Cradle and KLDX collaborate to launch different fundraising platform for Malaysian startups

To give Malaysian startups an alternate source of funding, Cradle Fund Sdn Bhd (Cradle), the hub for the country’s startup scene, has teamed up with Kapital DX Sdn Bhd (KLDX), a regional digital securities exchange platform.

This collaboration gives startups more freedom to select funding options that suit their particular requirements, allowing businesses that might not typically draw in local venture capital (VC) funding to raise money via the KLDX platform, according to a statement from Cradle.

The statement claims that this strategic partnership is a major project under the Malaysian Ministry of Science, Technology, and Innovation’s (MOSTI) Fund Funnel Program, which aims to solve the lack of consistent funding from early-stage to later-stage funders, one of the major issues found in the country’s startup ecosystem.

The Malaysia Startup Ecosystem Roadmap (SUPER) 2021-2030 highlights this gap as a major growth barrier.

“The partnership between Cradle and KLDX is a testament to our commitment to nurturing a sustainable startup ecosystem in Malaysia,

“The Fund Funnel program was created to address critical funding gaps in our ecosystem, ensuring that startups have continuous access to capital from earliest stage to their growth phases,” said Mohd Nor Azman Hassan, Deputy Secretary General, Technology Development of the Ministry of Science, Technology and Innovation (MOSTI).

“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 that drive these national ambitions forward,” he added.

Cradle Group CEO Norman Matthieu Vanhaecke highlighted that the company’s partnership with KLDX is an expression of its dedication to fostering and expanding the Malaysian startup scene.

He pointed out that Cradle has a wealth of experience funding early-stage startups and is aware of how important it is for businesses to have ongoing access to capital as they grow.

“Through KLDX, we’re introducing an innovative financing option that provides startups the flexibility needed for growth and innovation,

“We are thrilled to offer this to our alumni and startups across Malaysia as a strong alternative to traditional venture capital funding,” he added.

This partnership is a big step in bridging the funding gap in Malaysia’s startup and small and medium-sized enterprise (SME) ecosystem, according to Selvarany Rasiah, CEO of KLDX.

“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,

“Our platform enables companies to secure the capital they need to innovate, grow, and prepare for long-term success, including the potential for an initial public offering (IPO),” she said.