Cradle Fund Sdn Bhd (Cradle), the focal agency for Malaysia’s startup ecosystem, has exchanged a Memorandum of Understanding (MoU) with KLDX, a groundbreaking digital securities exchange platform to provide Malaysian startups with an alternative fundraising option.
Read also – Masdar and Silk Road Fund Sign Co-investment Agreement for Renewable Energy Projects
This partnership offers startups greater flexibility in selecting funding schemes that align with their unique needs, opening avenues for those not traditionally funded by local venture capitalists (VCs) to raise capital through the KLDX platform.
This strategic alliance is a key initiative under the Ministry of Science, Technology and Innovation’s (MOSTI) Fund Funnel Programme, 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 recognised as a significant barrier to growth, as highlighted in the Malaysia Startup Ecosystem Roadmap (SUPER) 2021-2030.
Commenting on the MoU between Cradle and KLDX, YBhg. Datuk Ts. Dr. Mohd Nor Azman Hassan, Deputy Secretary General, Technology Development of the Ministry of Science, Technology and Innovation (MOSTI) said, “The partnership between Cradle and KLDX is a testament to our commitment to nurturing a sustainable startup ecosystem in Malaysia. The Fund Funnel programme was created to address critical funding gaps in our ecosystem, ensuring that startups have continuous access to capital from early-stage right through growth. By providing alternative funding options, we are enabling startups to scale and paving the way for Malaysia to be one of the top 20 startup ecosystems globally by 2030. MOSTI is committed to supporting collaborations like these that drive our national ambitions forward.” he said.
Norman Matthieu Vanhaecke, Group Chief Executive Officer of Cradle, emphasised, “Our collaboration with KLDX represents Cradle’s commitment to nurturing and growing the Malaysian startup ecosystem. With years of experience funding early-stage startups, Cradle understands the critical need to sustained capital access as companies scale. With KLDX, we’re introducing a critical financing option that gives startups the flexibility to pursue the growth and innovation needed for scaling. We’re thrilled to offer this to Cradle’s alumni and startups across Malaysia as a viable alternative to traditional VCs.”
“We are excited to partner with Cradle in creating a transformative path for Malaysian startups and SMEs to access alternative funding through the KLDX platform,” said Selvarany Rasiah, CEO of KLDX. “This collaboration is a significant step toward closing the funding gap identified in the Malaysian startup and SME ecosystem. Our platform enables companies to secure the capital they need to innovate, grow, and prepare for long-term success, including the potential for an IPO. By offering flexible fundraising options, KLDX and Cradle are empowering Malaysian startups to scale sustainably and contribute to the nation’s vision of becoming a global leader in the startup landscape. This collaboration specifically targets the gap in funding at Series A and beyond, which is often challenging to secure within the local ecosystem. This MoU aims to bridge that gap, providing startups with resources to transition from early-stage funding to sustainable growth, ultimately increasing their prospects of reaching Initial Public Offering (IPO) status.
Cradle will actively promote the KLDX platform to its alumni network, providing startups an alternative fundraising route and bridging the financing gap at crucial stages. Additionally, KLDX platform will be accessible via the MYStartup Single Window platform, ensuring seamless access for Malaysian startups seeking funding solutions.
About KLDX
KLDX is Malaysia’s pioneering digital platform for fundraising and investment, utilizing blockchain technology to enable asset tokenization and enhance efficiency, regulated by the Securities Commission of Malaysia. KLDX’s maiden issuance in March 2024 was a tokenized shariah-compliant Islamic Investment Note raising RM150 million for Integra Healthcare Technology Sdn Bhd. KLDX is committed to transforming the financial landscape through its innovative fundraising and investment platform. Focused on driving financial inclusion, KLDX offers access to a broad range of Islamic & conventional private market assets, enabling greater participation from the wider public.
About Cradle Fund
Cradle Fund Sdn. Bhd. (Cradle) is Malaysia’s early-stage start-up influencer, incorporated under the Ministry of Finance Malaysia (MOF) in 2003 with a mandate to fund potential and high-calibre tech start-ups through the Cradle CIP Grant Programme. Cradle is presently administered by the Ministry of Science, Technology and Innovation (MOSTI).
