperation paperwork, formally establishing their alliance.
About Cradle Fund
Cradle Fund Sdn. Bhd. (Cradle) was founded under the Ministry of Finance Malaysia (MOF) in 2003 to fund high-potential tech start-ups through the Cradle CIP Grant Programme.
About VentureTECH
VentureTECH is an investment company established by the Malaysian government in 2009 to encourage local companies to participate in high-value-added and high-technology industries, which will drive Malaysia into a sustainable high-growth economy.
