INTRODUCTION

1.    What is CIP 500?
CIP 500 is:

• The first pure technology seed or commercialisation fund offered by Cradle to help budding Malaysian companies with technology-based ideas attain commercialisation
• A conditional grant which offers funding of up to a maximum of RM500,000 per deal 
• One of the two main funds offered under the Cradle Investment Programme (CIP)

2.    What is the maximum grant that will be funded?
Each company will qualify for a maximum of two (2) consecutive approvals, each approval worth up to a maximum funding of RM500,000.

3.    How long is the duration of the grant?
CIP 500 provides funding for up to 12 months.

4.    What type of clusters or areas does CIP 500 cover?
CIP 500 funds both ICT and non-ICT innovations within the following industries:

• ICT
     - Mobile/wireless tech
     - Creative multimedia & content development
     - Shared services outsourcing
     - Hardware design
     - Software development (Bio-informatics, consumer productivity applications, data mining & business intelligence, electronic design automation, enterprise & business services, gaming & interactive entertainment, Internet & e-Commerce, networking, communications & connectivity, open source, operating systems, security)
     - Internet-based businesses

• Non-ICT
     - Biotechnology (Bio-informatics, Bio-chemicals, Bio-diagnostics tools, agriculture and food tech)
     - Advanced materials
     - Advanced manufacturing-related tech
     - Renewable energy / waste management / recycling tech
     - High-technology consumer & business products

• Others
     - Semi-conductors (manufacturing of integrated circuits, microprocessor, logic devices, chipsets, memory chips)
     - Life sciences (neuroscience, organic chemistry, potential drug target & method of treatment inventions, protein & nucleic acid-based inventions, small molecule chemistry & pharmaceuticals, medical devices, drug delivery systems, molecular biology assays, tools & techniques, analytical chemistry)
     - Clean technology (energy consumption, power management, alternative fuels & materials)

5.    Why did Cradle introduce CIP 500?CIP 500 was introduced as a specific measure to bridge the existing seed/commercialisation funding gap (i.e. the lack of seed stage equity and debt funding) in the Malaysian technology funding ecosystem.

6.    What are the objectives CIP 500?
With the introduction of CIP 500, Cradle aims to:

• Maintain Malaysia's innovation momentum in the changing landscape of entrepreneurship based on strong commercialisation focus, and
• Create companies that are sizeable, sustainable or venture capitalist (VC)-fundable.

7:   Why should we apply for CIP 500?
CIP 500 provides budding Malaysian companies with the necessary funds, support and skills required to support commercialisation.

8.    Who is eligible to apply for CIP 500?
Any budding company which meets the criteria below:

• At least 51% of the company's equity is held by Malaysians, and
• Company in operations for less than three (3) years, and
• Company's total revenue is not more than RM5mil in its total financial history, and
• Company owns the Intellectual Property (IP) rights of the products and/or services, which is intended for commercialisation
• Company already has a prototype which only requires another 8% to 10% product refinement work to meet market & industry's expectations/demands.

9.  What are the items that can be funded (allowable expenses) under the CIP 500?
 Items that can be funded under the CIP 500 include the following:

• product development, testing, design and packaging
• marketing expenses (including collaterals, travel where necessary, etc)
• IP search & registration as well as market research & feasibility studies
• remuneration of employees (up to 30% of total funding amount only)
• rental and utilities
• purchase of hardware and software 
• training (where necessary)
• business plan refinement
• technology licensing / acquisition (if applicable)
• mentoring / coaching expenses & professional fees
• production related expenses (where necessary)
• contingency expenses (10%) - insurance, tax, duties, licensing, etc

11.    What value add services does CIP 500 offer?
CIP 500 recipients will receive the following additional services from Cradle throughout   their funding period:

• Development services:
     - Monitoring
          * Business scaling
          * Business performance
     - Mentoring
     - Product refinement
     - Skills & Entrepreneurial training
• Value added services:
     - Market access / Business development
     - Funding pipeline access
     - Competency building
     - Strategic partnerships

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