Cradle, Bursa Malaysia collaborate to facilitate listing of local startups on Bursa Malaysia
By Digital News Asia September 11, 2023
- Collaboration, part of MOSTI’s Fund Funnel programme
- Aims to boost startup awareness of M’sian funding, including equity markets
A Memorandum of Collaboration (MoC) between Cradle Fund Sdn. Bhd. (Cradle), Malaysia’s early-stage startup leading agency and Bursa Malaysia Berhad has been agreed to in order to raise awareness among startups on funding opportunities available in Malaysia, including those offered by the equity market. Additionally, it seeks to facilitate the early identification of companies with the potential for listing on Bursa Malaysia.
In a statement released by the agency, it was highlighted that this collaboration is an integral part of the Ministry Science, Technology and Innovation’s (MOSTI) Fund Funnel programme, an initiative designed to streamline funding options and provide comprehensive support to startups throughout their funding journey, from the seed stage to the initial public offering .
The implementation of the Fund Funnel programme is also in alignment with Intervention Two, as outlined in the Malaysia Startup Ecosystem Roadmap (SUPER) 2021-2030. This intervention emphasises the importance of restructuring the local investment ecosystem to enhance efficiency and attract high-quality investments, while facilitating access to funding for startups.
Highlighting the significance of the collaboration, Chang Lih Kang stated that the Fund Funnel addresses concerns raised by startups about the lack of information regarding government funding opportunities. It also provides clear and concise details about the funding agencies and the specific stages at which they offer financial support.
“As we introduce the Fund Funnel programme, Malaysia embarks on a transformative journey to fulfill the aspirations outlined in the Malaysia Startup Ecosystem Roadmap,” he added.
“The Fund Funnel programme also signifies the government’s commitment to nurturing startups by providing them with vital access to funding at every stage of their journey, in line with Malaysia MADANI’s aspiration, to build an innovative and high-tech nation,” Chang said.
Market intelligence on the local startup ecosystem
Meanwhile, the acting group CEO of Cradle, Norman Matthieu Vanhaecke highlighted that the collaboration between Cradle and Bursa Malaysia signifies an ongoing commitment to engage with ecosystem players, fostering transparency in Bursa Malaysia's listing requirements.
“Through this collaboration, we aim to empower startups to develop comprehensive strategies, ultimately paving the way for a successful listing on the exchange while bridging critical funding gaps within the ecosystem,” he added.
Under this partnership, Cradle will provide market intelligence on the local startup ecosystem to assist Bursa Malaysia in identifying potential listing candidates. With over 20 years of experience in the startup ecosystem, Cradle has engaged with companies across all stages of development and funding, offering support to over 1,000 Malaysian technology-based firms, resulting in the highest commercialisation rate among funding agencies in Malaysia.
Facilitating funding access
On the other hand, Bursa Malaysia will analyse the data shared by Cradle and collaborate with them to organise programmes focused on facilitating funding access. Additionally, Bursa Malaysia will support Cradle in knowledge sharing and help startups gain a better understanding of how the equity market can contribute to their growth.
It stated that this is a crucial objective to assist such businesses in planning their future growth and identifying the necessary funding to support their journey from the early stages to eventually becoming a publicly listed company.
The chairman of Bursa Malaysia, Abdul Wahid Omar stated that this collaboration reflects the Exchange’s intent to assist Cradle in building a thriving startup ecosystem by addressing a common pain point faced by local startups, namely access to funding opportunities.
“Together with Cradle, we are committed to alleviate this challenge and facilitate Malaysia startups in their funding journey with the goal of accelerating their growth, and enabling them to list right here within their home country,” he added.
“We firmly believe that the outcome of this collaboration will yield positive impact, benefiting the startups, our capital market and the broader Malaysian economy,” Abdul Wahid said.
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