Malaysia’s startup ecosystem is receiving another major boost as Cradle Fund Sdn Bhd officially launched Cradle Elevate, a new RM10 million funding initiative designed to help startups move beyond the difficult early-growth stage.
The programme was launched during the opening of the Cradle LIVE! Roadshow Perak 2026 by Chang Lih Kang, who described the initiative as part of a broader national effort to strengthen Malaysia’s startup ecosystem and improve long-term innovation growth.
At its core, Cradle Elevate is meant to solve a problem many startups quietly face after surviving the early stage of building a company.
How Cradle Elevate Is Addressing The “Missing Middle” Problem
For years, many Malaysian startups were able to access pre-seed or seed grants to validate ideas, build prototypes, and launch their initial products.
However, once these startups reached the next stage, where they already had traction, customers, or validated solutions, many struggled to move further because funding options became much more limited.
This stage is often referred to as the “missing middle”.
According to Chang, many startups manage to survive the initial startup phase, but are still not mature enough to attract larger private investment rounds such as Series A funding.
As a result, many promising companies face difficulties scaling operations, entering new markets, hiring stronger teams, or accelerating product growth.
Cradle Elevate was introduced specifically to bridge this gap.
“Previously, Cradle was more for offering grants for pre-seed and seed funding. But from seed to Series A, we see there’s another gap where we need to fill in,” Chang explained during the launch.
Unlike earlier Cradle initiatives that mainly focused on grants, Cradle Elevate operates through an equity investment model.
This means Cradle will invest directly into selected startups while taking equity ownership in return.
Cradle Elevate Offers Up To RM2 Million Per Startup
Under the programme, eligible startups can receive funding ranging from RM500,000 up to RM2 million.
The total allocation for the initiative stands at RM10 million.
According to Cradle, the investment will be deployed in two tranches. Cradle will invest first, followed by partner investors who may match or exceed the amount invested.
All commitments will be formalised through the relevant subscription instruments.
The funding is targeted at startups that have already validated their business models or products but require additional growth capital before they are ready for larger institutional or venture capital investments.
This is particularly important because many startups fail not because their products are weak, but because they run out of capital during the scaling phase.
According to Chang, the initiative is also designed to encourage greater venture capital participation by helping reduce risks for early-stage investors.
“At this stage, ventures often struggle to access growth capital and unlock market opportunities. This programme would bridge this gap while also encouraging greater venture capital participation by de-risking early-stage investment and building investor trust,” he said.
The Six Main Requirements To Qualify For Cradle Elevate
Cradle has also outlined several important filters and eligibility requirements for startups applying under Cradle Elevate.
Firstly, startups must already be operating at the Pre-Series A or Series A stage, meaning they must already have a working product, real revenue, or demonstrable traction instead of simply being at idea stage.
Secondly, the fundraising size should fall within the programme’s funding range of RM500,000 to RM2 million.
Applicants must also be incorporated in Malaysia as a Sdn Bhd company.
For companies with less than 51% Malaysian ownership, the majority of employees must still be Malaysian.
Another major requirement is that the startup must own its core intellectual property (IP). The IP cannot sit personally with founders or external third parties.
Cradle also stated that no single company or entity should own 25% or more of the company’s shareholding, ensuring the startup is not predominantly controlled by one corporate shareholder.
In addition, startups must have a minimum paid-up capital of RM10,000.
Interested startups can submit expressions of interest through the MYStartup platform and Cradle’s official channels here.
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