Sep 22, 2015

Malaysia’s Cradle to co-invest $7m in four firms Another nine investors on the one-to-one equity co-investment scheme include Australia-listed Fatfish Ventures Sdn Berhad, OSK International Ventures Berhad (OSKVI), Japanese firm CoEnt Ventures Partners Ltd, Singapore-based Crystal Horse Investments Pte Ltd, Captii Ventures Pte Ltd, Kathrein Ventures Pte Ltd, KK Fund, Start Up Nation Sdn Berhad and Mercatus Ventures Sdn Berhad. The two batches of equity co-investors were announced in November 2014 and April this year. Cradle had also signed a grant co-investment partnership with Singapore’s Golden Gate Ventures in June 2014. He added, during his announcement speech: “The addition of the new partners is a promising indication that proves that private investors, both local and foreign, are looking to invest in early-stage Malaysian startups and they do believe in the promise and potential of our local technology startups.” Cradle will match the amount invested by each co-investor in each deal, capped at MYR1 million, under its one-to-one investment scheme. Cradle has a target to seal seven investments deals, and to partner with 21 co-investors this year. Thus far, it has closed three deals with OSKVI in Sync Media and MauKerja, and with KK Fund in BeMalas. The three investments totaled approximately MYR4.025 million. Towards 2017, Cradle plans to channel 70 per cent of its funding allocation to co-investing initiatives, and aim to forge partnerships with 21 investors, locally and globally. Aside from the MYR107.2 million co-investment fund, Cradle also manages MYR30 million government allocation for 2015 and MYR40 million in venture capital. Cradle’s new partners The four new co-investors, although equally keen on the Malaysian market for technology startups, have different focuses in their investment strategies. SMS Asia assistant investment manager Keith Ng said the firm primarily zones in on healthcare and IT businesses while MOCC, which founders have experience in brick-and-mortar industries are looking to diversify its portfolio further with technology startups. East Ventures, known for its successive investments in Indonesia technology startups, said it does not have any specific industries it limits its scope to. The firm invested in 70 deals since its setup, two of which are Malaysian startups Shoppr and Kaodim. “As long as they are internet businesses with mobile element, and especially if they are creating solutions for the Southeast Asia emerging markets,”associate Melisa Irene said. Qeerad’s focus is on mobile and software as a solution (SaaS) companies. On whether the depressed Malaysian Ringgit has affected funding activities, Cradle said the impact has not been significant so far. “We don’t see any effect yet; it does bring more value to the investee, if they raised in US dollar. More startups are looking to raise in US dollars, after seeing the currency volatility,” she said. Also Read: