KUALA LUMPUR: Pre-seed and development fund provider Cradle Fund Sdn Bhd expects to fund 10 to 15 mobile content and application developers annually through its partnership with mobile learning specialist LTT Global Communications Sdn Bhd.
Cradle Fund manager (ideas bank) Johnathan Lee said the collaboration was aimed at improving the quality of Malaysian mobile content and application developers.
“It’s about improving the quality and yield of the (local) mobile applications. The global mobile industry is growing but the players in the industry are mostly multinational corporations.
“What we’re trying to do is go to the grassroots stage to cultivate start-ups that could, God willing, in the future, become big players in the market,” he said at a memorandum of understanding signing ceremony between the two companies yesterday.
Johnathan Lee (2nd from left) exchanging documents with LTT CEO and MD Wemel Cumavoo at the signing. With them are Cradle vice-president Mohammad Iqbal Yusof and LTT chairperson Maimun Shamsuddin
The collaboration will see Cradle Fund offering up to RM150,000 for potential applicants to develop their innovative mobile content ideas while LTT Global would assist the companies in translating the ideas into commercialised products.
Lee said the sum allocated to each applicant would depend on the merits of the individual applicant.
“There needs to be a start somewhere. Cradle Fund and LTT Global are taking that proactive stance by encouraging the local mobile industry,” said Lee.
Cradle Fund manages the Cradle Investment Programme (CIP) under the auspices of the Finance Ministry, catering to a variety of sectors. Since its inception in 2003, it has received 232 mobile-related applications, of which 35 have been approved for funding.
Cradle Fund has funded about 372 ideas via the CIP. Of the completed ideas, 48% have been commercialised. A sum of RM100mil has been allocated under the CIP and more than RM30mil has already been disbursed.
Lee said mobile applications accounted for up to 15% of the funds allocated under the CIP.
Cradle Fund would be launching a RM500,000 seed fund later this month, he said, adding: “It will be for companies that are ready to enter the market; to manage their working capital and for the purchase of machinery. It will cater for all industries.”