The science, technology and innovation ministry said the MoU seeks to bridge funding gaps startups may face within the local ecosystem, supporting them to achieve sustained growth.

The ministry said Cradle Fund’s partnership with KLDX will offer startups the flexibility to choose funding options based on their needs, which would particularly benefit firms that may not traditionally attract local venture capital.

The ministry’s deputy secretary-general, Nor Azman Hassan, said this was a key initiative of its fund funnel programme to fill critical funding gaps in the startup ecosystem.

“By providing alternative funding options, we are enabling startups to scale up and paving the way for Malaysia to be one of the top 20 startup ecosystems globally by 2030,” he said in a statement today.

Cradle Fund CEO Norman Matthieu Vanhaecke said the partnership with KLDX would offer startups an innovative financing option and a “strong alternative” to traditional venture capital funding.

Separately, KLDX CEO R Selvarany said its platform would help startups and small-medium enterprises secure the capital needed to grow and attain long-term success, including the potential for an initial public offering.

“Cradle Fund will actively promote the KLDX platform to its alumni network, offering startups an alternative path for fundraising and bridging the financing gap at crucial growth stages,” the ministry said.

“Additionally, the KLDX platform will be accessible through the MYStartup Single Window platform, providing seamless access to funding solutions for Malaysian startups.”