THE Cradle Investment Programme (CIP) saw a 120% month-on-month jump in public submissions of ideas for funding in October compared with September, Malaysia Venture Capital Management Bhd (Mavcap) said in a statement.

Mavcap is the manager of (CIP), Malaysia’s first pre-seed fund that converts raw ideas into business ventures.

Of the latest batch of ideas submitted by the Oct 20 deadline, 15% are in the software sector, 13% e-service related and 10% in the area of consumer/business services.

“The numbers are extremely encouraging. It clearly shows there are many individuals with bright ideas out there who are turning to CIP for both financial support and guidance to convert ideas into viable commercial ventures,” Mavcap chief executive Mohd Azwar Mahmud said.

He noted that while most ideas received fell within CIP's focus area, namely information and communications technology and high growth, Mavcap was also on the lookout for ideas in other sectors such as mobile data, multimedia games and biotechnology.

CIP is part of the national stimulus package which intends to fulfil a national agenda to seek and produce technological ideas and innovations from all levels.

Application for the fourth batch closes on Monday, Nov 17 and all applications must be forwarded to its website www.cradle.com.my - Bernama

THE Malaysia Venture Capital Management Berhad (Mavcap) will introduce a new investment programme aimed at creating software technology capabilities to help develop a strong software industry.

Called the Open Source Software-Platform Investment Programme (OSS-PIP), the programme is expected to be launched next month.

According to Mavcap’s senior vice president Nagib Abdullah, the programme will leverage on local talents to build an open source software ecosystem containing key components, including operating systems (OSes) or base technology, development tools, appliances such as security and storage systems, and applications.

“Software development in the country has so far concentrated on applications and integration services. The OSS-PIP programme will be able to expand the coverage of local software industry into core software knowledge,” he told Computimes in Kuala Lumpur on Tuesday.

Mavcap, he added, expects to invest between RM100 million and RM140 million in 40 companies over a two-year period.

Nagib explained that OSS-PIP is focused on open source because participants of the programme will already have technology available to them with the sharing of source code. In addition, they will have access to the global development team in open source technology, he said.

“More importantly, open source exposes local talents to base level technology, which in a proprietary environment would typically be owned by foreign entities such as multinational companies in the software industry.”

Nagib, who is also the OSS-PIP’s director, said Mavcap will predominantly attract participants to the programme through a series of workshops to be run nationwide, with the first one expected to be organised in mid-December. “Interested parties could apply to these workshops and we will make the selection,” he said. “At the workshop, participants will be briefed on the programme, its aims and expectations, and will then be divided into breakout sessions divided along areas of software specialisation like operating system, development tool, Web, and application.”

From the workshops, Mavcap will gain a database of potential investees who will then attend a national-level convention, which can be described as a meeting of minds from the industry, to help them finetune their projects into viable business plans.

The potential investees will undergo the required technical and business assessment before investments could take place.

PETALING JAYA: Malaysian Venture Capital Management Bhd (Mavcap) would be allocating RM70mil to RM140mil over the next two years to an Open Source Software (OSS) initiative, according to its senior vice-president Nagib Abdullah.

The objective of its "OSS-Platform Investment Programme" (OSS-PIP) is to attract professionals to venture out on their own and form a cluster of independent companies offering a comprehensive spectrum of software capabilities to the market.

Nagib said OSS-PIP would invest in 40 local companies within the next two years. "It's open to anyone who has got the technical skill. We don't want marketers or MBA holders," he said.

He said the programme was created in view of a major shift in the software industry.

While the OSS movement is not new, it has been increasingly making the headlines over the past few years with private and public sector organisations across the globe looking at it as an alternative to what they perceive as more expensive proprietary software.

The movement gathered momentum in Malaysia over the last two years when both technology industry body the Association of the Computer and Multimedia Industry of Malaysia (Pikom) and professional body the Malaysian National Computer Confederation (MNCC) formed OSS special interest groups.

The Malaysian Government has also been giving the nod for more OSS deployment in the public sector here. In August, Energy, Communications and Multimedia Minister Datuk Amar Leo Moggie said that for Malaysia to build better software, we need to better understand how it works.

"With proprietary software, some of this information is unavailable," he said at the Free and Open Source Software Conference (Fosscon) 2003 in Kuala Lumpur.

OSS however, he noted, comes with all the information necessary to create and enhance the software.

Moggie also said that the Malaysian Government has begun using, writing and promoting OSS in a number of initiatives.

"Pilot studies are also being conducted to better understand the problems and benefits of migrating to OSS," he said in his keynote speech at Fosscon.

Mavcap's Nagib said that there is a large OSS talent pool in Malaysia. "There are 2,000 open source proponents locally. We only need 200," he said.

Beginning December, Mavcap will host workshops in Penang, Kuala Lumpur, Kota Baru, Johor Baru, Kuching and Kota Kinabalu.

"We will then decide on which companies to invest in by February (next year)," he said.

Nagib said that 20 companies have already approached him regarding OSS-PIP. He would not give names but said that two of them were scheduled to be soon listed on the Mesdaq counter of the Kuala Lumpur Stock Exchange (KLSE).

Security expert and OSS proponent Dinesh Nair, one of the six OSS-PIP consultants, is upbeat about the programme.

He said that many OSS initiatives in other countries have focused on the operating system. "We want to build the entire open source stack. We can then say, 'Here's a solution developed by 20 Mavcap companies.' "

Dinesh added that OSS-PIP investments would not be wasted as the software would "live on" in the OSS community -- the source code would be there for others to continue development.

Meanwhile Nagib said Mavcap was trying to obtain 30,000 sq ft of land in Kuala Lumpur to house a "cluster" for companies under the OSS-PIP.

He also said that there was a possibility of Mavcap taking a similar "cluster approach" in areas such as broadband and gaming applications development.

USAHAWAN Bumiputera menyambut baik dana permulaan (cradle programme) yang diperkenalkan Malaysia Venture Capital Management Bhd (Mavcap) dan sedang berusaha menarik usahawan muda untuk mengemukakan idea mereka melalui laman web www.cradle.com.my.

Ketua eksekutifnya, Mohd Azwar Mahmud, berkata penyertaan aktif usahawan Bumiputera petanda positif dan menggalakkan kerana ia mencerminkan semangat perintis dan inovasi yang semakin meningkat di kalangan Bumiputera dalam bidang teknologi maklumat dan komunikasi (ICT).

“Daripada 20 pemohon, yang menjadi penerima geran perintis `Cradle’ akhir bulan lalu, sembilan adalah Bumiputera yang kini dipasangkan dengan mentor untuk membantu bagi menukarkan idea mereka menjadi projek perniagaan yang boleh dilaksanakan.

“Setiap penerima mendapat geran berjumlah hingga RM50,000 untuk membiayai projek pembangunan prototaip, konsep pruf dan rancangan perniagaan,” katanya dalam satu kenyataan dikeluarkan di Kuala Lumpur, baru-baru ini.

Beliau berkata, antara bidang diceburi usahawan Bumiputera adalah elektronik komunikasi, perkhidmatan perniagaan online dan platform pembangunan perisian.

Azwar berkata, Mavcap sudah mengenal pasti dan sedang membimbing bakal usahawan Bumiputera menerusi satu program menyeluruh, iaitu bermula dengan menolong menjadikan idea mereka sebagai realiti dan menyediakan bantuan kewangan kepada mereka daripada mula berniaga hingga berkembang.

“Ini selaras dengan hasrat kerajaan yang hendak melihat lebih ramai Bumiputera terbabit dalam perniagaan ICT dan teknologi tinggi,” katanya.

Awal tahun ini, Kementerian Pembangunan Usahawan menyatakan walaupun sektor industri ICT berpotensi untuk berkembang tetapi hanya satu daripada 17 syarikat ICT (enam peratus) adalah milik Bumiputera.

Beliau yakin kejayaan Mavcap membiayai usaha niaga Bumiputera pada masa lalu akan diulangi dengan adanya Tabung Cradle (pra-awal) ini.

Program Pelaburan Cradle adalah tabung pembangunan Malaysia pertama yang membantu menukarkan gagasan kepada usaha niaga komersial.

Dana disediakan bagi membangunkan prototaip, pruf konsep dan/atau rancangan perniagaan serta kajian kemungkinan. Program pembiayaan pra-awal bernilai RM100 juta ini menyediakan geran bersyarat berjumlah sehingga RM50,000 bagi idea inovatif dan bernas yang dikemukakan oleh individu atau syarikat, dengan tumpuan kepada, antara lain, ICT dan teknologi tinggi.

KUALA LUMPUR: The number of bumiputras applying for government funds to commercialise their ideas has risen by 40% within the past quarter, according to Malaysia's largest venture capital fund.

Malaysia Venture Capital Management Bhd (Mavcap) said submissions for its RM100mil Cradle Investment Programme (CIP) showed a marked increase in ideas being submitted by bumiputras in the second round of applications that closed Sept 15.

“This is very encouraging as it reflects a growing pioneering and innovation amongst the bumiputras in the area of information and communications technology (ICT) and high growth sectors,” said MAVCAP chief executive officer Mohd Azwar Mahmud.

CIP is a RM100mil pre-seed funding programme that provides conditional grants of up to RM50,000 for innovative and bright ideas focusing on ICT and high-growth technology.

Mavcap said of the 20 applicants who became the CIP's pioneer grant recipients late last month, nine are bumiputras who were now being paired with mentors to assist in transforming their ideas into feasible business projects.

Each of the recipient received grants of up to RM50,000 each to fund the development of prototypes, proof of concept and/or business plans.

“We are off to a good start in identifying and nurturing budding Malaysian entrepreneurs in ICT and high growth sectors,” said Azwar.

The Entrepreneur Development Ministry said earlier this year that despite the promises of the ICT sector, only one in 17, or 6% of companies involved in ICT-related activities are bumiputra-owned.

Azwar said he was confident that Mavcap's past successes in funding bumiputra ventures would be repeated with the CIP.

Mohd Azwar Mahmud: More technology platform here and abroad.

THE Malaysian Venture Capital Management Berhad (Mavcap) has outlined several initiatives next year, as part of efforts to develop technology-related ideas into viable, commercial projects.

Apart from a continued focus on the Cradle Investment Programme (CIP), it will seek more technology platform here and abroad, and develop their business viabilities, said its chief executive officer Mohd Azwar Mahmud.

According to him, Mavcap has recently acquired two technologies from abroad and placed in local varsities for further development.

One of the technologies is voice recognition, acquired from a university in China, and now undergoing research and development (R&D) efforts at Universiti Malaya, while the other is nanotechnology from Singapore, now placed at Universiti Kebangsaan Malaysia, said Mohd Azwar. “We also aim to have some 40 investee companies next year. So far this year, we have 35 investee companies and hope to have five more by year-end,” he said, adding that Mavcap expects initial public offering (IPO) exercise from five of its investee companies next year.

Mohd Azwar said apart from IPOs, there will also be mergers and acquisitions among its investee companies, and trade sales where several of its investee companies being acquired by bigger companies next year.

Mavcap operates with RM280 million for its direct ventures, RM120 million for seed ventures and another RM100 million for its local outsourcing programme, meant to develop venture capital business in the country.

On the CIP, Mohd Azwar said the first batch of 20 successful applications of the programme will be announced in Putrajaya today in conjunction with its official launch.

Prime Minister Datuk Seri Dr Mahathir Mohamad is expected to officiate the launch.

In the first batch of CIP, aimed at providing pre-seed level funding to local technopreneurs, RM1 million will be disbursed where each application will receive RM50,000. A total of 42 applications were submitted in the first batch, opened from the programme’s launch on July 18 and closed on August 15.

Applications from the second batch, are currently being evaluated.

Among key categories of the applications, said Mohd Azwar, are software, which includes open source tools development, productivity improvement tools and industry specific applications, e-services, as well as consumer and business services.

Mavcap, according to CIP Programme’s deputy head Shannon Boase, is satisfied with the quality of applications.

“Several have quite original ideas. They will be matched with industry mentor to provide assistant in developing their ideas into business,” she told Computimes in Kuala Lumpur last week.

Mavcap is working with an initial fund of RM25 million this year from the total RM100 million allocated for the CIP.

THE additional RM300mil allocated to Mavcap is definitely a show of support and confidence by the government in Mavcap as a key provider of venture capital in Malaysia. It will enhance our capability to provide more funding into the different needs and segment of entrepreneurs who wish to start their own businesses, commercialise new ideas or innovations, or market their products at the local and global levels, and for those in need of capital expansion

Mavcap is fully supportive of the development of small- and medium-sized industries (SMIs) and we see ourselves as helping to create and nurture a new generation of SMIs armed with the latest technology and innovation. These are critical to creating better products and services at a more competitive cost, which in turn elevate them to be global players.

KUALA LUMPUR - Malaysia Venture Capital Management Bhd (Mavcap) is actively seeking for science and technology related ideas that could be nurtured into viable, commercial projects.

Its chief executive officer, Mohd Azwar Mahmud, in inviting the ideas, said the ideas could be from point "zero and put on the paper" and the originators would be given a fund of up to RM50,000. "And if you want to execute what you have put on the paper and if you want to fill up more customers and expand your market, Mavcap is willing to fund about RM42 million from our internal funds," he said in an interview with Bernama recently. Mavcap is the administer of the Cradle Investment Programme (CIP) and its partners include the Technopreneurs Association of Malaysia (TeAM), National Entrepreneurs Forum (NEF), Computer and Multimedia Industry Association of Malaysia (Pikom) and IT Pemuda. The CIP is an innovative Malaysian government programme aimed at encouraging the creation of ideas that could be commercialised. The government expects to stimulate the growth of technopreneurs in the country and the generation of ideas for an innovative knowledge society, through the programme.

The CIP programme provides funds to the would be technopreneurs from the pre-seed stage to financially assisting them in getting their ideas tested and verified for subsequent stages. The Ministry of Finance (MOF) has allocated RM100 million for the "Seed Venture Fund" in which CIP is a part of. Mohd Azwar said potential technopreneurs as well as the Malaysian economy would ultimately benefit from the CIP. "Through CIP, we aim to begin the process of making the Malaysian economy into one that is innovative and knowledge based." To be eligible for the funds, aspirants, regardless of gender, would have to have "really interesting and beneficial ideas" relating to science and technology, he said. They must also be Malaysian citizens of 18 years of age and above. Foreigners could also apply but they would be treated as secondary applicants, Mohd Azwar said. He said the CIP programme was being carried out in batches. Applications for the first batch opened on July 15 and closed on August 15 this year. Applications are now being invited for the second batch which opened on Aug 15 and would close on September 15, he said. A total of 491 applications have been put in so far for the current batch. Out of these, 47 have submitted their ideas and 40 have been recommended to the MOF for approval.

Most applications have come from men, Mohd Azwar said, hoping that more women would come forward to participate in the programme. On a sectoral basis, 25 percent of the applicants are from the software industry, seven percent from e-service, 12 percent from consumer business services, six percent from content and five percent from communication and networking. Mohd Azwar said the CIP programme, expected to be officially launched by Sept 29, was an ideal platform to nurture technology development. "It will strengthen the domestic export position generally and contribute to Malaysia's initiative to position itself as a business process operating centre," he said. It would also spur growth in the information communications technology (ICT) industry in three main areas mobile data, open source software, and broadband and broadcasting, he said. He said Mavcap was currently promoting the programme aggressively through roadshows and workshops, and in collaboration with strategic partners including higher learning institutions. It is also aiming to get between 1,500 and 2,500 applications from the industry partners, he said.

"We are trying to give some ideas where the business opportunities are, ...but, there must be a willingness to take the risks, accept failures and be innovative," he said. The initial programme will last for six months. However, it would be extended based on volume and interest from the community. To boost the growth of the ICT industry in the country, Mavcap would commit to RM60 million worth of investments this year and another RM140 million by the end of 2004, said Mohd Azwar. Meanwhile, he added that the RM100 million grant from the government would be utilised in the next two years. - Bernama

BRIAN Fernandez has a commercially-viable idea, and now he may just have the funds to transform the concept into reality.

The budding entrepreneur has so far spent RM50,000 of his own money, developing a software for data acquisition and telemetry for racing cars.

Yesterday, Fernandez gained another RM50,000 to further explore the economic potential of his original idea. The money comes from the government-initiated RM100 million Cradle Investment Programme (CIP).

“My dream is becoming a reality. By March next year, the software should be ready for the Proton and go-kart races,” he told Business Times yesterday.

Fernandez is among 20 budding entrepreneurs selected by CIP manager Malaysia Venture Capital Management Bhd (Mavcap), a unit of the Finance Ministry. Mavcap’s industry partners in CIP include the National Entrepreneurs Foundation, Technopreneurs Association of Malaysia, IT Pemuda, Association of the Computer Media Industry of Malaysia (Pikom) and the Multimedia Development Corp.

CIP is the country’s first pre-seed funding scheme for ideas mooted by budding entrepreneurs in a broad range of areas, especially in the information, communications and technology sector.

Prime Minsiter Datuk Seri Dr Mahathir Mohamad said entrepreneurs must appreciate every sen extended by the Government to help them achieve their business goals.

“The Government does mind losing its money. Please do not assume we do not care. We are careful before we pump in public money,” he said at the launch of CIP in Putrajaya yesterday.

He said entrepreneurs themselves should have some individual funds to help support their own ideas which would make them more motivated.

“The Government just wants to give a small boost to the companies at the start. Later on, if they show they can stand on their own feet, they can grow on their own, or with other partners.

“Dr Mahathir presented grants totalling up to RM1 million to 20 pioneer entrepreneurs under the CIP, whose ideas ranged from providing tropical fruit export packaging to e-services for ports and banks.

Under the CIP, those who fail will not penalised. Participants do not have to repay the money if the venture fails.

The sectors under consideration for CIP funding are software and information services, Internet services, communication and networking, high tech consumer and business products, electronic and semi-conductors, medical devices and advanced materials and biotechnology and life sciences.

Mavcap chairman Datuk Dr Abdul Samad Alias said the 20 selected entrepreneurs would be partnered with experienced business people under the mentoring scheme.

CIP has over 70 experienced business professionals and entrepreneurs who are willing to contribute to the programme.

Since CIP’s introduction in July this year, Mavcap has received more than 1,200 applications. CIP expects to fund between 300 and 500 ideas by year-end.

Mavcap, incorporated in April 2001, is a unit under the Finance Ministry to nurture and grow the technology sector and venture capital market in Malaysia, handling a total fund of RM500 million allocated by the ministry.

Tengku Ngah Putra Tengku Ahmad Tajuddin had been fascinated with the television since he was a child.Like many childern,he could sit inforny of the TV Wholw day. without the TV, I can't sleep putra confesses.

Today at 36, TV is centre of putra's attention. In fact, more than ever, as he runs two TV manufacturing out-fits - Angguan Permai Industries Sdn Bhd which has manufacturing TV sets since 1991, and Menara Axis Sdn Bhd, formed Last Year specially to make smart TVs.

He still cannot sleep without his daily dose of TV viewing at night. And his two sons ,aged four and one ,are just like him in the aspect.

"The TV is like my soul. i have more than 15 sets at my home.Every night,we have five TV sets on. i'm not a Technical man, but i love to compare the features of different sets available in the market," says Pura

While most see the TV as nothing more than just picture and sound,putra dreams of its potential as intelligent communication device, and works relentlessly towards making his dream a reality.

He says the TV has become basic utility in every home, and should thus be a multipurpose device.

"For too long the TV had been an idiot box . It's time to make it multipurpose and multi-use.

Well Done : Jamaludin (left) congratulating representatives of Investee companies at the ceremony

Big Impact : Deals account for 60 - 70pc of all venture capital investments Venture capitalist Malaysia Venture Capital Management Bhd (MAVCAP) committed RM79.78mil in 28 companies up to last year.

MAVCAP's investment have increased to RM175.5mil in 30 start-ups at at January 31 this year. This represents more than 100 per cent jump in volume. 

Chief Executive Officer Mohd Azwar Mahmud said the deals secured by MAVCAP last year made up between 60 and 70 per cent of the country's venture capital investments.

"This shows we have made a significant impact on the venture capital industry in the country", he said during MAVCAP:Venturing 2002-3003 presentation ceremony at Putrajaya yesterday that was officiated by Second Finance Minister Datuk Dr Jamaludin Jarjis.

MAVCAP, since its incorporation in April 2001, has received a total of 1119 applications requesting RM8.45bil in funds. To date, a total of RM44.64mil has been disbursed to the respective investees.

MAVCAP, a wholy-owned subsidiary of Minister of Finance Inc, provides an alternative source of high-risk financing in the information, communication and technology sector and high growth industries for start-ups, seed capital and early stage companies.

It offer three types of investment programmes - Direct Ventures, Agency Ventures and Seed Ventures.

In his speech, Jamaludin said Finance Ministry is spearheading a multi-agency committee to uncover and make recommendations to the Government on new sources of growth and strategies needed to encourage and sustain newfound sectors in order to sustain economy growth.

"Intellectual capital is the strength of many advanced economies. Most value is created in new technology, new manufacturing process, new designs, strong brands and new business concepts.

"Life in the next decade and beyond will be revolutionised by the growing effect of multi-disciplinary technology across all dimensions of the life, whether social, economic, political or personal, " he added in his speech.

Datuk Jamaludin Jarjis applauding the MoU signing between IT Surplus Chairman Bashah Abdul Aziz (left) and Telekom Malaysia Deputy Chief Executive Datuk Abdul Rahim Daud.

MAVCAP has invested RM78.8mil of the RM500mil fund it manages, in 28 companies, said Second Finance Minister Datuk Jamaludin Jarjis. "It is encouraging to note that the number of applications received and processed by MAVCAP has not slackened despite the economic downturn, " he said at the MAVCAP:Venturing 2002-2003 presentation in Putrajaya yesterday.

Since its incorporation in April 2001, MAVCAP had received 1,119 applications requesting RM8.45bil in funds, of which 28 investee companies were identified and selected. The Finance Ministry's wholly owned venture capital firm had so disbursed a total RM44.64mil.

Of the remaining applications, 292 were under consideration, and the rest turned down.

Of the 292 applications under consideration, 30 were for Seed Ventures, 114 under Direct Ventures and 148 Agency Ventures, involving a total request for RM1.9bil in investment.

Jamaludin said the allocation to MAVCAP, made under Budget 2003, was a brave move by goverment to nurture homegrown technology.

"I hope entrepreneurs with new ideas would support the local technology domestically," he added.