Cradle and KLDX Partner to Bridge Funding Gaps for Malaysian Startups

Cradle Fund Sdn Bhd (Cradle), an agency in Malaysia’s startup ecosystem, has formalized a partnership with Kapital DX Sdn Bhd (KLDX), a digital securities exchange platform, through a Memorandum of Understanding (MoU). This initiative aims to provide Malaysian startups with an innovative alternative for raising funds via the KLDX platform.

The partnership gives startups greater flexibility in choosing funding solutions that align with their specific needs. It also opens doors for companies that may not typically attract local venture capital (VC) funding, giving them the opportunity to raise capital through KLDX’s innovative platform.

This partnership is aligned with the Ministry of Science, Technology, and Innovation’s (MOSTI) Fund Funnel Programme, which aims to address the funding challenges faced by Malaysian startups as they progress from early-stage to later-stage financing. Highlighted in the Malaysia Startup Ecosystem Roadmap (SUPER) 2021-2030, this funding gap has been identified as a significant obstacle to the growth and development of local startups.

YBhg. Datuk Ts. Dr. Mohd Nor Azman Hassan, Deputy Secretary General for Technology Development at MOSTI, highlighted the importance of this partnership. He noted that providing alternative funding options would help startups scale and support Malaysia’s vision of becoming one of the top 20 startup ecosystems globally by 2030. The Fund Funnel Programme, he said, is designed to ensure continuous capital access, enabling startups to innovate and grow sustainably.

Norman Matthieu Vanhaecke, Group CEO of Cradle, emphasized the agency’s dedication to supporting startups by addressing funding challenges. He stated that the partnership with KLDX introduces a flexible and innovative financing option for Malaysian startups, particularly those needing alternatives to traditional venture capital funding. This initiative, he added, aligns with Cradle’s mission to foster the growth of a robust startup ecosystem in Malaysia.

Selvarany Rasiah, CEO of KLDX, described it as a transformative step toward addressing funding gaps in Malaysia’s startup and SME ecosystem. She highlighted that the KLDX platform empowers companies to secure the capital needed to innovate and prepare for initial public offerings (IPO) milestones. By offering tailored fundraising options, this partnership helps Malaysian startups to scale effectively and contribute to the nation’s broader startup ambitions.

The MoU prioritizes addressing the funding gap at Series A and beyond, a critical growth stage that remains challenging to secure within Malaysia’s local ecosystem. This partnership aims to provide startups with a streamlined pathway to transition from early-stage financing to sustained growth, ultimately preparing them for milestones such as initial public offerings (IPOs). By leveraging the KLDX platform, startups can access tailored fundraising options, bridging the gap and enhancing their growth potential.

Cradle will actively promote the KLDX platform to its extensive alumni network, offering an alternative route to secure funding during crucial growth stages. The KLDX platform will also be integrated into the MYStartup Single Window platform, ensuring Malaysian startups have seamless access to innovative funding solutions.