Source of Finance

The most important source of finance for innovator in Malaysia is through Government’s financial assistance. It related to technology-based companies can be classified into two groups: government funding schemes and grants. Most funding schemes and grants for technology venture are channeled through MAVCAP, MDeC, MTDC, MOSTI, SMIDEC and CRADLE.

In innovation class, I'm introduce to you a Cradle Investment Program is (CIP) which is subsidiaries of MAVCAP and Ministry of Finance (MOF) is Malaysia’s first development and pre-seed funding programme for technology ideas.
It enables budding innovators and aspiring innovative entrepreneurs to make the jump from just having an innovative technology idea to becoming a successful start-up. 

Cradle is approving conditional grants of up to RM150, 000 per tranche per idea for innovative technology ideas with good commercialisation potential, submitted by aspiring groups of individual Malaysian tecnonepreneurs.
Application can be apply through online and feedback of idea will be given by CIP for improving the idea or reject the idea. After approval of idea CIP call applicant to pitching the idea.


Then the source of finance for commercialization like the fund to set up factory is through Venture Capital.

Venture capital (VC) is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as biotechnology, IT, software, etc.

The typical venture capital investment occurs after the seed funding round as growth funding round. VC interest is generating a return through an eventual realization event, such as an IPO or trade sale of the company. It is important to note that VC is a subset of private equity.