Cradle Fund, Bursa Malaysia to help startups secure funding, go for listing

KUALA LUMPUR: The partnership between Cradle Fund Sdn Bhd and Bursa Malaysia Bhd is a step forward in propelling local startups for a listing on the stock market.

The two companies today inked a memorandum of collaboration to further enhance awareness pertaining to funding. This includes funding from the equity market.

The partnership also aims to facilitate in the process of early identification of potential companies that are poised for listing on Bursa.

Science, Technology and Innovation Minister Chang Lih Kang said the collaboration is part of the ministry's Fund Funnel programme, an initiative designed to streamline funding options and offer comprehensive support to startups throughout the funding journey.

This includes from the seed stage to the initial public offering. The Fund Funnel programme was established to address the concerns related to startups particularly due to lack of information about government funding.

To streamline information, the programme aims to provide clear details about funding agencies and the stage where financial support is offered.

Through the partnership, the government would be able to build robust mechanisms to ensure accessibility to startups to necessary funding, mentorship and infrastructure.

"By leveraging the strengths of agencies like Cradle and institutions like Bursa Malaysia, we will enhance the ecosystem's capacity to provide startups with the support they need," Chang said at the signing ceremony here.

Bursa chairman Tan Sri Abdul Wahid Omar emphasised that there are two key areas the company intends to focus on through the partnership.

"Firstly, through knowledge-sharing and organising programmes to raise awareness of funding opportunities available through the equity market, to accelerate growth journeys;

"And secondly, by identifying the necessary assistance required by start-ups and offering support by connecting them with other advisers where needed, until they become publicly listed companies on Bursa Malaysia," he said.

The collaboration is poised to boost more initial public offerings (IPO) from various sectors particularly technology-related IPOs.

Technology companies can also take advantage of the listing expenses incentive provided by the government.

Cradle acting group chief executive officer Norman Matthieu Vanhaecke said the collaboration is for two years.

Cradle will provide market intelligence of the local startup ecosystem to assist Bursa in identifying potential listing candidates.

"Through this collaboration, we hope to empower startups to develop their comprehensive strategies, ultimately paving the way for a successful listing on the exchange while bridging critical funding gaps within the ecosystem.

"By strategically aligning resources, expertise and collaboration, we create an enabling environment where startups can thrive, revolutionise industries and drive economic growth," he added.